2024-03-27 11:18:19 ET
Summary
- EMCOR Group Inc. is a specialty contractor benefiting from the AI boom, cryptocurrency mining, and increased clean technology manufacturing.
- The company has shown strong momentum with a 63.7% return in the year-to-date and 121% over the past 12 months.
- EMCOR is well-positioned to benefit from the trillion-dollar Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).
A couple of weeks ago, I came across an interesting article that discussed how the AI boom, cryptocurrency mining and increased clean technology manufacturing are pushing U.S. power supply to its limit. This trifecta is currently powering the Fourth Industrial Revolution and constitutes some of the biggest secular megatrends of our time. The piece got me thinking about the vulnerabilities of the U.S. power grid and the staggering sums it would take for improvements and replacements to the grid’s thousands of power-generation units, sub-stations and AC transmission lines. Naturally, as an equity researcher, I began delving deeper into the sectors, companies and stocks that stand to benefit the most from these trends. That’s when giant specialty contractor EMCOR Group Inc. ( EME ) appeared on my radar thanks to the stock’s eye-popping 63.7% return in the year-to-date and 121% over the past 12 months....
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For further details see:
EMCOR Is Seriously Overbought, But Still Good For The Long Haul