The Weight-Loss Drug Boom Hits Its Middle Age: What the GLP-1 Economy Means for Your Portfolio

SPEAKER_1 (0:01)

This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

Luke Guerrero (0:16)

Good afternoon, fellow investors, and welcome to the Tuesday, September 22nd, 26th edition of InvestTalk. Hopefully, things go smoother than that intro did. As always, we got a great show for you planned today, including a great focus point, important stories, and answers to your finance and investment questions. Additionally, at the top of the show, I did want to give you a bit of a quick reminder for you to mark your calendars for October 24th, it is a Saturday, and you are invited to join the KPP team, as well as guest experts for our first in-person retirement summit. This is a special event and it is free of charge, but seating is limited, so pre-register now at investtalk.com.

With that being said, before we talk about today's market performance and run down our show topics, why don't we tackle this caller question now?

Jeremy (1:16)

Hey, Justin and Luke. Jeremy from New Jersey here, longtime listener. I just want to say real quick, you guys actually inspired me to become a financial advisor, which is awesome and I love it.

So just wanted to get your insights on a ticker, EME, Emcor group, and it looks like an interesting company. You know, I kind of want to pile money into it, so I just want to hear your thoughts.

Luke Guerrero (1:41)

Jeremy, I'm glad to hear that you hopefully not just through us, but through other experience as well, have found a love for investing that you've been able to transition to a career. So it's great to hear that. We're so happy to hear that we were a small part of that journey. That being said, let's take a look at ticker EME, which is Emcor.

And Emcor is actually a name we hold for clients in one of our strategies. It is a mechanical and electrical construction services company. So think about electrical systems, mechanical systems, HVACs, something that's certainly been doing very well recently, plumbing and fire protection for data centers as well. And also it has a bit of a diversity. They got industrial plants, they got healthcare facilities and government buildings. Most recently, they had a record quarter across nearly every single metric. Revenue was at 5.15 billion, that was a quarterly record is up 20 percent. Year-over-year, that beat the consensus of 476, 4.76 billion by nearly 400 billion. Deluded earnings per share at 906, that beat the 730 estimate. Net income at 403, that beat the 302 estimate.

So pretty impressive stuff. And a lot of this is organic growth. Once you adjusted for some of the acquisitions they made, it was pretty broad based across segments. It was around 18 to 20 percent growth is what I'm seeing here. And their balance sheet quarter end had 924 million dollars cash on hand. And at the same time, for guidance, they raised guidance on revenue, they raised guidance on diluted EPS, they raised guidance on operating margin. So all in all, pretty solid quarter and decent upgrades. So understandably, the market did in fact appreciate that.

Year to date, the company is up 23.65 percent. It's up 15.35 percent over the past 52 weeks. And up about 12.93 percent, or sorry, apologies, opposite direction. I meant to say in spite of that, it's actually down 12.93 percent over the past three months. In a lot of ways, coming back down from the strong momentum that it's had since 2022 I mean, from 2022 into mid-2026, about June, this thing was just on a tear. Now it seems to have found a little bit of resistance, momentum weakening a bit, but it's put itself into a position where its valuation is now around its average. And so for me, coming off of a record quarter, that's something that is certainly very attractive to somebody who might want to put money into this thing, especially for the first time.

Now, I do want to say, right, something that I didn't mention is this record backlog. I just, we like this company. I can't really put it any other way. We hold it for clients and it's now at a bit more of a reasonable valuation than it has been in quite some time. Thanks for the call. Looks like we got a live call. Let's go to Chris from Maine, we've got a question on MDT.

Chris (4:56)

Yeah, hey Luke, thanks for taking my call. As always, really appreciate everything you guys do.

Yeah, a comment about Medtronic and their mini-med exchange that they're offering at a 7% discount. I know you guys did hold MDT in some of your accounts. I was just curious what you guys are considering doing with that offer.