Core Viewpoint - EMCOR Group, Inc. and MasTec, Inc. are both prominent players in the infrastructure engineering and construction services sector, benefiting from increased demand for large-scale infrastructure projects driven by public and private investments in data centers, renewable energy, and 5G telecommunications [1][2]. Company Performance EMCOR Group, Inc. (EME) - EMCOR reported record results for 2024, with revenue increasing by 15.8% to $14.57 billion and net income rising by 59% to $1.01 billion, resulting in earnings per share (EPS) of $21.52, a 61.7% increase from 2023 [5]. - The company's Remaining Performance Obligations (RPOs) reached an all-time high of $10.1 billion, up 14.2% year over year, indicating strong revenue visibility into 2025 [3][5]. - EMCOR's operating margin for Q4 2024 was 10.3%, an increase of 190 basis points from the previous year, reflecting effective project execution and cost controls [5]. - The company has consistently beaten earnings estimates, averaging a 29% upside surprise over the last four quarters [6]. - EMCOR's strategic acquisition of Miller Electric for $865 million is expected to enhance its presence in high-growth sectors and contribute approximately $805 million in annual revenues [7]. - As of early 2025, EMCOR held a cash position of $1.34 billion and increased its share repurchase authorization by $500 million, demonstrating financial strength and flexibility [8]. MasTec, Inc. (MTZ) - MasTec experienced a turnaround in 2024, reporting revenues of $12.3 billion, a modest increase from $12.0 billion in 2023, and a net income of $199 million [9]. - The adjusted EPS for MasTec in 2024 was approximately $3.95, more than double the previous year's result, indicating a strong recovery in profitability [9]. - MasTec's adjusted EBITDA margins improved to 8% by Q4 2024, up 110 basis points from the previous year, supported by operational improvements and successful integration of acquisitions [11]. - The company ended 2024 with a record 18-month backlog of $14.3 billion, reflecting a 15% increase year over year, which provides strong revenue visibility and growth potential for 2025 [11]. - MasTec has also consistently exceeded earnings estimates, with an average EPS surprise of 31.6% over the last four quarters [12]. Market Performance - EMCOR shares increased by approximately 110% in 2024 but have since declined by 15.3% year to date due to broader market volatility and concerns over margin sustainability [14]. - MasTec's stock gained around 80% in 2024 but has also pulled back by about 13% year to date, influenced by macroeconomic concerns and the company's investment phase [15]. - Both companies have outperformed the Zacks Building Products - Heavy Construction industry in the current year [15]. Valuation and Growth Estimates - EMCOR's forward 12-month price-to-earnings (P/E) ratio is about 16X, in line with the industry average, while MasTec's is closer to 20X, suggesting that EMCOR may offer better value [21]. - EMCOR's trailing 12-month return on equity (ROE) is 36.4%, significantly higher than the industry average of 15.5% and MasTec's 11.2% [25]. - Analysts have become increasingly optimistic about both companies' earnings potential, with upward revisions in EPS estimates for 2025 [18]. Conclusion - EMCOR is positioned as a more attractive short-term investment due to its balanced fundamental profile, superior execution, and strong returns, while MasTec, despite its high growth potential, carries a higher risk/reward profile due to elevated stock valuation [26][27].

Group 1: Construction and Industrial Products Sector - Several construction and industrial products sector stocks are expected to perform well as spring and summer approach, which are peak seasons for industrial production [1] - Tariffs may impact construction activities, but highly ranked stocks appear to have priced in the potential risks associated with higher imported materials [1] Group 2: EMCOR Group (EME) - EMCOR Group's stock is currently priced at $375 per share, having fallen 31% from a 52-week high of $545 [2] - Total sales for EMCOR are projected to increase by 13% in fiscal 2025 and by another 4% in fiscal 2026, reaching $17.19 billion [2] - Annual earnings for EMCOR are expected to rise by 8% this year and by another 9% in fiscal 2026, reaching $25.40 per share [3] - EMCOR trades at a forward earnings multiple of 15.1X and less than 2X sales, indicating reasonable valuation [3] Group 3: Meritage Homes (MTH) - Meritage Homes is trading near its 52-week low of $59 per share and has a forward earnings ratio of just 7X, which is below the industry average and the S&P 500's 20.8X [5] - The company offers a 2.58% annual dividend yield, making it attractive for investors [5] - EPS for Meritage was $21.44 last year, but earnings are expected to contract, making the current dip an appealing buying opportunity [7] - Earnings estimates for the current year show a significant year-over-year decline of 56.44% [8] Group 4: Sterling Infrastructure (STRL) - Sterling Infrastructure has seen limited buy-the-dip opportunities due to rapid expansion in U.S. infrastructure, particularly in data center manufacturing [9] - The stock is currently trading just over $130, down 21% year-to-date but has increased by 3,000% over the last decade [10] - Recent advancements in AI have led to increased demand for Sterling's data center solutions, alongside new interstate roadway projects in Utah and Colorado [10] Group 5: Market Outlook - With construction activities expected to increase in the warmer months, there is potential for significant upside in the stocks of EMCOR Group, Meritage Homes, and Sterling Infrastructure [12]

Group 1 - Emcor Group's stock closed at $354.39, showing a +1.12% change, outperforming the S&P 500's daily loss of 1.57% [1] - Over the past month, Emcor Group's shares have decreased by 2.96%, which is better than the Construction sector's loss of 11.78% and the S&P 500's loss of 12.16% [1] Group 2 - The upcoming earnings disclosure for Emcor Group is anticipated, with projected earnings per share (EPS) of $4.57, reflecting a 9.59% increase year-over-year [2] - Revenue is expected to reach $3.8 billion, indicating a 10.6% growth compared to the same quarter last year [2] Group 3 - For the full year, earnings are projected at $23.37 per share and revenue at $16.43 billion, showing increases of +8.6% and +12.77% respectively from the previous year [3] - Recent changes in analyst estimates suggest optimism regarding Emcor Group's business and profitability [3] Group 4 - The Zacks Rank system indicates that Emcor Group currently holds a rank of 1 (Strong Buy), which has historically outperformed with an average annual return of +25% since 1988 [5] - The Zacks Consensus EPS estimate has remained stable over the past month [5] Group 5 - Emcor Group has a Forward P/E ratio of 15, which is a premium compared to the industry average of 13.1 [6] - The Building Products - Heavy Construction industry, part of the Construction sector, holds a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [6]

Emcor Group (EME) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Ind ...

EMCOR Group (EME) has delivered a remarkable 142.6% return over the past two years, demonstrating strong long-term performance. However, the stock has hit a rough patch recently, plummeting 15.2% year to date (YTD). The stock even performed below the broader Construction sector’s 9% decline and the S&P 500’s 4.7% decrease.EME’s Share PerformanceImage Source: Zacks Investment ResearchNonetheless, EME stock has performed somewhat better than the Zacks Building Products - Heavy Construction industry’s 15.7% de ...

It has been about a month since the last earnings report for Emcor Group (EME) . Shares have lost about 5.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Emcor Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It tur ...

Group 1 - Jason Hall has no position in any of the stocks mentioned [1] - Tyler Crowe has positions in EMCOR Group [1] - The Motley Fool has positions in and recommends EMCOR Group [1]

Market Overview - The S&P 500 experienced its worst week since September, attributed to "tariff fatigue" and concerns over a potential economic slowdown [1] - Investors are looking for clear signals regarding trade policies, while analysts believe the Federal Reserve will not hastily cut interest rates, preferring to wait for more indicators of inflation stabilization [1] Investment Strategy - Current market conditions present an opportunity to identify quality stocks, with Return on Equity (ROE) being a key measure of quality [2] - Advanced analysis of ROE through DuPont analysis can yield better investment returns by examining operating management, asset management, and capital structure [4][5] DuPont Analysis - DuPont analysis breaks down ROE into three components: Profit Margin, Asset Turnover Ratio, and Equity Multiplier, providing a more comprehensive view of a company's financial health [4][5] - This method helps investors differentiate between companies with high margins and those with high turnover, offering insights into leverage and potential risks associated with high debt levels [6] Screening Parameters - Effective screening parameters include a Profit Margin of at least 3, an Asset Turnover Ratio of 2 or more, and an Equity Multiplier between 1 and 3 [8] - Additional criteria include a Zacks Rank of 1 or 2, and a current stock price above $5 to filter out low-priced stocks [9] Selected Stocks - Hims & Hers Health (HIMS): Zacks Rank 2, average earnings surprise of 40.42% [10] - Blue Bird (BLBD): Zacks Rank 2, average earnings surprise of 49.64% [10] - EverQuote (EVER): Zacks Rank 1, average earnings surprise of 160.73% [10] - EMCOR Group (EME): Zacks Rank 2, average earnings surprise of 28.95% [11] - Sprouts Farmers Market (SFM): Zacks Rank 2, average earnings surprise of 15.12% [12]

EMCOR Group (EME) has seen a notable increase in its earnings outlook, reflecting growing confidence in its future performance. Over the past week, analysts have revised EMCOR’s 2025 earnings per share (EPS) estimate upward from $22.24 to $23.37. This upward revision follows the company’s solid fourth-quarter 2024 results, reinforcing optimism about its ability to sustain momentum.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.EME Stock’s Magnitude-Consensus Estimate TrendImage Sou ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 3rd:EMCOR Group, Inc. (EME) : This company that provides electrical and mechanical construction and facilities, building, and industrial services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.1% over the last 60 days.EMCOR has a price-to-earnings ratio (P/E) of 17.50, compared with 20.00 for the industry. The company possesses a Valu ...