Is EMCOR Group (EME) a Resilient Investment Option? - InvestingChannel

Is EMCOR Group (EME) a Resilient Investment Option?

Renaissance Investment Management, an investment management company, released its “Small Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy returned 1.39% (net) compared to a 4.13% return for the Russell 2000 Growth Index and a 6.98% return for the S&P/Barra Small Cap 600 Growth. The strategy returned -20.41% in 2022 compared to indexes’ return of -26.36% and -21.08% respectively. Energy and Consumer Staples were the best-performing sectors in the quarter, while Health Care and Communication Services sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Small Cap Growth Strategy highlighted stocks like EMCOR Group, Inc. (NYSE:EME) in the fourth quarter 2022 investor letter. Headquartered in Norwalk, Connecticut, EMCOR Group, Inc. (NYSE:EME) offers electrical and mechanical construction and facilities services. On April 4, 2023, EMCOR Group, Inc. (NYSE:EME) stock closed at $158.70 per share. One-month return of EMCOR Group, Inc. (NYSE:EME) was -5.52%, and its shares gained 40.44% of their value over the last 52 weeks. EMCOR Group, Inc. (NYSE:EME) has a market capitalization of $7.568 billion.

Renaissance Small Cap Growth Strategy made the following comment about EMCOR Group, Inc. (NYSE:EME) in its Q4 2022 investor letter:

“A new position added during the quarter was EMCOR Group, Inc. (NYSE:EME), a leading provider in mechanical and electrical construction, industrial and energy infrastructure, and building services. The company is seeing solid revenue opportunities in data center and semiconductor fab construction along with continued re-shoring of supply chains. In addition, many enterprises are increasing their spending on energy efficiency upgrades which is driving an expansion in HVAC projects, and the oil and gas end markets are continuing to improve. The company’s backlog is at an all-time high of $7.1 billion, up 32% from 9/30/2021. We believe many of the current trends that are driving EMCOR’s business will remain strong in 2023, even in a potentially softer economic environment.”

Construction

EMCOR Group, Inc. (NYSE:EME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the fourth quarter which was 27 in the previous quarter.

We discussed EMCOR Group, Inc. (NYSE:EME) in another article and shared the list of biggest plumbing supply companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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