EME · Emcor · Top AI ETF

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EMCOR Group, Inc. provides electrical and mechanical construction and facilities, building, and industrial services in the United States and the United Kingdom.

Close · 3M

+12.60%

Held by 0 AI ETFs

None of the tracked AI ETFs currently hold this name.

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals1

Win rate0% (0/1)

Avg buy return-10.85%

AIEQno longer held5 signals

AIEQ · Exit · 1d

Currently trading at $826.82, Emcor sits at 88% of its 52-week high, having achieved a 1-year return of +75.8% and a 90-day return of +16.7%. This significant price appreciation, coupled with a PER of 27.47 and PBR of 7.45, likely influenced AIEQ's IBM Watson NLP engine. The AI, processing daily news, filings, and social posts for sentiment alongside fundamentals, likely determined that the stock's relative attractiveness had diminished. Operating with a high-turnover, daily rebalancing mandate, the fund’s EquBot risk overlay then executed a full removal of the position on 2026-05-30, aligning with the updated daily ranking that indicated a shift away from this holding despite its revenue growth of 18.31% and ROE of 38.42%.

weight 0.590% → 0 (exited)·stock down 0.8% in the 30 days before

May 30·entry $830.95·now $811.53

-2.34%

since May 30

AIEQ · Weight decrease · 3d

The consecutive decrease in AIEQ's allocation to Emcor, moving from 0.6500% to 0.5900% over several trading days in May, reflects a measured, stepped reduction rather than an abrupt sell-off. This gradual cadence is characteristic of a fund managed by IBM Watson NLP, which daily re-ranks thousands of US equities, adjusting positions based on continuous ingestion of market data, news, and sentiment. EME's current price at $848.91, near 90% of its 52-week high after an 80.5% one-year return, likely presents a scenario where the AI's internal models, despite the company’s 18.31% revenue growth and 38.42% ROE, perceive a moderating opportunity relative to other holdings. Consequently, the daily rebalancing mechanism systematically trims exposure as the stock's perceived daily "edge"—derived from both fundamental and sentiment signals—slightly diminishes at these elevated valuation levels, where the PER stands at 28.37 and PBR at 7.45.

weight 0.640% → 0.590% (-0.050 pp)·stock down 2.8% in the 30 days before

May 22·entry $848.91·now $811.53

-4.40%

since May 22

AIEQ · Weight decrease · 2d

EME’s 38.42% Return on Equity and 18.31% Revenue Growth initially aligned with the fundamental criteria for AIEQ's broad market portfolio, which considers fundamentals alongside sentiment. However, the company’s PER of 28.37 and PBR of 7.45 pointed to an elevated valuation. AIEQ's daily rebalancing, driven by IBM Watson's NLP ingesting vast data across US equities, began reducing EME’s weight on May 19 and 20, decreasing it from 0.64% to 0.60%. This shift coincided with EME trading at 90% of its 52-week high, following a 90-day return of 29.1%, suggesting the AI's risk overlay detected a change in EME’s sentiment or price-based risk at these levels.

weight 0.640% → 0.600% (-0.040 pp)·stock up 1.8% in the 30 days before

May 20·entry $853.15·now $811.53

-4.88%

since May 20

AIEQ · Weight decrease · 2d

The AI ETF likely reduced EME's weight due to its significantly high PER and PBR, suggesting the stock became overvalued despite strong revenue growth and ROE. This consecutive decrease indicates the AI is systematically de-risking, emphasizing that retail investors should balance growth potential with valuation to avoid holding overextended positions.

weight 0.660% → 0.640% (-0.020 pp)·stock up 15.1% in the 30 days before

May 10·entry $931.50·now $811.53

-12.88%

since May 10

AIEQ · New entry · 1d

The AI ETF likely initiated a new position in EME due to its outstanding 39.13% ROE and strong 16.62% revenue growth, signaling superior profitability and robust business expansion despite elevated valuation multiples. This suggests AI models are keenly identifying high-quality growth companies even if they trade at a premium. For retail investors, this highlights the importance of analyzing a company's fundamental strength, including efficiency and growth metrics, beyond just traditional valuation multiples.

weight 0 → 0.650% (new)·stock up 19.0% in the 30 days before

May 3·entry $910.26·now $811.53Fresh

-10.85%

since May 3

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 31

The recent actions by AIEQ, showing a clear trend of decreasing weight and eventual exit from Emcor, align with the framework's "Fail" verdict. This suggests the AI's algorithm also identifies reasons to avoid or divest from the company, potentially due to the high valuation or financial health concerns flagged by the value investing framework.

Circle of CompetenceThe company's focus on specialized mechanical, electrical, and facility services suggests predictable demand and unit economics, allowing for reasonable long-term cash flow projections.
Economic MoatEmcor benefits from a durable economic moat through high switching costs for integrated facility services and specialized expertise, alongside potential scale advantages in project execution.
ManagementInsufficient data is provided to evaluate management's candor, capital allocation discipline, or personal alignment of interests.
Financial HealthThe exceptionally high EV/EBITDA of 33.22 raises significant concerns about potential undue leverage or a fragile financial position, despite the strong reported ROE.
Margin of SafetyValuation metrics including a PER of 27.47, PBR of 7.45, and a very high EV/EBITDA indicate the current price offers no discernible margin of safety.

Emcor appears to operate within a predictable industry and possesses a strong economic moat, satisfying early criteria of the value investing framework. However, a lack of information on management and clear red flags regarding financial health and valuation, particularly the extraordinarily high EV/EBITDA and other multiples, prevent it from qualifying as an attractive investment. The current price offers no margin of safety, leading to an overall "Fail" verdict.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.