Back to top

Image: Bigstock

Emcor Group (EME) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

Emcor Group (EME - Free Report) closed the latest trading day at $356.46, indicating a -0.61% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The construction and maintenance company's shares have seen an increase of 2.34% over the last month, surpassing the Construction sector's gain of 1.53% and falling behind the S&P 500's gain of 3.64%.

The investment community will be paying close attention to the earnings performance of Emcor Group in its upcoming release. On that day, Emcor Group is projected to report earnings of $4.99 per share, which would represent year-over-year growth of 38.23%. Alongside, our most recent consensus estimate is anticipating revenue of $3.68 billion, indicating a 14.86% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Emcor Group. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Emcor Group is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Emcor Group is presently trading at a Forward P/E ratio of 18.39. For comparison, its industry has an average Forward P/E of 18.3, which means Emcor Group is trading at a premium to the group.

The Building Products - Heavy Construction industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 11, placing it within the top 5% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


EMCOR Group, Inc. (EME) - free report >>

Published in