Robust Results Boosted EMCOR Group (EME) in Q2

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equities saw double-digit returns as global economic activity expanded. Growth indexes outperformed the value counterparts in the quarter. The global risk factors like Beta, Momentum, and Residual Volatility were highly rewarded, while Earnings Quality, Value, and Growth were detracted. Further, in U.S. small and mid-cap growth indexes, better returns came from stocks with either high valuations, negative earnings, or low returns on equity. Against this backdrop, the strategy returned 11.79% (gross) and 11.56% (net) compared to an 18.20% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as EMCOR Group, Inc. (NYSE:EME). Headquartered in Norwalk, Connecticut, EMCOR Group, Inc. (NYSE:EME) offers construction and facilities, building, and industrial services.  The one-month return of EMCOR Group, Inc. (NYSE:EME) was 4.04%, and its shares gained 63.30% of their value over the last 52 weeks. On September 10, 2025, EMCOR Group, Inc. (NYSE:EME) stock closed at $634.40 per share, with a market capitalization of $28.398 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding EMCOR Group, Inc. (NYSE:EME) in its second quarter 2025 investor letter:

"Contributing a 45% return was EMCOR Group, Inc. (NYSE:EME), which provides construction and operational services for mechanical and electrical systems to a broad range of commercial, industrial, utility, and institutional customers. EMCOR reported revenues and earnings that bested expectations with a record high level of remaining performance obligations (outstanding and unbilled work for existing customers) along with a healthy pipeline of new projects."

EMCOR Group, Inc. (NYSE:EME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the second quarter, which was 49 in the previous quarter. EMCOR Group, Inc. (NYSE:EME) reported consolidated revenues of $4.3 billion in Q2 2025, representing an increase of $637.5 million or 17.4% from Q2 2024. While we acknowledge the potential of EMCOR Group, Inc. (NYSE:EME) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered EMCOR Group, Inc. (NYSE:EME) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.