Opinions Ernest Wong, Head of Research, Baskin Wealth Management
EMCOR GroupEMEBUYOct 28, 2026
Stock price when the opinion was issued
As of Oct 28, 2026. Market Open.
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Premium contentOur PAST TOP PICK with EME has triggered its stop at $695. To remain disciplined, we recommend covering the position at this time. When combined with previous guidance, this will result in a net investment loss of 14%.
Premium contentWe reiterate EME, a leader in data centre and other industrial development projects as a TOP PICK. We like that cash reserves are growing, while shares are aggressively bought back and debt is retired. It trades at 26x earnings and supports a robust 40% ROE. We recommend trailing up the stop (from $670) to $695, looking to achieve $980 -- upside potential of 18%. Yield 0.18%
(Analysts’ price target is $1033.29)
Had a really big move higher. Then over the course of June-July and the last couple of weeks, momentum areas of the market have really come under pressure. So it's broader momentum selling. Oversold, so he doesn't mind nibbling here.
Overall, concerned about the lower highs and lower lows. If it can clear ~$860-875, he'd add then.
Premium contentEME has operations involving electrical infrastructure, HVAC, energy and data centres. It trades at 24x earnings and supports a robust ROE of 40%. Recently reported earnings showed a all-time record quarterly revenue which grew 19%. Cash reserves are growing while debt is retired and shares aggressively bought back. We recommend setting a stop-loss at $670, looking to achieve $1033 -- upside potential over 30%. Yield 0.1%
(Analysts’ price target is $1033.29)
(Note the short timeframe.) Still a massive shortage of data centres. Strong backlog, so revenue stream is predictable. Pricing power is leading to margin improvement.
Nick Mersch, CFABuilding of data centres will grow 23% this year as tech companies race to build them. EME is in construction, specializing in mechenical and engineering systems (HVAC, plumbing). Revenues are up, $25 EPS and trading at 25x PE, a little high, but they outperform and buyback shares.
(Analysts’ price target is $775.20)Nick Mersch, CFAThis is essentially a construction company and has done very well over the past ten years. It has morphed into data centres but the overall infrastructure play is still very much in effect with much more spending needed from the US government, eg. airports. It continues to perform and has consistently outperformed consensus in the past 19 quarters. Trades at 23X earnings with revenue up 17% in the past year. It is in their small cap portfolio.
Buy 6 Hold 3 Sell 0
Gordon ReidHe particularly likes the infrastructure space, and this name is involved with that.
Gordon Reid
They've benefitted in recent years by proving engineering services to the data centre build. But there are fears that AI will disrupt engineering firms, but that fear is misguided. You will still need an engineering company to finish these projects. AI will make firms more efficient,