Core Viewpoint - EMCOR Group, Inc. and MasTec, Inc. are both prominent players in the infrastructure engineering and construction services sector, benefiting from increased demand for large-scale infrastructure projects driven by public and private investments in data centers, renewable energy, and 5G telecommunications [1][2]. Company Performance EMCOR Group, Inc. (EME) - EMCOR reported record results for 2024, with revenue increasing by 15.8% to $14.57 billion and net income rising by 59% to $1.01 billion, resulting in earnings per share (EPS) of $21.52, a 61.7% increase from 2023 [5]. - The company's Remaining Performance Obligations (RPOs) reached an all-time high of $10.1 billion, up 14.2% year over year, indicating strong revenue visibility into 2025 [3][5]. - EMCOR's operating margin for Q4 2024 was 10.3%, an increase of 190 basis points from the previous year, reflecting effective project execution and cost controls [5]. - The company has consistently beaten earnings estimates, averaging a 29% upside surprise over the last four quarters [6]. - EMCOR's strategic acquisition of Miller Electric for $865 million is expected to enhance its presence in high-growth sectors and contribute approximately $805 million in annual revenues [7]. - As of early 2025, EMCOR held a cash position of $1.34 billion and increased its share repurchase authorization by $500 million, demonstrating financial strength and flexibility [8]. MasTec, Inc. (MTZ) - MasTec experienced a turnaround in 2024, reporting revenues of $12.3 billion, a modest increase from $12.0 billion in 2023, and a net income of $199 million [9]. - The adjusted EPS for MasTec in 2024 was approximately $3.95, more than double the previous year's result, indicating a strong recovery in profitability [9]. - MasTec's adjusted EBITDA margins improved to 8% by Q4 2024, up 110 basis points from the previous year, supported by operational improvements and successful integration of acquisitions [11]. - The company ended 2024 with a record 18-month backlog of $14.3 billion, reflecting a 15% increase year over year, which provides strong revenue visibility and growth potential for 2025 [11]. - MasTec has also consistently exceeded earnings estimates, with an average EPS surprise of 31.6% over the last four quarters [12]. Market Performance - EMCOR shares increased by approximately 110% in 2024 but have since declined by 15.3% year to date due to broader market volatility and concerns over margin sustainability [14]. - MasTec's stock gained around 80% in 2024 but has also pulled back by about 13% year to date, influenced by macroeconomic concerns and the company's investment phase [15]. - Both companies have outperformed the Zacks Building Products - Heavy Construction industry in the current year [15]. Valuation and Growth Estimates - EMCOR's forward 12-month price-to-earnings (P/E) ratio is about 16X, in line with the industry average, while MasTec's is closer to 20X, suggesting that EMCOR may offer better value [21]. - EMCOR's trailing 12-month return on equity (ROE) is 36.4%, significantly higher than the industry average of 15.5% and MasTec's 11.2% [25]. - Analysts have become increasingly optimistic about both companies' earnings potential, with upward revisions in EPS estimates for 2025 [18]. Conclusion - EMCOR is positioned as a more attractive short-term investment due to its balanced fundamental profile, superior execution, and strong returns, while MasTec, despite its high growth potential, carries a higher risk/reward profile due to elevated stock valuation [26][27].

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F based on their value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming [3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3][4] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [5] Group 3 - The VGM Score combines the three Style Scores to identify stocks with the best value, growth forecast, and momentum, serving as a strong indicator alongside the Zacks Rank [6] - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 rank should also have high Style Scores for better upside potential [9][10] - The direction of earnings estimate revisions is crucial when selecting stocks, as a stock with a low rank may still have high Style Scores but a declining earnings outlook [10] Group 5 - KBR, Inc. is a global engineering, construction, and services firm with operations in over 29 countries and customers in more than 80 countries [11] - KBR holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, indicating a solid position [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 13.09, making it attractive for value investors [12] - KBR's earnings estimate for fiscal 2025 has been revised upwards by two analysts, with the Zacks Consensus Estimate increasing by $0.01 to $3.84 per share, and it has an average earnings surprise of 6.5% [12]

Group 1 - Zacks Premium offers various tools to help investors make informed decisions, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores rate stocks based on value, growth, and momentum, providing complementary indicators to the Zacks Rank [3][4] - Stocks are rated from A to F, with A indicating a higher likelihood of outperforming the market [4] Group 2 - The Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales, appealing to value investors [4] - The Growth Score focuses on a company's financial health and future outlook, assessing projected earnings and sales [5] - The Momentum Score helps investors capitalize on price trends, using factors like price changes and earnings estimate shifts [6] Group 3 - The VGM Score combines the three Style Scores, helping investors find stocks with the best value, growth, and momentum [7] - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios [8][10] - Stocks with a 1 (Strong Buy) rank have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [9] Group 4 - KBR, Inc. is a global engineering and construction firm with operations in over 29 countries and customers in more than 80 countries [12] - KBR holds a 3 (Hold) Zacks Rank and has a VGM Score of B, indicating potential for growth [12] - The company is forecasted to achieve 15% year-over-year earnings growth, with upward revisions in earnings estimates for fiscal 2025 [13]