Here's Why Emcor Group (EME) Fell More Than Broader Market

Emcor Group (EME) closed at $748.55 in the latest trading session, marking a -4.11% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.48%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 0.56%.

Coming into today, shares of the construction and maintenance company had lost 6.65% in the past month. In that same time, the Construction sector lost 8.85%, while the S&P 500 lost 0.82%.

The investment community will be paying close attention to the earnings performance of Emcor Group in its upcoming release. On that day, Emcor Group is projected to report earnings of $8.31 per share, which would represent year-over-year growth of 26.48%. Simultaneously, our latest consensus estimate expects the revenue to be $5.21 billion, showing a 21.04% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $33.04 per share and revenue of $20.32 billion. These totals would mark changes of +27.72% and +19.64%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Emcor Group. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. As of now, Emcor Group holds a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Emcor Group is currently exchanging hands at a Forward P/E ratio of 23.63. Its industry sports an average Forward P/E of 18.28, so one might conclude that Emcor Group is trading at a premium comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research