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

In the latest close session, Emcor Group (EME) was down 2.95% at $719.01. The stock's change was less than the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.

The construction and maintenance company's stock has climbed by 4.55% in the past month, exceeding the Construction sector's gain of 1.65% and the S&P 500's loss of 0.15%.

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 $5.82 per share. This would mark year-over-year growth of 7.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.19 billion, up 8.29% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $28.27 per share and revenue of $18.05 billion. These totals would mark changes of +9.28% and +6.26%, 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has shifted 3.1% upward. At present, Emcor Group boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Emcor Group is currently exchanging hands at a Forward P/E ratio of 26.21. This indicates a premium in contrast to its industry's Forward P/E of 24.26.

The Building Products - Heavy Construction industry is part of the Construction sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.