The Misfits: EMCOR Group (EME)

An AI winner in the construction industry?

Softened Construction, Wassily Wassilyevich Kandinsky, 1927, oil on canvas

I won’t pretend to have any insight or expertise in artificial intelligence. I have been suckered into a few tech trends that were much more sizzle than steak (do you remember 3D printing?).

At this point, artificial intelligence is hard to ignore. Even if it hasn’t deeply embedded itself into our daily lives, it is nudging its way in.

One of the elegant aspects of investing is that with enough time and effort, most individuals can find different ways to invest in key economic, cultural, and sociological trends. The key is being able to find companies within one’s sphere of competence that have a legitimate case to benefit from these trends.

So, while many people will be chasing big AI gains from the usual suspects (the magnificent seven semiconductor manufacturers), I think many companies could benefit if you dig deep enough. One such example is EMCOR (NYSE: EME).

Here’s a look at EMCOR’s unusual origin, how it became a market-crushing stock over the past 30 years, and why it could be one of those “artificial alpha” ways of investing in artificial intelligence.

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