EMCOR Group, Inc. ( EME Quick Quote EME - Free Report) has acquired a leading full-service provider of mechanical construction and maintenance services, Dallas Mechanical Group, LLC (DMG). However, the terms of the transaction are not yet disclosed. With this buyout, EMCOR will be able to offer diverse clients with a wide range of innovative, value-added services in the Dallas and North Texas markets. Furthermore, DMG will be part of EMCOR’s Building Services segment. Based in Dallas, TX, DMG provides single-source, energy-efficient installation, maintenance, and repair services for a wide array of heating, cooling, and ventilation systems across North Texas. It serves a variety of market sectors like commercial, industrial, education, healthcare, entertainment, retail and hospitality, along with municipal as well as federal governments. Acquisition Broadens Footprint
EMCOR is keen on acquisition of assets and businesses. The company’s acquisition strategies are directed toward buying small private firms with proven management and expansion potential. EMCOR completed three acquisitions in 2020. During the period, it acquired a company that provides building automation and controls solutions within the Northeastern region of the United States, a full-service provider of mechanical services within the Washington, DC metro area, and another company that provides mobile mechanical services in the Southern region of the United States. The results of operations for all the three companies have been included within U.S. Building Services segment.
These buyouts strengthened its overall results by adding new markets, opportunities and capabilities. The company plans to acquire more such companies in the future. Notably, shares of EMCOR have gained 13% over the past three months, almost in line with the industry’s 13.1% rally. The price performance was backed by a solid earnings surprise history. EMCOR’s earnings surpassed the Zacks Consensus Estimate in seven of the trailing eight quarters. Earnings estimates for 2021 have moved up 3.1% in the past 30 days. This positive trend signifies bullish analysts’ sentiments and justifies the company’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Other Key Picks
Other top-ranked stocks in the broader Construction space include
Gates Industrial Corporation PLC ( GTES Quick Quote GTES - Free Report) , Primoris Services Corporation ( PRIM Quick Quote PRIM - Free Report) , and Altair Engineering Inc. ( ALTR Quick Quote ALTR - Free Report) . Gates Industrial, sporting a Zacks Rank #1, is expected to witness an earnings growth rate of 61.4% for 2021. The Zacks Ranked #2 Primoris’ earnings are expected to grow 9.8% for 2021. Altair Engineering, also a Zacks Rank #2 stock, is expected to witness an earnings growth rate of 45.2% for 2021. Zacks Top 10 Stocks for 2021
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