Comfort Systems USA

Companies highlighted in this weekly wrap include Comfort Systems USA, Inc. ( FIX - Snapshot Report), Church & Dwight Co., Inc. (CHD - Snapshot Report), Shenandoah Telecommunications Co. (SHEN - Snapshot Report), Allied World Assurance Company Holdings Ltd. (AWH - Snapshot Report) and Perrigo Co. (PRGO - Snapshot Report).

Comfort Systems USA, Inc. ( FIX - Snapshot Report) traded ahead of the Dow Jones ($DJI), S&P 500 (SPX) and NASDAQ (COMP) during the past year. The company offers solid fundamentals, including very low levels of debt as evidenced by a debt-to-capital ratio of just 4%.

Recent Events

In mid-November, the company increased its stock repurchase program to increase the shares authorized and remaining as available to purchase back up to 1,000,000 shares. Comfort Systems can acquire up to 964,316 additional shares of its outstanding common stock.

Quarterly Results Reflect Growth

In late October, the company reported third-quarter results. Earnings per share of 34 cents came in above the previous year’s 28 cents. Revenues jumped 22% on a year-over-year basis.

Management stated that backlog remained at fundamentally high levels at the end of the quarter, and we continued to experience improved cash flow.

Solid Income

Comfort Systems also declared a quarterly dividend of $0.045 per share, which was paid out on December 19, 2008. The company’s dividend yield is in line with the industry at 1.7%.

Read our October 15 commentary.

Last Week's Growth and Income Zacks Rank Buy Stocks

Church & Dwight Co., Inc. (CHD - Snapshot Report) has seen steady analyst forecasts for 2008 earnings of $2.85 per share. Estimates of $3.26 per share for 2009 have also been stable and represent 14% growth over 2008 projections. Read the full analysis on CHD.

Shenandoah Telecommunications Co. (SHEN - Snapshot Report) is a solid Growth and Income pick. The company offers a dividend yield of 1.1%, while its industry peers pay virtually no income. The company’s earnings per share are expected to grow by 14% over the next 3 – 5 years, compared to the industry average of 10%. Read the full analysis on SHEN.

Allied World Assurance Company Holdings Ltd. (AWH - Snapshot Report) is seeing higher earnings estimates ahead of its fourth-quarter report, which is scheduled for release on February 5. Analysts are calling for year 2008 earnings of $8.01 per share, up from last month’s $7.91. Read the full analysis on AWH.

Perrigo Co. (PRGO - Snapshot Report) has a return on equity (ROE) of 17%, more than the double the industry’s average of 8%. The company’s earnings per share are expected to grow by 21% over the next 3 – 5 years, while the industry average expectation stands at 15%. Read the full analysis on PRGO.