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Bull of the Day: Comfort Systems USA (FIX)

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Comfort Systems USA (FIX - Free Report) provides comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services. The company provides chillers, cooling towers, and other critical components found within data centers.

The stock boasts a Zacks Rank #1 (Strong Buy), with analysts positively revising their EPS expectations nearly across the board over recent months.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to favorable earnings estimate revisions, the stock resides in the Zacks Building Products – Air Conditioner and Heating industry, which is currently ranked in the top 17% of all Zacks industries. Let’s take a closer look at how the stock presently stacks up.

Quiet AI Play

FIX shares represent a nice opportunity to obtain exposure to the AI infrastructure buildout thanks to its products utilized in data centers, which reflect a massive tailwind for the near and long-term picture for the stock.

Some in the market have caught on to the company’s favorable stance, with shares up 38% over the last year and widely outperforming relative to the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s quarterly results have regularly been robust over recent periods, with FIX enjoying supercharged growth. Sales of $1.8 billion and adjusted EPS of $4.75 in its latest release crushed our consensus estimates, reflecting growth rates of 20% and 75%, respectively.

As shown below, FIX’s sales growth has been stellar, underpinned by a growing backlog. FIX’s backlog at the end of its latest period totaled a sizable $6.9 billion, well above the $5.9 billion print in the same period last year.

Zacks Investment Research
Image Source: Zacks Investment Research

And for those with an appetite for income, FIX shares have you covered, currently yielding a respectable 0.3% annually. While the current yield may not be steep, the company’s 33% five-year annualized dividend growth rate helps bridge the gap nicely, underpinning its commitment to increasingly rewarding shareholders.

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) is currently a Zack Rank #1 (Strong Buy).


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