EMCOR Group (NYSE: EME) plans, installs, operates and maintains the systems that create facility environments. These include installations for power generation, power distribution, lighting, security, communications, plumbing, waste treatment, heating, ventilation, refrigeration and air-conditioning. The firm also provides facilities management and maintenance support. It serves commercial, industrial and institutional clients such as Bristol-Myers Squibb (NYSE: BMY) and Wachovia Corporation (NYSE: WB). Johnson Controls (NYSE: JCI) is a major competitor.

The Street was surprised last week, when EMCOR guided FY08 EPS from $2.08-$2.28 to $2.22-$2.42 and FY08 revenues from $6.3-$6.5 billion to $6.8-$7.0 billion. Analysts had been looking for $2.31 and $6.76 billion. The CEO cited "solid order activity" and a "strong contract backlog" for the favorable view.

The news kept EME shares cycling through a positive four-month trading channel. The price is currently consolidating at the base of that channel, suggesting the potential for a rise back toward the top. Correspondence of the stock's 50-day moving average to the base of the channel backs the rebound notion.

Brokers recommend the issue with three "strong buys", one "buy" and three "holds". Analysts expect a 15% average annual growth rate, through the next five years. The EME P/E ratio (13.12), PEG ratio (0.87), Price to Sales ratio (0.30), Price to Book ratio (1.99), Price to Cash Flow ratio (10.22), Price to Free Cash Flow ratio (7.50), Sales Growth rate (29.16%), EPS Growth rate (144.44%) and Return on Investment (12.58%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $18.25 and $38.69. A stop-loss of $24.75 looks good here. Note that the firm is next expected to release quarterly results in late July.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.