11 Best Engineering Stocks to Invest in Now

4. EMCOR Group Inc. (NYSE:EME)

Number of Hedge Fund Holders: 55

EMCOR Group Inc. (NYSE:EME) delivers specialized engineering and construction services. With a focus on electrical and mechanical systems, it facilitates maintenance and industrial solutions across the US and the UK. It designs, installs, and maintains complex systems like power generation, HVAC, and communication networks.

The US Mechanical Construction segment at EMCOR Group Inc. (NYSE:EME) generated revenues of $1.66 billion in Q4 2024, which marked a 12.8% year-over-year increase. This growth was driven by the strong demand in the network and communications sector (data centers), high-tech manufacturing, and healthcare. The segment also benefited from increased service work, which reflected the expansion of its mechanical and fire protection maintenance base.

The company is confident in the underlying demand drivers of the manufacturing and industrial sectors, which is supported by a 7% year-over-year increase in manufacturing RPOs (Remaining Performance Obligations). EMCOR Group Inc. (NYSE:EME) is positioned to capitalize on growing markets due to its expertise in complex mechanical and piping systems, VDC (Virtual Design and Construction), and prefabrication capabilities.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding EMCOR Group Inc. (NYSE:EME) in its first quarter 2024 investor letter:

Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. EMCOR Group, Inc. (NYSE:EME) supplies electrical, mechanical, and facilities services. The company’s strong results fueled a 62% increase in the stock price. Highlights from the quarter included improved margins and a record level of backlog. We trimmed the position on this strength.