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Bull of the Day: Comfort Systems USA (FIX)

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Comfort Systems USA (FIX - Free Report) , a current Zacks Rank #1 (Strong Buy), offers comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services. Drilling a bit deeper, the company's offerings also include chillers, cooling towers, and other critical components in data centers.

The stock boasts a Zacks Rank #1 (Strong Buy), with the revisions trend for its current fiscal year considerably bullish, up 40% over the last year and suggesting 30% year-over-year growth.

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Image Source: Zacks Investment Research

In addition to favorable earnings estimate revisions, the stock resides in the Zacks Building Products – Air Conditioner & Heating industry, currently ranked in the top 5% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.

Comfort Systems USA

Robust quarterly results have regularly fueled shares over the last year, gaining 140% and widely outperforming the S&P 500. Regarding its latest release, FIX posted an 18% beat relative to the Zacks Consensus EPS estimate and continued its streak of recent beats.

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Image Source: Zacks Investment Research

And Comfort Systems remains optimistic about its growth trajectory, underpinned by 27% year-over-year backlog growth in FY23. Current consensus expectations allude to 30% earnings growth in FY24 and an additional 13% in FY25, with the stock carrying a Style Score of ‘A’ for Growth.

Investors can also reap a passive income stream from FIX shares, currently yielding a modest 0.3% annually. While the current yield is a tad underwhelming, the company’s 22% five-year annualized dividend growth rate helps bridge the gap in a big way.

Zacks Investment Research
Image Source: Zacks Investment Research

Concerning the valuation picture, shares presently trade at a 25.7X forward 12-month earnings multiple, above the five-year median by a fair margin but reflective of investors’ positive growth expectations. The stock carries a Style Score of ‘C’ for Value.

Keep an eye out for the company’s upcoming release expected on April 24th, as consensus expectations suggest 50% earnings growth.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Comfort Systems USA (FIX - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).

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