EMCOR Group (EME) Hits New Lifetime High

Trade-Ideas LLC identified EMCOR Group (EME) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

EMCOR Group

(

EME

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified EMCOR Group as such a stock due to the following factors:

  • EME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.9 million.
  • EME has traded 300 shares today.
  • EME is trading at a new lifetime high.

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More details on EME:

EMCOR Group, Inc. provides electrical and mechanical construction and facilities services to commercial, industrial, utility, and institutional customers primarily in the United States. The stock currently has a dividend yield of 0.6%. EME has a PE ratio of 19. Currently there are 3 analysts that rate EMCOR Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for EMCOR Group has been 430,700 shares per day over the past 30 days. EMCOR Group has a market cap of $3.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.02 and a short float of 1.7% with 0.73 days to cover. Shares are up 7.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EMCOR Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EME's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
  • EMCOR GROUP INC has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EMCOR GROUP INC increased its bottom line by earning $2.72 versus $2.59 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $2.72).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Construction & Engineering industry average. The net income increased by 4.6% when compared to the same quarter one year prior, going from $32.85 million to $34.35 million.
  • After a year of stock price fluctuations, the net result is that EME's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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