Emc stock price forecast drivers#

Industrial Services unit - which focuses on downstream, petrochemical, and oil and gas refining - has been facing maximum COVID-related woes over time. This indicates efficiency in using shareholders’ funds and its ability to generate profit with minimum capital usage. This compares favorably with ROE of 12.9% for the industry it belongs to. The company’s ROE currently stands at 18.5%. Superior ROEĮMCOR has a very strong return on equity (ROE) that is indicative of growth potential. EMCOR raised its revenue guidance to nearly $9.5 billion for 2021 from the prior range of $9.2-$9.4 billion. The company now expects earnings per share within $6.65-$7.05 versus 6.35-$6.75 projected earlier. Upbeat Viewīacked by strong first and second-quarter results, the company lifted its view for 2021. Despite being impacted by the COVID-19 pandemic, the company sustains its stability on robust performance, accretive acquisitions and demand for services. Construction segment’s operating margins improved 20 basis points (bps) year over year to 8.4%, driven by broad-based business growth across trade offerings, end-market sectors and a vast geographic footprint. Throughout the second quarter of 2021, it experienced strong year-over-year growth in all sectors served, except hospitality.įor second-quarter 2021, the U.S. EMCOR continues to see demand for electrical mechanical systems, both in new construction and retrofit projects. The company’s domestic construction segments experienced strong project growth in second-quarter 2021, with total Remaining Performance Obligations or RPOs having increased $301 million since Jun 30, 2020. Story continues Robust Demand For ServicesĮMCOR’s domestic construction segments have been registering gains, given solid demand for its services. The company plans to acquire more such companies in the future. These buyouts strengthened its overall results by adding new markets, opportunities and capabilities. EMCOR’s second-quarter 2021 results include $53.8 million of revenues attributable to businesses acquired. The third buyout is that of a company that provides mobile mechanical services across North Texas, whose results of operations have been included under the U.S. EMCOR took over one company that provides mechanical services within the Southern region of the United States and another company that provides electrical construction services to a broad array of customers in the Midwestern region of the United States.

During the first six months of 2021, the company spent $57 million on the acquisition of three companies. Inorganic DriveĮMCOR has a penchant for acquisitions and strategic alliances for bolstering inorganic growth as well as expanding market share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Emc stock price forecast drivers#

Let’s delve deeper into the major growth drivers of this Zacks Rank #3 (Hold) company.