Most Investors Have Never Heard of This Industrial Stock. That's About to Change.

Many stocks have benefited from the generative artificial intelligence (AI) revolution, not just the "Magnificent Seven" or tech stocks in general. Companies across many other industries have also benefited greatly from the growth bonanza driven by this revolutionary technology.

A prime example of this is EMCOR Group (NYSE: EME). With a $37.3 billion market cap, EMCOR is a fairly large company, but it is hardly a household name. However, this is about to change. Even as shares have surged, the AI data center build-out boom remains in its early stages. This leaves this industrial stock well-positioned to keep winning, and for more investors to take notice.

Image source: Getty Images.

EMCOR Group at a glance

Based in Norwalk, Connecticut, EMCOR Group is a provider of construction, engineering, and property management services. Since its formation in 1994, the company has grown into one of the largest names in the space. EMCOR achieved this scale in large part due to the aggressive acquisition of smaller competitors.

That said, the main driver of growth lately hasn't come from roll-up acquisitions or other financial engineering strategies. Rather, chalk it up to the AI data center boom. Between 2023 and 2025, revenues zoomed from $12.6 billion to nearly $17 billion, thanks to robust demand for electrical, mechanical, and other construction work. During this time frame, earnings more than doubled, from $13.37 to $28.30 per share.

This growth wave has yet to slow down. During Q1 2026, EMCOR reported 19.7% year-over-year revenue growth, with quarterly earnings rising 30%. Alongside strong results, management also issued an upward revision to full-year 2026 guidance, raising its revenue guidance from between $17.8 billion and $18.5 billion to between $18.5 billion and $19.3 billion, with earnings per share (EPS) guidance raised from between $27.25 and $29.25 per share to $28.25 to $29.75 per share.

Better yet, some sell-side analysts anticipate an even stronger 2026 performance. For 2026, the high end of analyst forecasts calls for revenue of $19.2 billion and earnings of over $30 per share.

Why this AI infrastructure stock has more room to run

Even as the market has yet to fully catch on, EMCOR's AI growth has already driven the stock higher. Trading at around $175 per share in mid-2023, the stock now trades at around $845 per share. With this big run-up, EMCOR has also climbed toward a premium valuation.

At current prices, the stock trades for around 28.5 times forward earnings. While reasonable compared to other construction stocks, shares may seem at risk of a de-rating due to slowing earnings growth. However, taking a closer look, don't assume this is imminent.

For instance, consider EMCOR's reported earnings growth last quarter, plus the fact that it beat consensus by $0.94 per share last quarter, the latest forecasts appear too conservative. Comps could prove tough in the coming quarters, but as long as growth merely normalizes rather than screeches to a halt, shares will likely sustain a premium valuation and continue to rise in tandem with earnings growth.

AI data center growth could slow, but EMCOR could still maintain elevated growth. Data center construction and electrical work today translates into maintenance and property management work for EMCOR tomorrow. As high growth continues, and the broad market becomes aware of EMCOR's "AI growth" bona fides, shares could reach even loftier price levels. Given this opportunity, it's prime time to make this AI stock a long-term holding and build a position on any major weakness.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EMCOR Group. The Motley Fool has a disclosure policy.