EMCOR Group (EME)

(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.

Building 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.

This 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 

Has held this for a very long time.

He particularly likes the infrastructure space, and this name is involved with that.

Is up 36% this year, thanks to growth in data centres. Trades at only 23x 2026 PE. Will join the S&P this month.

Involved in data centres and the infrastucture. Has a lower PE than APH, but the stock has moved a lot. A good company.

He owns EME instead of Quanta Services. On a 5-year chart, PWR has outperformed. But on a 1-year chart, EME is ahead. At 28x earnings, the multiple on PWR is about 50% higher than its normalized range, so it's not as good a value today. He'd switch into EME. EME has better profitability metrics, EPS revisions are better, PE is 20x earnings.