Is it worth investing in Emcor Group Inc. (EME) now?

We recently made a list Top 10 Stocks to Buy According to Navellier & Associates. In this article, we take a look at how Emcor Group Inc. (NYSE:EME) stacks up against other stocks approved by Navellier & Associates.

Founded in 1987 by growth analyst Louis Navellier, Navellier & Associates is an independent firm based in Reno, Nevada. Navellier & Associates specializes in identifying market imperfections to find the best growth stocks using a disciplined system of quantitative and fundamental analysis. With over 30 years of experience, they offer customized portfolio strategies for individual investors to maximize returns while managing risk. Unlike competitors who mimic indexes, Navellier aims to outperform them, resulting in low correlation to benchmarks and increased diversification.

Louis Navellier is the founder, chairman of the board, chief investment officer, and chief compliance officer of Navellier & Associates, Inc. With decades of experience applying academic techniques to real-world market scenarios, he advocates disciplined quantitative analysis to identify stocks that are likely to outperform the market. His approach involves a rigorous three-step process: quantitative analysis, fundamental analysis, and optimization of selected securities for inclusion in a portfolio. This approach has been adopted by the firm, where they employ a highly disciplined, bottom-up stock selection process for most portfolios. First, they scour market and equity statistics to measure return (alpha) and risk (standard deviation), selecting stocks in the top percentiles. Then, they additionally screen top-ranked stocks for high profit margins, strong earnings growth, and reasonable price-to-earnings ratios based on future earnings. Finally, a proprietary optimization model maximizes portfolio alpha while minimizing standard deviation, creating well-diversified portfolios across sectors and industries.

Since 1980, he has shared his insights through MPT Review, a stock market advisory newsletter. Since 1987, he has actively managed individual, mutual fund, and institutional portfolios. Known for his charismatic leadership, Louis Navellier has been featured extensively in international media outlets, including CNBC, Bloomberg, The Nightly Business Report, and Wall Street Week. His insights have also been highlighted in Barron’s, Forbes, Fortune, Investor’s Business Daily, Money, Smart Money, and The Wall Street Journal. He has been featured in books such as “Secrets of the Investment All-Stars” by Kenneth A. Stern and “Investing Under Fire” by Alan R. Ackerman. Mr. Navellier earned a bachelor’s degree in business administration in 1978 and a master’s degree in finance in 1979 from California State University-Hayward.

The story continues

Navellier & Associates is a well-known advisory firm with 1,314 clients and $743,578,818 in assets under management, as reported on Form ADV in March 2024. The Q1 2024 filing shows that they have $811,568,534 in securities under management, with the top 10 positions accounting for 29.01% of the total.

Our methodology

This article looks at Navellier & Associates’ top 10 stocks for the first quarter of 2024. We’ve included analyst ratings and key information about these companies, as well as the number of hedge funds investing in each. Why focus on hedge fund investing? Our research shows that copying the top picks of leading hedge funds can result in better-than-market returns. Our quarterly newsletter strategy, which selects 14 small- and large-cap stocks each quarter, has returned 275% since May 2014, outperforming its benchmark by 150 percentage points. (see more details here).

Construction crew working on a modern electrical installation in a commercial building.

Emcor Group Inc. (NYSE:EME)

Navellier & Associates Share Value: $22,488,793

Number of hedge fund owners: 41

Third in Navellier & Associates’ Top 10 Stocks rankings is Emcor Group Inc. (NYSE:EME). Emcor Group Inc. (NYSE:EME) is a leading mechanical and electrical construction and facilities management company. Founded in 1994 and headquartered in Norwalk, Connecticut, Emcor Group Inc. (NYSE:EME) operates in multiple areas, including commercial, industrial and institutional markets. Emcor Group Inc. (NYSE:EME) margins improved in the first quarter of 2024, driven by improved U.S. construction results, including a favorable revenue mix, improved project execution and strong pricing. Investments in virtual design, prefabrication and automation also boosted productivity, leading to gross margin growth of 210 basis points to 17.2% and adjusted operating margin growth of 220 basis points to 7.6%.

GS Analytics sees strong growth potential for Emcor Group Inc. (NYSE:EME) in both the short and long term. Emcor Group Inc. (NYSE:EME) is trading at 23.22 times fiscal year 2024 estimated earnings per share of $16.25 and 21.82 times fiscal year 2025 estimated earnings per share of $17.29. Earnings per share (EPS) are expected to grow 21.78% this year and 6.43% next year, while revenue is expected to grow 14.11% this year and 7.69% by 2025. At the end of the first quarter of 2024, Navellier & Associates reported owning 64,217 shares of Emcor Group Inc. (NYSE:EME) worth $22,488,793. This investment represented 2.77% of their total portfolio.

In its Q1 2024 investor letter, TimesSquare Capital US Small Cap Growth Strategy stated:

Total EME takes 3rd place on our list of the best stocks to buy according to Navellier & Associates. You can visit Top 10 Stocks to Buy According to Navellier & Associates to see other Navellier & Associates-approved stocks that are on the hedge fund radar. While we recognize the potential of EME as an investment, our belief is based on the belief that AI stocks offer a better chance of achieving higher returns in a shorter time frame. If you are looking for AI stocks that are more promising than EME but are trading at less than 5 times earnings, check out our report on cheapest AI action.

READ MORE: Analyst sees new $25 billion ‘opportunity’ for NVIDIA AND Jim Cramer Recommends These 10 Stocks for June.

Disclosure: None. This article was originally published on Insider Monkey.