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Here's Why Comfort Systems (FIX) Fell More Than Broader Market

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Comfort Systems (FIX - Free Report) closed the most recent trading day at $762.91, moving -1.84% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.33%.

Shares of the heating, ventilation and air conditioning company witnessed a gain of 13.63% over the previous month, beating the performance of the Construction sector with its gain of 0.5%, and the S&P 500's gain of 2.57%.

The investment community will be paying close attention to the earnings performance of Comfort Systems in its upcoming release. The company is predicted to post an EPS of $5.94, indicating a 45.23% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.09 billion, indicating a 15.51% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.25 per share and revenue of $8.12 billion. These totals would mark changes of +52.4% and +15.51%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Comfort Systems. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.97% higher. At present, Comfort Systems boasts a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Comfort Systems is at present trading with a Forward P/E ratio of 34.93. This denotes a premium relative to the industry average Forward P/E of 29.65.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 29% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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