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Emcor Group (EME) Laps the Stock Market: Here's Why

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Emcor Group (EME - Free Report) closed at $634.40 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.

The construction and maintenance company's shares have seen a decrease of 1.51% over the last month, not keeping up with the Construction sector's gain of 2.49% and the S&P 500's gain of 2.09%.

The investment community will be paying close attention to the earnings performance of Emcor Group in its upcoming release. It is anticipated that the company will report an EPS of $6.62, marking a 14.14% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.17 billion, reflecting a 12.67% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $25 per share and revenue of $16.67 billion, indicating changes of +16.17% and +14.42%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Emcor Group. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Emcor Group is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Emcor Group currently has a Forward P/E ratio of 24.92. Its industry sports an average Forward P/E of 24.01, so one might conclude that Emcor Group is trading at a premium comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 10, placing it within the top 5% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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