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Here's Why Emcor Group (EME) Gained But Lagged the Market Today

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In the latest market close, Emcor Group (EME - Free Report) reached $446.11, with a +0.11% movement compared to the previous day. This change lagged the S&P 500's 0.22% gain on the day. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.

The the stock of construction and maintenance company has risen by 2.33% in the past month, leading the Construction sector's loss of 2.78% and the S&P 500's gain of 1.47%.

Market participants will be closely following the financial results of Emcor Group in its upcoming release. The company plans to announce its earnings on October 31, 2024. It is anticipated that the company will report an EPS of $4.99, marking a 38.23% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.68 billion, up 14.86% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Emcor Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Emcor Group is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Emcor Group is currently exchanging hands at a Forward P/E ratio of 22.85. This represents a premium compared to its industry's average Forward P/E of 20.64.

The Building Products - Heavy Construction industry is part of the Construction sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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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