Group 1 - Emcor Group (EME) is highlighted as a growth stock to watch, currently forming a flat base [1] - The company is set to reach a significant milestone on September 22, as it is featured on the IBD Big Cap 20 and the IBD Leaderboard watchlist [1] - Emcor Group has earned an 85 RS rating, indicating strong market leadership [4] Group 2 - AppLovin and Robinhood are set to join the S&P 500 index before the market opens on September 22, which has led to a surge in their stock prices [2]

Group 1 - The iShares Core S&P Mid-Cap ETF (IJH) experienced an outflow of approximately $164.4 million, representing a 0.2% decrease in shares outstanding week over week, from 1,531,750,000 to 1,529,250,000 [1] - Among the largest components of IJH, EMCOR Group, Inc. (EME) decreased by about 1.6%, Comfort Systems USA Inc. (FIX) fell by about 0.7%, while PURE Storage Inc. (PSTG) increased by about 1% [1] - The 52-week range for IJH is between $50.15 and $68.33, with the last trade recorded at $65.13 [2] Group 2 - ETFs trade like stocks, with investors buying and selling "units" that can be created or destroyed based on demand, impacting the underlying holdings [3] - Monitoring week-over-week changes in shares outstanding helps identify ETFs with significant inflows or outflows, which can affect the individual components held within those ETFs [3]

Core Viewpoint - EMCOR Group, Inc. has reported strong second quarter results for 2025, leading to a significant increase in its stock price target by analysts [2][3]. Financial Performance - For Q2 2025, EMCOR reported revenue of $4.30 billion, reflecting a year-over-year increase of 17.4% [2]. - The company revised its revenue guidance for 2025, adjusting the lower end from $16.1 billion - $16.9 billion to $16.4 billion - $16.9 billion [2]. Management Commentary - Tony Guzzi, Chairman, President, and CEO, highlighted that the company's Remaining Performance Obligations are at an all-time high, indicating a strong pipeline and positive outlook for the remainder of the year [3]. Analyst Reactions - Following the strong Q2 results, many analysts raised their price targets for EMCOR, with DA Davidson increasing its target from $515 to $725 [3]. - Jim Cramer noted that the stock has received less hype, suggesting potential for future growth [3]. Company Overview - EMCOR Group, Inc. is a leader in mechanical and electrical construction, industrial and energy infrastructure, and building services, providing critical infrastructure services to various businesses and public sector clients [4].

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Group 1: Lincoln Electric - Lincoln Electric is a full-line manufacturer and reseller of welding and cutting products, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Lincoln Electric's current year earnings increased by 6.5% over the last 60 days [1] - Lincoln Electric's shares gained 17.4% over the last three months, outperforming the S&P 500's gain of 9.4% [2] - The company possesses a Momentum Score of A [2] Group 2: Scorpio Tankers - Scorpio Tankers is a provider of marine transportation of petroleum products worldwide, with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Scorpio Tankers' current year earnings increased by 8.3% over the last 60 days [2] - Scorpio Tankers' shares gained 42.9% over the last three months, significantly outperforming the S&P 500's gain of 9.5% [3] - The company possesses a Momentum Score of A [3] Group 3: EMCOR Group - EMCOR Group is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services for diverse businesses, with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for EMCOR Group's current year earnings increased by 6.4% over the last 60 days [3] - EMCOR's shares gained 29.5% over the last three months, compared to the S&P 500's gain of 9.4% [4] - The company possesses a Momentum Score of B [4]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Emcor Group (EME), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendation Summary - Emcor Group has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from 10 brokerage firms, with 60% (six out of ten) being Strong Buy [2][4]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10]. Zacks Rank Summary - The Zacks Rank for Emcor Group is 1 (Strong Buy), reflecting a 0.5% increase in the Zacks Consensus Estimate for the current year to $25.11, indicating growing analyst optimism about the company's earnings prospects [13][14]. - The Zacks Rank is based on earnings estimate revisions, which have a strong correlation with near-term stock price movements, and is updated more frequently than the ABR [11][12]. Comparison of ABR and Zacks Rank - The ABR is calculated solely from brokerage recommendations and can be misleading due to analysts' biases, while the Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more timely and reliable indicator of stock performance [9][10]. - The Zacks Rank maintains a balance among its five ranks, ensuring that it reflects the latest trends in earnings estimates, unlike the potentially outdated ABR [12].

Market Environment - The current market environment is challenging for investors, characterized by falling bond yields and mixed economic data, with the benchmark 10-year U.S. Treasury yield declining to 4.019% and the 30-year yield reaching 4.651% [2] - There is a 95% probability of a quarter-point reduction in interest rates at the Federal Reserve's upcoming meeting on September 16-17, indicating market anticipation for a potential interest rate cut [2] Economic Indicators - The Consumer Price Index in August increased by 0.4%, which is double the growth compared to the previous month, while annual inflation remains at 2.9% [3] - Weekly jobless claims reached 263,000, the highest level since October 2021, raising concerns about the labor market [3] - Analysts suggest these indicators support at least a 25-basis-point cut, with a possibility of a 50-point move [3] Jim Cramer's Stock Picks - The article presents 12 stock picks from Jim Cramer, host of CNBC's Mad Money, aimed at helping investors make informed decisions under current macroeconomic conditions [4] - The selection criteria for the stocks include recent mentions by Jim Cramer and the number of hedge funds holding these stocks as of Q2 2025 [6] Phillips 66 (NYSE:PSX) - Phillips 66 is included in the stock picks, with 47 hedge funds holding stakes in the company, indicating strong institutional interest [8][11] - The company reported a record-high refining utilization rate of 98% and an adjusted EBITDA of approximately $1 billion in its Midstream segment, moving towards a $4.5 billion annual EBITDA target by 2027 [9] - Phillips 66 is looking to purchase liquefied natural gas from the U.S. through long-term contracts, with Piper Sandler raising the stock's price target from $144 to $154 [10] Casey's General Stores, Inc. (NASDAQ:CASY) - Casey's General Stores also has 47 hedge funds invested, reflecting strong confidence in its growth prospects [13][15] - The company reported Q1 2026 revenue of $4.57 billion, exceeding analyst expectations of $4.47 billion, with EPS beating consensus estimates by 15% [14] - Following a strong quarter, analysts raised the price target from $560 to $580, with Jim Cramer calling it his 'absolute favorite under-the-radar growth stock' [15] EMCOR Group, Inc. (NYSE:EME) - EMCOR Group has 51 hedge funds holding its stock, and its price target has been significantly raised after reporting Q2 2025 revenue of $4.30 billion, a 17.4% year-over-year increase [17][18] - The company revised its revenue guidance for 2025 upwards, indicating a strong outlook supported by high remaining performance obligations [19] - Analysts have raised the price target for EMCOR Group, with DA Davidson increasing it from $515 to $725, suggesting potential growth ahead [19]

Company Overview - EMCOR is a skilled trades company that employs plumbers, pipe fitters, electricians, sprinkler fitters, HVAC technicians, and operating engineers, indicating a strong workforce in the trades sector [2] - The company focuses on building, fixing, retrofitting, and ongoing maintenance of systems, showcasing its comprehensive service offerings [3] Business Segments - EMCOR's operations are divided into two main segments: mechanical and electrical, which account for approximately 70% to 75% of the company's overall business [3] - Within the Building Services segment, mechanical services contribute about 70% to 75% of the revenues, highlighting the significance of this area in the company's revenue structure [3]

Company Overview - EMCOR is a skilled trades company that employs plumbers, pipe fitters, electricians, sprinkler fitters, HVAC technicians, and operating engineers, indicating a strong workforce in the construction and maintenance sectors [2] - The company focuses on building, fixing, retrofitting, and ongoing maintenance of systems, showcasing its comprehensive service offerings in the industry [3] Business Segments - EMCOR's operations are divided into two main segments: mechanical and electrical, which account for approximately 70% to 75% of the company's overall business [3] - Within the Building Services segment, mechanical services contribute about 70% to 75% of the revenues, highlighting the significance of this area in the company's financial structure [3]

Summary of EMCOR Conference Call Company Overview - **Company Name**: EMCOR - **Industry**: Skilled trades and construction services - **Key Segments**: - Mechanical and electrical services (70-75% of revenue) - Building services (75% of building services revenue) - Industrial services (focused on oil and gas) - Facility services in the UK - **Revenue Projection**: Expected to generate between $16.3 billion and $16.9 billion in revenue for the year [15] Core Business Insights - **Business Model**: EMCOR operates as a contractor, adapting to customer demand rather than creating it [6] - **Workforce**: The company employs skilled tradespeople including plumbers, electricians, and HVAC technicians [4] - **Safety Standards**: EMCOR emphasizes safety, achieving a Total Recordable Incident Rate (TRIRR) of less than one, which is significantly better than industry standards [9] Growth Drivers - **Data Centers**: Significant growth in data center construction, with revenues more than doubling from previous years [23] - **Reshoring**: The company has invested in expanding its footprint in the Southeast and Midwest, anticipating growth from reshoring trends [18][21] - **Healthcare and Manufacturing**: Healthcare revenues are up 40% year-to-date, and traditional manufacturing revenues have increased by over 30% year-over-year [23][21] Financial Performance - **Revenue Growth**: EMCOR has experienced a compound annual growth rate (CAGR) of approximately 9.5% to 10% over the past five years, while headcount growth has only been 3% to 3.5% [51] - **Capital Allocation**: The company maintains a balanced approach to capital allocation, with a focus on reinvestment, M&A, and shareholder returns [57] Workforce Strategy - **Training and Development**: EMCOR invests heavily in training its workforce, with a focus on leadership development and safety [53][55] - **Retention Rates**: Retention of key leadership is over 85%, indicating strong employee satisfaction and loyalty [55] Regulatory Environment - **Impact of Legislation**: The company adapts to changing regulatory environments, benefiting from favorable conditions under Democratic administrations, such as the CHIPS Act [31][30] - **Union Workforce**: EMCOR's construction workforce is primarily unionized, which aids in recruitment and training [31] M&A Strategy - **Recent Acquisition**: EMCOR acquired Miller Electric, enhancing its presence in the Southeast and aligning with its strategic focus on electrical and mechanical services [58] - **Acquisition Criteria**: The company prioritizes firms that can execute well in the field and share similar values, avoiding those with poor reputations [62][64] Conclusion - **Market Position**: EMCOR is well-positioned to capitalize on growth in data centers, reshoring, and healthcare, while maintaining a disciplined approach to capital allocation and workforce development [16][57]