12 Best Electrical Infrastructure Stocks to Buy According to Analysts

10. Emcor Group Inc. (NYSE:EME)

Average Analyst Upside: 8.89%

Number of Hedge Fund Holders: 40

Emcor Group Inc. (NYSE:EME) is a leader in mechanical and electrical construction, industrial and energy infrastructure, and building services, offering solutions such as electrical and mechanical construction, energy management, and facility maintenance. The company has thrived this year, fueled by the AI data center boom and its strong connections with hyperscale data center customers, domestic semiconductor companies, and clean energy component manufacturers.

In Q3 2024, Emcor Group Inc. (NYSE:EME) reported record-breaking revenues of $3.7 billion, marking a 15.3% increase year-over-year. Operating income surged 54.7% to $363.5 million, while diluted earnings per share rose sharply to $5.80. Additionally, the company reached a significant milestone with Remaining Performance Obligations (RPOs) hitting $9.8 billion, reflecting a 13.4% growth compared to the previous year. Emcor’s growth has been supported by high demand in sectors like data centers, high-tech manufacturing, and healthcare, alongside strategic investments in Virtual Design and Construction (VDC) to boost productivity and safety. However, U.S. Building Services revenue declined by 2.5% due to non-renewed contracts, while U.K. Building Services saw a drop in operating income due to a less favorable project mix, leading to reduced operating margins. Despite these challenges, the company anticipates 2024 revenues of at least $14.5 billion and diluted EPS between $20.50 and $21.

Wall Street analysts have issued 12-month price targets for Emcor Group Inc. (NYSE:EME), with an average target of $520 and a high forecast of $600. This average price target implies an 8.89% upside from the current trading price of $477.20.

As of the end of Q3 2024, 40 hedge funds tracked by Insider Monkey held positions in Emcor Group Inc. (NYSE:EME), down from 45 in the previous quarter. The combined value of these stakes exceeds $1.35 billion.