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Emcor Group (EME) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with Emcor Group (EME - Free Report) standing at $430.53, reflecting a +0.81% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

Prior to today's trading, shares of the construction and maintenance company had gained 8.66% over the past month. This has outpaced the Construction sector's gain of 5.79% and the S&P 500's gain of 2.06% in that time.

The investment community will be paying close attention to the earnings performance of Emcor Group in its upcoming release. The company is predicted to post an EPS of $4.99, indicating a 38.23% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.68 billion, indicating a 14.86% upward movement from the same quarter last year.

It is also important to note the recent changes to analyst estimates for Emcor Group. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Emcor Group holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Emcor Group has a Forward P/E ratio of 21.9 right now. For comparison, its industry has an average Forward P/E of 21.24, which means Emcor Group is trading at a premium to the group.

The Building Products - Heavy Construction industry is part of the Construction sector. With its current Zacks Industry Rank of 14, this industry ranks in the top 6% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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