Is This the Best Time to Add Everus Construction Group (ECG) to Your Portfolio?

Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell 2500 Value Index, in the second quarter. The underperformance was primarily driven by stock selection, while the allocation effect had a small positive impact. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Riverwater Sustainable Value Strategy highlighted stocks such as Everus Construction Group, Inc. (NYSE:ECG). Everus Construction Group, Inc. (NYSE:ECG) is a US-based contracting services provider. The one-month return of Everus Construction Group, Inc. (NYSE:ECG) was 4.64%, and YTD its shares gained 12.81% of their value. On September 05, 2025, Everus Construction Group, Inc. (NYSE:ECG) stock closed at $74.17 per share, with a market capitalization of $3.783 billion.

Riverwater Sustainable Value Strategy stated the following regarding Everus Construction Group, Inc. (NYSE:ECG) in its second quarter 2025 investor letter:

Everus Construction Group, Inc. (NYSE:ECG) was our top performer, contributing over 150 basis points. We added to the position on April 7th as markets were imploding. It was fortuitous timing considering we missed the market bottom by less than one trading day. The stock had been gapping down day-by-day and we felt that their domestic backlog was fairly insulated from any onerous tariff levies. Trading at less than 13x our estimate of forward earnings with a solid balance sheet and a history of free cash flow generation made it palatable to buy as the economic outlook dimmed. We were rewarded quickly as the stock reverted back to where it traded when the year began. We go into more detail below in our deep dive.

Everus represents the type of opportunity we seek: a quality company trading at a significant discount due to temporary market conditions. ECG is an engineering and construction company focused on Electrical & Mechanical (E&M) and Transmission & Distribution (T&D) markets…” (Click here to read the full text)

Everus Construction Group, Inc. (NYSE:ECG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Everus Construction Group, Inc. (NYSE:ECG) at the end of the second quarter, which was 29 in the previous quarter. Everus Construction Group, Inc. (NYSE:ECG) reported second-quarter net sales of $921.5 million, marking a 31% increase from Q2 2024. While we acknowledge the risk and potential Everus Construction Group, Inc. (NYSE:ECG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Everus Construction Group, Inc. (NYSE:ECG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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In another article, we covered Everus Construction Group, Inc. (NYSE:ECG) and shared Loomis Sayles Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.