Bull’s Eye Report: Emcor Group (EME)

Construction stocks tend to move together, but EME presents the best entry point

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
EMCOR Group Inc EME Construction & Engineering 9.2 +11.71% $38.37

Why We Like The Stock:

Emcor Group (NYSE:EME) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in a strong sub-industry. Construction & Engineering stocks tend to move together, as URS Corp. (NYSE:URS), AECOM Technology (NYSE:ACM), MasTec (NYSE:MTZ), and EME have all recently pulled back off of late-February highs. After the short-lived pullback, the sub-industry turned on a dime and is now back to trending higher, which has been the name of the game since October 2012.

EME in particular looks like a great buy as it has just crossed above its short-term moving averages, has support at its 50-day moving average, and a short-term upside north of $42. As long as the stock can hold above the 50-day moving average and continue its recent turnaround, we like EME at current prices for a run back up to its all-time highs at $42.56.

We Would Be Buyers:

At the current price (~$40.05), or on a pullback to the 50-day moving average at $39.15.

Company Profile:

EMCOR Group, Inc.  is a global electrical and mechanical construction and facilities services firm. The company provides services to a range of commercial, industrial, utility and institutional customers through approximately 70 operating subsidiaries and joint venture entities. It specializes in providing construction services relating to electrical and mechanical systems in facilities of all types and in providing comprehensive services for the operation, maintenance and management of facilities services.

Stock Rating: 9.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Emcor Group – Last Three Months

EME 1 Bulls Eye Report: Emcor Group (EME)

Emcor Group – Last 12 Months

EME 2 Bulls Eye Report: Emcor Group (EME)

Emcor Group – Last Five  Years

EME 3 Bulls Eye Report: Emcor Group (EME)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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