For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Emcor Group (EME Quick QuoteEME - Free Report) ten years ago? It may not have been easy to hold on to EME for all that time, but if you did, how much would your investment be worth today?

Emcor Group's Business In-Depth

With that in mind, let's take a look at Emcor Group's main business drivers.

EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. The company currently operates under the following reportable segments:

United States Electrical Construction and Facilities Services (contributing 22.1% to total revenues for 2023) – This comprises systems for premises electrical and lighting systems; electrical power transmission and distribution; roadway and transit lighting; fiber optic lines; voice and data communication; as well as low-voltage systems, such as fire alarm, security and process control.

United States Mechanical Construction and Facilities Services (40.3%) – This involves systems for fire protection; heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; water and wastewater treatment and central plant heating and cooling; plumbing, process and high-purity piping; millwrighting; steel fabrication, erection and welding; as well as controls and filtration.

United States Building Services (24.8%) – This segment provides various types of support services related to operation and maintenance of clients’ facilities in the U.S. These include commercial and government site-based operations and maintenance; military base operations support services; infrastructure and building projects for federal, state and local governmental agencies.

United States Industrial Services (9.3%) – This segment comprises industrial maintenance and services that are needed for refineries and petrochemical plants such as designing, manufacturing, repairing and hydro blast cleaning of shell and tube heat exchangers and related equipment; overhaul and maintenance of critical process units in refineries and petrochemical plants.

United Kingdom Building Services (3.5%) – This segment provides support services related to operation and maintenance of commercial and government client facilities in the U.K.

On Feb 28, 2024, the company’s board of directors approved a 38.9% quarterly dividend hike of 25 cents per share ($1 per share annually). The dividend will be paid on Apr 30, 2024 to stockholders of record as of Apr 16.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Emcor Group ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in May 2014 would be worth $8,861.75, or a gain of 786.17%, as of May 27, 2024, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 179.12% and gold's return of 77.20% over the same time frame.

Going forward, analysts are expecting more upside for EME.

EMCOR’s first-quarter 2024 earnings topped the Zacks Consensus Estimate by 42.8%. The top and the bottom lines grew year over year as well by 18.7% and 79.7%. The company is benefiting from a continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing and network & communications. As of the first quarter, it witnessed record RPOs growth of 16.5% year over year to $9.18 billion. Also, its focus on operational excellence, accretive acquisitions and shareholder value is encouraging. Although high costs and volatile pricing risks are major concerns, the company has strong visibility into the rest of the year. Owing to the improving trend, EMCOR increased its 2024 view. Shares of EMCOR outperformed its industry in the year-to-date period.

Shares have gained 12.62% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.