What Makes EMCOR (EME) an Investment Choice?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% 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 third-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 electrical and mechanical construction and facilities, building, and industrial services. The one-month return of EMCOR Group, Inc. (NYSE:EME) was 2.00%, and its shares gained 28.71% of their value over the last 52 weeks. On December 12, 2025, EMCOR Group, Inc. (NYSE:EME) stock closed at $623.65 per share, with a market capitalization of $27.918 billion.

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

"Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. EMCOR Group, Inc. (NYSE:EME) provides electrical, mechanical, construction, and facilities services. Strong data center growth was the key driver for their US Electrical segment and lifted the stock by 21%. Management increased full year earnings guidance. EMCOR is well positioned to win an outsized portion of large data center and manufacturing projects, given its scale, leading virtual design, and construction capabilities, as well as pre-fabrication assets."

EMCOR Group, Inc. (NYSE:EME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the third quarter, which was 51 in the previous quarter. EMCOR Group, Inc. (NYSE:EME) reported consolidated revenues of $4.3 billion in Q3 2025, representing an increase of 16.4% from Q3 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 to buy and sell from top analyst calls. In addition, please check out our hedge fund investor letters Q3 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.