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Is Comfort Systems (FIX) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Comfort Systems (FIX - Free Report) . FIX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 22.14. This compares to its industry's average Forward P/E of 32.40. Over the past 52 weeks, FIX's Forward P/E has been as high as 22.14 and as low as 8.59, with a median of 16.77.

We should also highlight that FIX has a P/B ratio of 3.48. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.33. Within the past 52 weeks, FIX's P/B has been as high as 3.48 and as low as 1.81, with a median of 2.77.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FIX has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.83.

Finally, investors should note that FIX has a P/CF ratio of 11.51. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 28.14. Over the past 52 weeks, FIX's P/CF has been as high as 11.51 and as low as 6.55, with a median of 9.38.

Value investors will likely look at more than just these metrics, but the above data helps show that Comfort Systems is likely undervalued currently. And when considering the strength of its earnings outlook, FIX sticks out at as one of the market's strongest value stocks.


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