/AI%20(artificial%20intelligence)/AI%20Data%20Center%20by%20Gorodenkoff%20via%20Shutterstock.jpg)
- EMCOR (EME) is trading at new all-time highs.
- Shares are up more than 125% over the past 52 weeks.
- EME maintains a 100% “Buy” technical opinion from Barchart.
- Analyst price targets go as high as $1,000, but some, like Morningstar, warn shares are overvalued after their major run-up.
Today’s Featured Stock
Valued at $37.32 billion, EMCOR (EME) is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. EME checks those boxes. The Trend Seeker issued a new “Buy” signal on April 9. Since then, the stock has gained 9.17%.
Barchart Technical Indicators for EMCOR
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
EMCOR scored an all-time high of $875 on April 23.
- EMCOR has a Weighted Alpha of +107.39.
- EME has a 100% “Buy” opinion from Barchart.
- The stock has gained 126.90% over the past 52 weeks.
- EMCOR has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $871.52 with a 50-day moving average of $767.59.
- EME has made 11 new highs and gained 17.04% over the past month.
- Relative Strength Index (RSI) is at 72.42.
- There’s a technical support level around $845.51.
Don’t Forget the Fundamentals
- $37.32 billion market capitalization.
- 32.37x price-earnings ratio.
- 0.19% dividend yield.
- Analysts project revenue to grow 6.78% this year and another 7.05% next year.
- Earnings are estimated to increase 9.19% this year and an additional 11.04% next year.
Analyst and Investor Sentiment on EMCOR
- The Wall Street analysts followed by Barchart give the stock 6 “Strong Buy” and 4 “Hold” opinions with price targets between $750 and $945.
- Value Line rates the stock “Above Average" with 3–5-year price targets between $665 and $1,000.
- CFRA’s MarketScope rates the stock a “Strong Buy.”
- Morningstar thinks the stock is 32% overvalued with a fair value of $630.21.
- 11,840 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- Short interest is only 1.75% of the float with 1.99 days to cover the float.
The Bottom Line on EMCOR
When you see “a leading provider of mechanical and electrical construction, industrial and energy infrastructure, as well as building services” in a company’s description, this smacks of data centers. Just like in a gold rush, it wasn’t the miners who made the fortunes, it was the people who sold them the picks, shovels, tents, and supplies. If you consider data centers as the modern-day Gold Rush, then the companies who build and design them will profit.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
