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Comfort Systems (FIX) Falls More Steeply Than Broader Market: What Investors Need to Know

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Comfort Systems (FIX - Free Report) closed the most recent trading day at $831.89, moving -1.67% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.76%.

The heating, ventilation and air conditioning company's shares have seen an increase of 8.18% over the last month, surpassing the Construction sector's loss of 2.69% and the S&P 500's gain of 1.14%.

Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. The company is predicted to post an EPS of $6.02, indicating a 47.19% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.11 billion, up 16.54% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $22.36 per share and revenue of $8.15 billion, which would represent changes of +53.15% and +15.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Comfort Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.48% higher. Comfort Systems is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Comfort Systems's current valuation metrics, including its Forward P/E ratio of 37.84. Its industry sports an average Forward P/E of 29.52, so one might conclude that Comfort Systems is trading at a premium comparatively.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 34% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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