EMCOR Group (EME) is truly a hidden gem stock. But it won’t be hidden for long if they keep knocking it out of the park each earnings season.
Since EME is not a well known company, then let me share with you the basics.
They are a leading specialty construction firm with expertise in power transmission, voice & data communications and fiber optics. This means they are riding some serious growth trends which helps explain the 57% year over year earnings growth.
What it doesn’t explain is the 10 straight beat and raise earnings reports that propelled shares 5X since the middle of 2022. This is where you have to dig into the fundamentals to appreciate the nature of the firm…and nothing does that better than the Zen Ratings.
For starters, EME has an overall “A” rating. Which means it's a Strong Buy because it’s in the top 5% of all the stocks we analyze across 115 different factors.
What really jumps off the charts for EME is the top 3% showing for the 26 factors of Financial strength we review. This means it is an incredibly well-run company…the kind of company that is likely to produce more beat and raise earnings reports in the future that propels shares even higher.
What also stands out for EME with the Zen Ratings is how there is no weakness to be found. In most categories they are in the top 25% of stocks like Value, Growth, Momentum and Sentiment. (See the full Zen Ratings analysis for EME here >)
Since Wall Street analysts are also fundamentally focused it is no wonder that they are also singing the praises of EME. This includes a street high $600 target from Brian Brohpy of Stifel Nicolaus. That is ample upside from the stocks current perch in the mid $400’s.
I have been sharing stock ideas with investors for over 25 years. And I know that many of you audibly gulped when you heard how high the price of EME shares are right now.
That’s because most investors like low priced stocks so they can buy more shares. But that is a total fallacy as low price has nothing to do with value…or growth…or upside price potential.
Those who balked at EME’s starting price of $210 this year missed out on a rocket ride all the way up to $532 at its peak.
This is a reminder that stocks really go up by percentages. In this case that was a 153% gain for EME in 2024 that probably beats just about every stock in your portfolio. (Yes, better than those low price stocks you were attracted to).
Gladly these shares have dipped in December like many other quality stocks. This gives you the prime opportunity to buy now when it’s 14% below the highs.
Few stocks are enjoying as impressive of earnings momentum as EMCOR. This points to likely more earnings beats ahead and a stock price that greatly outperforms the market once again.
I hope you will do the wise thing and consider adding EME shares into your portfolio to enjoy ample reward in the year ahead.
What To Do Next?
EMCOR Group (EME) is just one of the timely stocks found in my Zen Investor portfolio.
We are harnessing the power of the Zen Ratings model as well as top Wall Street analyst recommendations to find more stocks with 100%+ upside potential.
If that is of interest to you, then please click below…
Discover the Zen Investor portfolio & top stocks now >
p.s. The next 2 buy recommendations for Zen Investor will be unveiled on January 8th.
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor of the Zen Investor
What to Do Next?
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