EMCOR Group, Inc. (EME): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, April 11, 2013

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:

Fortune Brands Home & Security Inc (FBHS) 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 (URS), Aecom Technology Corp (ACM), MasTec Inc (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.

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Company Profile:

EMCOR Group, Inc. (EMCOR) is an electrical and mechanical construction and facilities services firm in the United States, the United Kingdom and globally. 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. In January 2011, the Company acquired a company, which provides mechanical construction services. In June 2011, the Company completed the acquisition of USM Services Holdings, Inc. (USM). In August 2011, the Company sold Comstock Canada Ltd. In November 2011, the Company acquired a company, which provides mobile mechanical services. In January 2012, the Company acquired Southern Industrial Constructors, Inc.

Stock Rating:

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.

Disclosure:

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.

  EMCOR Group Inc - Last 3 Months

  EMCOR Group Inc - Last 12 Months

  EMCOR Group Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: EME

David Moenning


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