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On March 21, EMCOR Group, Inc. (EME - Free Report) hit a new 52-week high of $47.81 per share. The momentum in the share price was driven by the company’s strong fundamentals and recent contract wins.  The stock has been on uptrend, gaining more than 6% since it reported strong fourth-quarter 2013 earnings results on Feb 25.

In the past week, EMCOR was awarded a couple of lucrative contracts. Its subsidiary, F&G Mechanical Corp won a contract for Marbella II Development project in New Jersey on March 18. As per the deal, the company will install the plumbing and fire protection systems at an upcoming luxury apartment.

Prior to this, on March 17, EMCOR’s Poole & Kent Company received a contract from Miami Dade County for constructing one of the Master Pump Stations to expand sewer system capacity in key regions of Florida.

EMCOR has been consistently focused on streamlining its business through measures like the exit from the U.K. construction market while simultaneously strengthening its core businesses. The company has also been gaining significantly from increasing investments in oil and gas infrastructure like the ongoing revamping of the petrochemical refineries in the Gulf coast.

Moreover, the company is reaping benefits from the successful integration of RepconStrickland, the leading industrial and refinery service company that EMCOR acquired in July 2013.

The company had reported robust fourth-quarter 2013 results with adjusted earnings of 76 cents per share surpassing the Zacks Consensus Estimate by 8.6% and year ago earnings by 1.3%. The earnings growth was driven by the company’s diversified business and robust performance of its U.S. electrical construction segment. Its building services business also improved significantly in the quarter.

Moreover, on Jan 13, 2014, the company raised its quarterly dividend by 33% to 32 cents (or $1.28 annually) in its effort to share more profit with its shareholders. Based on the closing share price of $47.55 on Mar 21, 2014, the new dividend implies a yield of 0.67%.

The Zacks Consensus Estimate for 2014 nudged up 0.4% to $2.59 as there has been an upward estimate revision in the last 30 days. The Zacks Consensus Estimate for 2014 is currently pegged at $2.59 per share, reflecting a year over year growth of 16.67% while fiscal 2015 is estimated to be $2.98 per share, translating to year-over year-growth of 14.86%.

The company’s commitment toward improving its performance while increasing shareholders’ return reflects its free cash flow generating capability, sound liquidity position and better prospects. Looking ahead, the company remains confident of its growth potential, suggesting enhanced value for shareholders. The expected long-term earnings growth rate for the stock is 15.0%.

Another company, Chicago Bridge & Iron Company N.V. (CBI - Free Report) , which operates in the same industry also achieved a new 52-week high of $87.08 on March 18 on the back of continuous contract wins.

EMCOR currently has a Zacks Rank #3 (Hold). Investors interested in this sector could consider better-ranked stocks like India Globalization Capital, Inc. and MasTec, Inc. (MTZ - Free Report) , both of which have a Zacks Rank #2 (Buy).

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