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Emcor Group (EME) Dips More Than Broader Market: What You Should Know

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Emcor Group (EME - Free Report) closed at $388.08 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 1.55%, and the Nasdaq, a tech-heavy index, lost 0.35%.

Shares of the construction and maintenance company have depreciated by 11.75% over the course of the past month, underperforming the Construction sector's loss of 6.27% and the S&P 500's loss of 2.31%.

The investment community will be paying close attention to the earnings performance of Emcor Group in its upcoming release. In that report, analysts expect Emcor Group to post earnings of $4.57 per share. This would mark year-over-year growth of 9.59%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.8 billion, indicating a 10.6% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $23.37 per share and revenue of $16.43 billion, indicating changes of +8.6% and +12.77%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Emcor Group should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 5.08% higher. Currently, Emcor Group is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Emcor Group is presently being traded at a Forward P/E ratio of 16.94. This valuation marks a premium compared to its industry's average Forward P/E of 16.46.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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