EMCOR(EME) ZACKS·2025-04-11 01:25Group 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 545 [2] - Total sales for EMCOR are projected to increase by 13% in fiscal 2025 and by another 4% 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]