[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Say No To Trading [@SayNoToTrading](/creator/twitter/SayNoToTrading) on x 6263 followers Created: 2025-02-22 17:23:07 UTC Are data center buildout stocks like $EME Emcor Group, $STRL Sterling Infrastructure, $FIX Comfort Systems, and $POWL Powell Industries cheap after their selloffs this week? Maybe not. Many investors today weren’t investing XX years ago where it was a similar story playing out with names like $ACM AECOM, $FLR Fluor and similar. Same story, just not specific to data centers. It was for the construction and infrastructure boom leading up to the GFC. Using Fluor as example, take a look at EV/revenue chart below. I like to focus on EV/revenue (not PE or EBITDA) because margins in these types of highly cyclical industries are more mean reverting than any I know. So EV/revenue is good way to gauge how much money they would make under normalized earnings (pick your margin % and apply it). Today, names like $EME and $POWL may not look that expensive but remember we are at optimal margins right now. What if things revert? These are not $CTAS Cintas business models where renewal rates are 95%+ for decades and decades. For these companies, backlogs are often only 1-2 years out, yet you’re paying 18-25x earnings or more. I have read all the bullish cases on Seeking Alpha and elsewhere and keep coming back to same conclusion; these people weren’t investing XX years ago, so they can’t remember history rhymes. I did nibble a little of these Friday but I mean real tiny nibbles. Why? I find that owning a tiny bit of expensive, low conviction names can actually save you money in the long run, because it prevents FOMO. You don’t chase since you own a little. At least that’s how it works for me. I have owned $FIX for years though so that’s not new.  XXXXX engagements  **Related Topics** [flr](/topic/flr) [acm](/topic/acm) [$flr](/topic/$flr) [$acm](/topic/$acm) [playing](/topic/playing) [investment](/topic/investment) [stocks](/topic/stocks) [data center](/topic/data-center) [Post Link](https://x.com/SayNoToTrading/status/1893350821955608825)
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Say No To Trading @SayNoToTrading on x 6263 followers
Created: 2025-02-22 17:23:07 UTC
Are data center buildout stocks like $EME Emcor Group, $STRL Sterling Infrastructure, $FIX Comfort Systems, and $POWL Powell Industries cheap after their selloffs this week? Maybe not.
Many investors today weren’t investing XX years ago where it was a similar story playing out with names like $ACM AECOM, $FLR Fluor and similar. Same story, just not specific to data centers. It was for the construction and infrastructure boom leading up to the GFC.
Using Fluor as example, take a look at EV/revenue chart below. I like to focus on EV/revenue (not PE or EBITDA) because margins in these types of highly cyclical industries are more mean reverting than any I know. So EV/revenue is good way to gauge how much money they would make under normalized earnings (pick your margin % and apply it).
Today, names like $EME and $POWL may not look that expensive but remember we are at optimal margins right now. What if things revert?
These are not $CTAS Cintas business models where renewal rates are 95%+ for decades and decades. For these companies, backlogs are often only 1-2 years out, yet you’re paying 18-25x earnings or more.
I have read all the bullish cases on Seeking Alpha and elsewhere and keep coming back to same conclusion; these people weren’t investing XX years ago, so they can’t remember history rhymes.
I did nibble a little of these Friday but I mean real tiny nibbles. Why? I find that owning a tiny bit of expensive, low conviction names can actually save you money in the long run, because it prevents FOMO. You don’t chase since you own a little. At least that’s how it works for me. I have owned $FIX for years though so that’s not new.
XXXXX engagements
Related Topics flr acm $flr $acm playing investment stocks data center