• EMCOR (EME) is showing strong technical momentum, hitting a new all-time high on July 15.
• The stock has an 88% technical “Buy” signal via Barchart.
• EME stock is trading above key moving averages, with significant price appreciation since Trend Seeker issued a “Buy” in May.
• EMCOR has solid fundamentals, but its shares are considered volatile and speculative. 

Today’s Featured Stock:

Valued at $24.6 billion, EMCOR (EME) is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses. The company serves commercial, industrial, utility and institutional clients. One aspect of its business is supporting companies in building, powering, and servicing their data centers. EMCOR says it help makes “hyper-scale data centers possible.”

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. EME checks those boxes. Since the Trend Seeker signaled a buy on May 1, the stock has gained 33.27%.

EME Price vs. Daily Moving Averages:

Barchart Technical Indicators for EMCOR:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

EMCOR shares hit a new all-time high on July 15, touching $562.77 in intraday trading.

• EME has an 88% technical “Buy” signal.
• The stock recently traded at $549.76, above its 50-day moving average of $490.56.
• EMCOR has a Weighted Alpha of +54.45.
• The stock has gained 41.13% over the past year.
• EME has its Trend Seeker “Buy” signal intact.
• EMCOR is trading above its 20, 50 and 100-day moving averages.
• The stock made 14 new highs and gained 13.55% in the last month.
• Relative Strength Index is at 70.84%.
• The technical support level is $543.42.

Don’t Forget the Fundamentals:

• $24.6 billion market cap.
• Trailing price-earnings ratio of 24.45x.
• Revenue is projected to grow 13.05% this year and another 5.76% next year.
• Earnings are estimated to increase 10.50% this year and increase an additional 8.26% next year.

Analyst and Investor Sentiment on EMCOR:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish, but some major advisory sites aren’t.

• The Wall Street analysts tracked by Barchart issued six “Strong Buy,” one “Moderate Buy,” and one “Hold” opinions on the stock.
• Value Line gives the company its highest rating.
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is 17% overvalued.
• 8,840 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

EMCOR currently has momentum and is hitting new highs.

I caution that EME is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.