We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If You Invested $1000 in Emcor Group a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Emcor Group (EME - Free Report) ten years ago? It may not have been easy to hold on to EME for all that time, but if you did, how much would your investment be worth today?
Emcor Group's Business In-Depth
With that in mind, let's take a look at Emcor Group's main business drivers.
EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. The company currently operates under the following reportable segments:
United States Electrical Construction and Facilities Services (contributing 22.1% to total revenues for 2023) – This comprises systems for premises electrical and lighting systems; electrical power transmission and distribution; roadway and transit lighting; fiber optic lines; voice and data communication; as well as low-voltage systems, such as fire alarm, security and process control.
United States Mechanical Construction and Facilities Services (40.3%) – This involves systems for fire protection; heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; water and wastewater treatment and central plant heating and cooling; plumbing, process and high-purity piping; millwrighting; steel fabrication, erection and welding; as well as controls and filtration.
United States Building Services (24.8%) – This segment provides various types of support services related to operation and maintenance of clients’ facilities in the U.S. These include commercial and government site-based operations and maintenance; military base operations support services; infrastructure and building projects for federal, state and local governmental agencies.
United States Industrial Services (9.3%) – This segment comprises industrial maintenance and services that are needed for refineries and petrochemical plants such as designing, manufacturing, repairing and hydro blast cleaning of shell and tube heat exchangers and related equipment; overhaul and maintenance of critical process units in refineries and petrochemical plants.
United Kingdom Building Services (3.5%) – This segment provides support services related to operation and maintenance of commercial and government client facilities in the U.K.
On Feb 28, 2024, the company’s board of directors approved a 38.9% quarterly dividend hike of 25 cents per share ($1 per share annually). The dividend will be paid on Apr 30, 2024 to stockholders of record as of Apr 16.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Emcor Group ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $8,339.12, or a 733.91% gain, as of May 9, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 176.58% and the price of gold increased 72.10% over the same time frame in comparison.
Going forward, analysts are expecting more upside for EME.
EMCOR’s first-quarter 2024 earnings topped the Zacks Consensus Estimate by 42.8%. The top and the bottom lines grew year over year as well by 18.7% and 79.7%. The company is benefiting from a continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing and network & communications. As of the first quarter, it witnessed record RPOs growth of 16.5% year over year to $9.18 billion. Also, its focus on operational excellence, accretive acquisitions and shareholder value is encouraging. Although high costs and volatile pricing risks are major concerns, the company has strong visibility into the rest of the year. Owing to the improving trend, EMCOR increased its 2024 view. Shares of EMCOR outperformed its industry in the year-to-date period.
Shares have gained 8.39% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in Emcor Group a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Emcor Group (EME - Free Report) ten years ago? It may not have been easy to hold on to EME for all that time, but if you did, how much would your investment be worth today?
Emcor Group's Business In-Depth
With that in mind, let's take a look at Emcor Group's main business drivers.
EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. The company currently operates under the following reportable segments:
United States Electrical Construction and Facilities Services (contributing 22.1% to total revenues for 2023) – This comprises systems for premises electrical and lighting systems; electrical power transmission and distribution; roadway and transit lighting; fiber optic lines; voice and data communication; as well as low-voltage systems, such as fire alarm, security and process control.
United States Mechanical Construction and Facilities Services (40.3%) – This involves systems for fire protection; heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; water and wastewater treatment and central plant heating and cooling; plumbing, process and high-purity piping; millwrighting; steel fabrication, erection and welding; as well as controls and filtration.
United States Building Services (24.8%) – This segment provides various types of support services related to operation and maintenance of clients’ facilities in the U.S. These include commercial and government site-based operations and maintenance; military base operations support services; infrastructure and building projects for federal, state and local governmental agencies.
United States Industrial Services (9.3%) – This segment comprises industrial maintenance and services that are needed for refineries and petrochemical plants such as designing, manufacturing, repairing and hydro blast cleaning of shell and tube heat exchangers and related equipment; overhaul and maintenance of critical process units in refineries and petrochemical plants.
United Kingdom Building Services (3.5%) – This segment provides support services related to operation and maintenance of commercial and government client facilities in the U.K.
On Feb 28, 2024, the company’s board of directors approved a 38.9% quarterly dividend hike of 25 cents per share ($1 per share annually). The dividend will be paid on Apr 30, 2024 to stockholders of record as of Apr 16.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Emcor Group ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $8,339.12, or a 733.91% gain, as of May 9, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 176.58% and the price of gold increased 72.10% over the same time frame in comparison.
Going forward, analysts are expecting more upside for EME.
EMCOR’s first-quarter 2024 earnings topped the Zacks Consensus Estimate by 42.8%. The top and the bottom lines grew year over year as well by 18.7% and 79.7%. The company is benefiting from a continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing and network & communications. As of the first quarter, it witnessed record RPOs growth of 16.5% year over year to $9.18 billion. Also, its focus on operational excellence, accretive acquisitions and shareholder value is encouraging. Although high costs and volatile pricing risks are major concerns, the company has strong visibility into the rest of the year. Owing to the improving trend, EMCOR increased its 2024 view. Shares of EMCOR outperformed its industry in the year-to-date period.
Shares have gained 8.39% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.