Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. 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 $17.1 million.
- EME has traded 2,306 shares today.
- EME is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EME with the Ticky from Trade-Ideas. See the FREE profile for EME NOW at Trade-Ideas More details on EME: EMCOR Group, Inc. provides electrical and mechanical construction and facilities services to commercial, industrial, utility, and institutional customers in the United States. The stock currently has a dividend yield of 0.7%. EME has a PE ratio of 25.2. Currently there are 4 analysts that rate EMCOR Group a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for EMCOR Group has been 395,700 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 1.36 and a short float of 1.5% with 2.68 days to cover. Shares are up 7.9% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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 and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- EME's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- EME's debt-to-equity ratio is very low at 0.24 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 1.32, which illustrates the ability to avoid short-term cash problems.
- EMCOR GROUP INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, EMCOR GROUP INC reported lower earnings of $1.82 versus $2.16 in the prior year. This year, the market expects an improvement in earnings ($2.56 versus $1.82).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for EMCOR GROUP INC is rather low; currently it is at 15.29%. Regardless of EME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.76% trails the industry average.
- You can view the full EMCOR Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.