How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Emcor Group (EME) ten years ago? It may not have been easy to hold on to EME for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Emcor Group's main business drivers.
EMCOR Group is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. The company currently operates under the following reportable segments:
United States Electrical Construction and Facilities Services (contributing 23% to total revenues for 2024) – This comprises systems for premises electrical and lighting systems; electrical power transmission and distribution; roadway and transit lighting; fiber optic lines; voice and data communication; as well as low-voltage systems, such as fire alarm, security and process control.
United States Mechanical Construction and Facilities Services (44%) – This involves systems for fire protection; heating, ventilation, air conditioning, refrigeration and clean-room process ventilation; water and wastewater treatment and central plant heating and cooling; plumbing, process and high-purity piping; millwrighting; steel fabrication, erection and welding; as well as controls and filtration.
United States Building Services (21%) – This segment provides various types of support services related to operation and maintenance of clients’ facilities in the U.S. These include commercial and government site-based operations and maintenance; military base operations support services; infrastructure and building projects for federal, state and local governmental agencies.
United States Industrial Services (9%) – This segment comprises industrial maintenance and services that are needed for refineries and petrochemical plants such as designing, manufacturing, repairing and hydro blast cleaning of shell and tube heat exchangers and related equipment; overhaul and maintenance of critical process units in refineries and petrochemical plants.
United Kingdom Building Services (3%) – This segment provides support services related to operation and maintenance of commercial and government client facilities in the U.K.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Emcor Group ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in March 2015 would be worth $8,861.34, or a gain of 786.13%, as of March 25, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 175.76% and the price of gold increased 141.65% over the same time frame in comparison.
Analysts are anticipating more upside for EME.
EMCOR reported mixed fourth-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same. Nonetheless, both top and bottom lines have increased year over year by 9.6% and 41.4%, respectively. The company is benefiting from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and institutional sectors. The remaining performance obligations, as of Dec. 31, 2024, were $10.1 billion, up 14.2% year over year. Although macroeconomic woes and supply-chain disruptions are concerns, the company has strong visibility into 2025. Its recent acquisition of Miller Electric Company is expected to boost market presence in the Southeastern United States. Shares of EMCOR have outperformed the industry in the past six months.
Over the past four weeks, shares have rallied 5.47%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.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
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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