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Comfort Systems (FIX) Beats Stock Market Upswing: What Investors Need to Know

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In the latest close session, Comfort Systems (FIX - Free Report) was up +1.41% at $546.63. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.

The heating, ventilation and air conditioning company's stock has climbed by 8.81% in the past month, exceeding the Construction sector's gain of 4.6% and the S&P 500's gain of 4.51%.

Analysts and investors alike will be keeping a close eye on the performance of Comfort Systems in its upcoming earnings disclosure. In that report, analysts expect Comfort Systems to post earnings of $4.68 per share. This would mark year-over-year growth of 25.13%. In the meantime, our current consensus estimate forecasts the revenue to be $1.95 billion, indicating a 7.86% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.28 per share and revenue of $7.72 billion. These totals would mark changes of +32.05% and +9.87%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Comfort Systems. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Comfort Systems is carrying a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Comfort Systems is currently exchanging hands at a Forward P/E ratio of 27.95. For comparison, its industry has an average Forward P/E of 30.68, which means Comfort Systems is trading at a discount to the group.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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