ZACKS·2026-01-21 15:06Core Insights - Ongoing public and private investment is driving demand in the U.S. construction and infrastructure sectors, benefiting companies like EMCOR Group, Inc. and Tutor Perini Corporation [1] - EMCOR focuses on diversified electrical, mechanical, and building services, while Tutor Perini specializes in large-scale civil and complex building projects [2] - Easing financial conditions are creating a supportive environment for infrastructure investment and project financing, making both companies comparable in terms of fundamentals [3] EMCOR Group, Inc. Insights - EMCOR is experiencing strong project demand across various sectors, including data centers, healthcare, and transportation, supported by effective labor planning and digital construction tools [4] - The company's remaining performance obligations reached $12.61 billion in Q3, up from $9.79 billion year-over-year, indicating broad-based growth and revenue visibility extending into 2026 [5] - Despite challenges such as labor availability and competitive bidding, EMCOR expects steady demand to support long-term growth and margin stability [6][7] Tutor Perini Corporation Insights - Tutor Perini is benefiting from robust project wins in its Civil and Building segments, with a record backlog of $21.6 billion, a 54% year-over-year increase [8][10] - The company is well-positioned due to elevated infrastructure spending and large institutional development activity, driving execution across various projects [9] - However, Tutor Perini faces risks related to large, complex projects that can introduce earnings volatility and higher share-based compensation expenses [11] Stock Performance & Valuation - EMCOR's share price performance has lagged behind Tutor Perini and the Zacks Building Products - Heavy Construction industry over the past six months [13] - EMCOR is trading at a premium valuation compared to Tutor Perini based on forward 12-month price-to-earnings (P/E) ratios [15] - The Zacks Consensus Estimate indicates EMCOR's 2026 revenues and EPS will grow by 5.9% and 8.6% respectively, while Tutor Perini's estimates show 12.5% revenue growth and 17.7% EPS growth [17][19] Investment Outlook - Both companies are positioned to benefit from sustained U.S. infrastructure spending, but their fundamentals suggest different investment profiles [20] - EMCOR's diversified business mix and strong backlog visibility make it resilient, while Tutor Perini's record backlog offers greater growth potential but with higher execution risks [20]