Jim Cramer on EMCOR: "A Company That's Perfectly on Theme for the Current Moment"

EMCOR Group, Inc. (NYSE:EME) is one of the stocks Jim Cramer talked about. During the episode, Cramer called it a “very good stock,” as he remarked:

“What I’ll tell you is that when I looked at EMCOR’s business, I saw a company that’s perfectly on theme for the current moment. The company’s part engineering construction firm, like a Jacobs, or like an AECOM, because it’s involved in the design process, but it also sells and services its own equipment, like Cummins, Dover, or Eaton… all of which have been doing very well thanks to the wave of data center construction.

Same goes for EMCOR stock that’s really tripled since the end of 2023. Will you look at this, from some outfit that you probably never heard of? Money. While the overall non-residential construction market’s been choppy, thanks to higher interest rates in recent years, EMCOR continues to put up strong growth, thanks in large part to exposure to the data center, the best growth story out there. And the analysts expect EMCOR to keep putting up excellent numbers. Some of that’s the data center. Some of it’s from the reshoring of semiconductor fabs and pharmaceutical plants driven by the president’s tariffs. Basically, if you expect a lot of factories to be built in the United States, well, then I’ll tell you, you should be buying EMCOR. Stock currently sells for a meager 23 times next year’s earnings estimates.

So, I’m not concerned about a wave of profit-taking here like… [in] AppLovin or Robin. People were clamoring for those two to join the S&P, but no one cared about EMCOR. This was just an addition that came completely out of nowhere. You got my permission to buy it right here. It’s a very good stock.”

EMCOR Group, Inc. (NYSE:EME) provides electrical and mechanical construction, industrial, and facilities services, covering design, installation, operation, and maintenance for a wide range of systems. The company also offers facility management, energy solutions, and specialized services for infrastructure, buildings, and industrial projects.

While we acknowledge the potential of 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.

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