Track market-moving stories before they get noisy

Comfort Systems USA, Inc. (FIX) Q3 2026 Earnings Call October 23, 2026 11:00 AM EDT

Company Participants

Julie Shaeff - Senior VP & Chief Accounting Officer
Brian Lane - CEO & Director
William George - Executive VP & CFO
Trent McKenna - President

Conference Call Participants

Adam Thalhimer - Thompson, Davis & Company, Inc., Research Division
Adam Bubes - Goldman Sachs Group, Inc., Research Division
Sangita Jain - KeyBanc Capital Markets Inc., Research Division
Brent Thielman - Oppenheimer & Co. Inc., Research Division
Joshua Chan - UBS Investment Bank, Research Division
Timothy Mulrooney - William Blair & Company L.L.C., Research Division
Julio Romero - Sidoti & Company, LLC
Kurt Yinger - D.A. Davidson & Co., Research Division
Brian Brophy - Stifel, Nicolaus & Company, Incorporated, Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Comfort Systems USA Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Julie Shaeff, Chief Accounting Officer. Ma'am, please go ahead.

Julie Shaeff
Senior VP & Chief Accounting Officer

Thank you, Michelle. Good morning. Welcome to Comfort Systems USA's third quarter 2026 earnings call. Our comments today as well as our press releases contain forward-looking statements within the meaning of the applicable securities laws and regulations. What we will say today is based upon the current plans and expectations of Comfort Systems USA. Those plans and expectations include risks and uncertainties that might cause actual future activities and results of our operations to be materially different from those set forth in our comments. You can read a detailed listing and commentary concerning our specific risk factors in our most recent Form 10-K and Form 10-Q as well as in our press release covering these earnings. A slide presentation is provided as a companion to our remarks

3 Stocks Built for Higher Rates—And 2 That Could BreakComfort Systems USA NYSE: FIX reported sharply higher third-quarter results, supported by strong demand in construction activity, particularly from technology and industrial customers, and continued growth in its electrical and modular operations.

The company earned net income of $489 million, or $13.91 per share, for the third quarter of 2026, compared with $292 million, or $8.25 per share, a year earlier. Revenue increased 54% to $3.8 billion. Chief Executive Officer Brian Lane said the company’s mechanical business saw an “extraordinary increase” in activity and profitability, while the electrical segment delivered substantial organic growth.

Get Comfort Systems USA alerts:

Beyond Big Tech: 3 Non-Tech Earnings Winners to Watch“Construction is driving most of our results, but service revenue and profit also grew by double-digit percentages,” Lane said. Service revenue increased 13% from the prior year and represented 10% of total revenue, while construction accounted for 90%.

Backlog Reaches Record $17.8 Billion Comfort Systems ended the quarter with backlog of $17.8 billion, a record level and an increase of $8.4 billion, or 90%, from a year earlier. Backlog rose $3.8 billion sequentially, marking the company’s eighth consecutive quarter of sequential backlog growth.

Forget Chips: These 3 Stocks Are Building the AI Data Center BoomPresident Trent McKenna said bookings were especially strong in the technology sector across both traditional construction and modular operations. Industrial customers accounted for 76% of revenue during the first nine months of 2026, while technology-related work represented 59% of revenue, up from 42% in the prior-year period.

Management said the duration of backlog has increased as the company takes on larger projects. Lane estimated that the current backlog generally extends about 18 to 24 months, compared with roughly nine months a decade ago.

Company executives said labor availability remains a key constraint on industry capacity, but said Comfort Systems evaluates staffing needs before accepting work. Lane said the company remains disciplined in selecting projects and will not take on work it cannot execute at a high level.

Margins Remain Strong Amid Project Mix Effects Gross profit rose to $934 million from $607 million a year earlier, while the gross margin remained at 24.8%. Mechanical segment gross margin improved to 25.1% from 24.3%. Electrical segment gross margin was 24.3%, down from 26.2% a year earlier, though management noted that the prior-year electrical margin benefited from discrete gains, including a customer bankruptcy emergence, that added approximately 1.8 percentage points.

Chief Financial Officer Bill George said margins were affected by a higher proportion of equipment and materials in the cost mix, which increased revenue but carried lower margins than labor-intensive work. The company also cited higher acquisition-related purchase accounting adjustments and the early stage of several large projects.

“Our gross profit per hour worked continues to get better,” George said, adding that the company does not recognize all potential gains early in a project because it retains contingencies until work progresses further.

Operating income increased 65% to $625 million, and the operating margin improved to 16.6% from 15.5%. EBITDA rose 61% to $668 million, with trailing 12-month EBITDA reaching about $2.3 billion. The company said it expects 2027 gross margins to remain within the strong ranges achieved in recent quarters.

Modular Capacity and Customer Focus Modular operations represented 17% of year-to-date revenue. Comfort Systems expects to have more than 4 million square feet of modular production space by the end of 2026 and about 6 million square feet of capacity by the end of 2027.

McKenna said the planned expansion is based on existing programmatic customer relationships rather than new arrangements with Frontier Lab or colocation providers. The company is building products for those newer customers but has not yet reached agreements it considers programmatic.

George said that when evaluating new modular relationships, the company considers the customer’s commitment level, payment terms, financial strength, and whether the products and dedicated capacity could be used for other customers. He said Comfort Systems has remained focused on its two large existing programmatic customers, which have made multiyear volume commitments.

Cash Flow, Capital Spending and Leadership Transition Third-quarter free cash flow totaled $806 million, bringing year-to-date cash flow to roughly $2 billion. The company said cash flow benefited from favorable payment terms and collections from large technology customers, as well as $166 million of income tax payments deferred into the fourth quarter.

Comfort Systems invested more than $100 million in capital expenditures during the quarter to expand prefabrication facilities for its traditional construction business, in addition to ongoing modular investments. It expects full-year capital expenditures to equal 4% to 5% of revenue and anticipates elevated spending through the first half of 2027.

The company repurchased shares during the quarter and has returned $349 million to shareholders year to date, retiring approximately 212,000 shares. It also raised its quarterly dividend by $0.10 to $1 per share.

Comfort Systems announced that George will retire following the company’s 2026 results, ending a 30-year tenure with the company. Julie Shaeff, currently chief accounting officer, will succeed him as CFO shortly after the results are reported. Lane said the company also acquired Boys Electrical of Melbourne, Florida, and NeoPod, a healthcare-focused modular company based in New Braunfels, Texas, on Aug. 1. The acquisitions are expected to contribute more than $100 million in annual revenue at favorable margins.

Management said it expects full-year same-store revenue growth in the mid-40% range for 2026 and same-store revenue growth in the mid-20% range for 2027, citing continued demand and a growing project pipeline.

About Comfort Systems USA (NYSE:FIX)Comfort Systems USA, Inc NYSE: FIX is a provider of mechanical and electrical contracting services for commercial, industrial, and institutional customers. The company designs, installs, maintains, repairs, and replaces heating, ventilation, air conditioning, and temperature-control systems, as well as plumbing, piping, electrical, and related building systems.

Its services support new construction, building renovations, facility upgrades, and ongoing maintenance. Comfort Systems USA also provides specialized services for data centers, manufacturing facilities, healthcare buildings, educational institutions, and other complex commercial and industrial projects.

Founded in 1997 and headquartered in Houston, Texas, the company operates through a network of regional contracting businesses serving customers across the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Comfort Systems USA Right Now?Before you consider Comfort Systems USA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Comfort Systems USA wasn't on the list.

While Comfort Systems USA currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

On its Q3 2026 earnings call, held on Oct. 23, 2026, Comfort Systems (FIX -9.48%) announced diluted net income of $13.91 per share as quarterly revenue surged 54% year over year. Surging demand from technology and industrial customers is pushing project commitments further into the future. That backlog gives the mechanical and electrical contractor unprecedented earnings visibility over the next two years.

Three things management said stand out.

1. Project Backlog Hits $17.8 Billion as Demand Extends Planning HorizonsIndustrial and technology clients are booking large projects early to secure scarce contractor capacity. These multiyear commitments extend project timelines by 18 to 24 months, locking in revenue visibility well into 2028.

Bookings were strong, and our backlog at the end of the quarter grew to a new high of $17.8 billion.
-- Brian E. Lane, Chief Executive Officer2. Modular Capacity Expands to 6 Million Square Feet for Tech CustomersOff-site modular construction reduces job-site labor requirements while speeding up project delivery for hyperscale data centers. Comfort Systems is expanding manufacturing capacity to meet guaranteed demand from long-standing technology partners.

Our modular operations continue to grow with our established customers and we are building products for new customers, including a frontier lab and colo providers.
-- Trent T. McKenna, President3. Longtime CFO Retires With Deep Finance Leadership in PlaceChief Financial Officer Bill George is retiring after 30 years with the business, having led financial strategy and acquisitions since the mid-2000s. Chief Accounting Officer Julie S. Shaeff steps into the CFO role to maintain continuity of execution.

Right down the line starting with Julie, we are stacked with unbelievable talent. In our financial area. And, honestly, the day after I leave this role, Comfort Systems will still have the best CFO in construction and the best finance department in construction.
-- Bill George, Chief Financial OfficerFIX Comfort Systems USA$1,158.11-$121.26 (-9.48%)

NYSE · As of 3:39 PM ET 10/23/26

Looking AheadTechnology facilities and industrial plants drive relentless demand for construction, and management was satisfied with the record backlog. Multiyear customer relationships, off-site prefabrication at scale, and nationwide access to labor give Comfort Systems a durable edge as management focuses on contract selectivity.

With solid bookings and great demand, we expect continuing growth and strong results for the remainder of 2026 and into 2027.
-- Brian E. Lane, Chief Executive OfficerDisciplined project pricing and cost execution keep profitability elevated across both mechanical and electrical segments.

We currently expect that 2027 gross profit margins are likely to continue in the strong ranges that we have achieved in average over recent quarters.
-- Bill George, Chief Financial OfficerThe Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.

Key Takeaways FIX's Q3 earnings surged 68.6% to $13.91 per share, while revenues jumped 53.7% to $3.77 billion.FIX's backlog soared 90% to $17.81 billion, with technology customers driving 60.8% of revenues.FIX shares fell over 6% after hours despite a 64.8% rise in operating income amid guidance and CFO concerns.
Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year. The quarterly performance reflected robust demand across technology-related projects, strong execution and continued expansion in construction activity. Backlog reached $17.81 billion, reinforcing management's confidence in sustained growth and profitability.

FIX shares dipped more than 6% in after-hours trading on Thursday, Oct. 22, 2026, following the release of its third-quarter 2026 results. The decline reflected concerns over the absence of forward guidance and the company's CFO transition.

The company announced that longtime chief financial officer Bill George will retire after the filing of its 2026 annual report, ending a 30-year tenure. Julie Shaeff, currently chief accounting officer, will succeed him.

FIX's Q3 Earnings & Revenue DiscussionThe company reported earnings per share of $13.91, which topped the Zacks Consensus Estimate of $12.71 by 9.4% and increased 68.6% from $8.25 reported in the year-ago quarter.

Revenues of $3.77 billion surpassed the consensus mark of $3.35 billion by 12.5% and rose 53.7% from $2.45 billion generated in the prior-year quarter. The improvement reflected strong demand, increased project activity and contributions from acquired businesses.

Comfort Systems Sees Robust Segment GrowthComfort Systems generated Mechanical segment (which accounted for 68.6% of total revenues in the quarter) revenues of $2.58 billion in the third quarter, up 42.7% from $1.81 billion in the prior-year quarter. The segment's operating income increased 63.2% to $469.6 million from $287.8 million a year ago.

The Electrical segment's revenues (which accounted for 31.4% of total revenues) surged 84.8% year over year to $1.18 billion from $640.5 million. Segment operating income climbed 60.4% to $173.6 million, supported by increased activity across electrical contracting operations.

Technology customers accounted for 60.8% of consolidated revenues compared with 45.8% a year ago. Manufacturing represented 16.8%, followed by healthcare at 6.3%, education at 4.6% and government at 3.7%.

New construction contributed 76.2% of quarterly revenues, up from 65.2% in the year-ago period. Existing building construction accounted for 14%, while service projects and service calls, maintenance and monitoring represented 5.1% and 4.7%, respectively.

FIX Backlog Surges on Sustained Project DemandBacklog as of Sept. 30, 2026, totaled $17.81 billion, increasing 26.7% from $14.06 billion at June 30, 2026, and jumping 90% from $9.38 billion reported a year ago.

On a same-store basis, backlog climbed to $17.39 billion from $9.38 billion in the prior-year period, highlighting substantial organic growth in the company's project pipeline.

Management attributed the strong order momentum to sustained demand and the company's execution capabilities. Approximately 65-75% of remaining construction performance obligations are expected to be recognized as revenues over the next 12 months, providing visibility into future business activity.

Comfort Systems Improves Operating ProfitabilityGross profit increased 53.7% to $934.5 million from $607.9 million a year ago. Gross margin remained stable at 24.8%, reflecting consistent profitability despite the significant expansion in revenues.

Selling, general and administrative expenses increased 36.8% to $314.2 million. However, SG&A expenses as a percentage of revenues improved to 8.3% from 9.4%, indicating better expense absorption as business volumes expanded.

Operating income surged 64.8% to $624.6 million from $378.9 million in the prior-year quarter. Operating margin expanded 110 basis points to 16.6%.

Adjusted EBITDA increased 61.4% to $667.9 million from $413.9 million. Adjusted EBITDA margin improved 80 basis points to 17.7%, reflecting stronger operating profitability.

FIX's Financial Position Remains StrongAs of Sept. 30, 2026, Comfort Systems had cash and cash equivalents of $2.16 billion, up from $981.9 million at 2025-end. Total debt declined to $49.6 million from $145.2 million, strengthening the company's financial flexibility.

During the quarter, net cash provided by operating activities increased 82.6% to $1.01 billion from $553.3 million a year earlier. Free cash flow rose to $805.6 million from $519 million, despite higher capital expenditures.

The company also paid dividends of 90 cents per share during the quarter, compared with 50 cents a year ago. Share repurchases totaled $340.9 million, reflecting continued shareholder returns alongside investments in business expansion.

Comfort Systems Remains Confident in Growth ProspectsComfort Systems' management maintained a positive outlook, supported by strong customer demand, an expanding project pipeline and consistent operating execution.

The company expects to sustain organic growth, high profitability and solid cash generation through the remainder of 2026 and into 2027. Management emphasized that continued demand and workforce capabilities position the business to capitalize on opportunities across its key markets.

Recent acquisitions also expanded the company's operating capabilities. During the third quarter, Comfort Systems acquired Boys Electrical Contractors in Florida and a Texas-based modular construction business, strengthening its presence across electrical services and customized building components.

FIX’s Zacks Rank & A Few Construction ReleasesComfort Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KB Home (KBH - Free Report) reported third-quarter fiscal 2026 earnings of $1.05 per share, beating the Zacks Consensus Estimate of 88 cents by 19.3%. Earnings declined 34.8% from $1.61 per share in the year-ago quarter.

KBH’s total revenues of $1.30 billion surpassed the consensus mark of $1.29 billion by 0.4% but dropped 20% year over year. Results reflected lower deliveries and continued pricing pressure, partly offset by progress in the company’s Built to Order model. BTO homes represented 74% of deliveries, supporting sequential improvement in housing gross margin.

Lennar Corporation (LEN - Free Report) reported weaker-than-expected third-quarter fiscal 2026 (ended Aug. 31) results. Adjusted earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.29 by 4.7% and fell 38.5% from $2.00 per share a year ago.

Lennar’s total revenues of $8.05 billion missed the consensus estimate of $8.33 billion by 3.4% and declined 8.6% year over year. Lower deliveries and home prices weighed on results amid affordability pressure. Inventory turn stood at 2.4 times.

United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.

United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected at $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Comfort Systems (FIX - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Comfort Systems is a member of the Construction sector. This group includes 90 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Comfort Systems is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FIX's full-year earnings has moved 6.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, FIX has moved about 37.1% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of -5.7% on a year-to-date basis. As we can see, Comfort Systems is performing better than its sector in the calendar year.

Another Construction stock, which has outperformed the sector so far this year, is Sterling Infrastructure (STRL - Free Report) . The stock has returned 21.8% year-to-date.

For Sterling Infrastructure, the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 9 individual stocks and currently sits at #104 in the Zacks Industry Rank. This group has gained an average of 5.1% so far this year, so FIX is performing better in this area.

In contrast, Sterling Infrastructure falls under the Engineering - R and D Services industry. Currently, this industry has 22 stocks and is ranked #195. Since the beginning of the year, the industry has moved -7.5%.

Investors with an interest in Construction stocks should continue to track Comfort Systems and Sterling Infrastructure. These stocks will be looking to continue their solid performance.

Comfort Systems (FIX - Free Report) came out with quarterly earnings of $13.91 per share, beating the Zacks Consensus Estimate of $12.71 per share. This compares to earnings of $8.25 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.44%. A quarter ago, it was expected that this heating, ventilation and air conditioning company would post earnings of $10.38 per share when it actually produced earnings of $12.53, delivering a surprise of +20.71%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Comfort Systems, which belongs to the Zacks Building Products - Air Conditioner and Heating industry, posted revenues of $3.77 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 12.45%. This compares to year-ago revenues of $2.45 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Comfort Systems shares have added about 50.1% since the beginning of the year versus the S&P 500's gain of 13.3%.

What's Next for Comfort Systems?While Comfort Systems has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Comfort Systems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $12.85 on $3.44 billion in revenues for the coming quarter and $48.40 on $12.93 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Air Conditioner and Heating is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Lennox International (LII - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 28.

This manufacturer of furnaces, air conditioners and other products is expected to post quarterly earnings of $7.18 per share in its upcoming report, which represents a year-over-year change of +2.9%. The consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level.

Lennox International's revenues are expected to be $1.57 billion, up 10% from the year-ago quarter.

HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX) (the “Company”) today reported results for the quarter ended September 30, 2026. For the quarter ended September 30, 2026, net income was $489.0 million, or $13.91 per diluted share, as compared to $291.6 million, or $8.25 per diluted share, for the quarter ended September 30, 2025. Revenue for the third quarter of 2026 was $3.77 billion compared to $2.45 billion in 2025. The Company reported operating cash flow of $1.01 billion in.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Comfort Systems (FIX - Free Report) Comfort Systems USA is a national provider of comprehensive mechanical and electrical contracting services serving commercial, industrial and institutional end markets across the United States. The company designs, builds, installs, maintains, repairs and replaces mechanical, electrical and plumbing systems, including HVAC, piping and controls, electrical systems, off-site construction, monitoring and fire protection. It was established in 1997 as a Delaware corporation and leases its executive and administrative offices in Houston, TX. As of Aug. 3, 2026, Comfort Systems reported 51 operating companies at 206 locations in 150 cities.

FIX is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. FIX has a Growth Style Score of A, forecasting year-over-year earnings growth of 67.6% for the current fiscal year.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $48.40 per share. FIX also boasts an average earnings surprise of +34.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIX should be on investors' short list.

On October 21, 2026, we delve into the DCF analysis for Comfort Systems USA Inc FIX , a company that has experienced significant price fluctuations recently, including a 14.1% drop over the past week and a 15.4% decline over the past month. Despite these short-term challenges, the stock has shown remarkable resilience with a year-to-date increase of 49.9% and a 67.3% rise over the past year.

DCF Earnings-based intrinsic value of $1178.59 vs current price of $1397.09 (margin of safety: -18.5%) DCF Free Cash Flow-based intrinsic value of $1739.24 (providing a second opinion) GF Score™ of 87/100, indicating a high level of reliability in the DCF inputs What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model for Comfort Systems USA Inc employs a two-stage valuation approach. In the first stage, we project significant earnings growth over the next ten years, followed by a more modest terminal growth phase. The assumptions used in this model are critical to understanding the resulting intrinsic value.

Parameter Value Current EPS (TTM, excl. non-recurring) $41.40 10-Year Growth Rate 33.4% 10-Year Treasury Rate 5.12% Discount Rate (ceil(Treasury) + 6%) 12% Terminal Growth Rate 4% In the growth phase (Years 1-10), we anticipate the EPS to grow at 33.4% annually, which is then discounted at a rate of 12%. In the terminal phase (Years 11-20), we assume a terminal growth rate of 4%, also discounted at 12%. The calculation summary is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.4%, discounted at 12% $507.68 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 12% $670.91 Intrinsic Value Growth + Terminal $1178.59 With the current price at $1397.09, the stock appears modestly overvalued, presenting a margin of safety of -18.5%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further analysis, you can access the FIX DCF Calculator.

What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the Free Cash Flow (FCF) DCF model indicates an intrinsic value of $1739.24. This suggests that the stock is modestly undervalued, with a margin of safety of 19.7%. The divergence between the earnings-based and FCF-based valuations highlights the tension in assessing Comfort Systems USA Inc's true worth.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc stands at $829.72, providing a third perspective on valuation. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. The differing valuations from the DCF models and GF Value™ indicate a lack of consensus, with GF Value™ suggesting a significant overvaluation compared to both DCF models. For more details, visit the GF Value™ page.

What Does FIX's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum, providing a comprehensive view of its overall quality. Comfort Systems USA Inc has a GF Score™ of 87/100, reflecting strong fundamentals. However, its predictability rank is low at 1/5 stars, indicating that the DCF model's reliability is compromised. Below is a summary of the GF Score™ metrics:

Metric Rating GF Score™ 87/100 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 9/10 For additional insights on FIX, you can visit the FIX stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth and discount rates. Stocks with low predictability ratings, like Comfort Systems USA Inc, tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we observe a notable disagreement. The earnings-based DCF suggests the stock is modestly overvalued, while the FCF-based model indicates it is modestly undervalued. The GF Value™ further complicates the picture, suggesting significant overvaluation. Additionally, it is noteworthy that 15 gurus currently hold FIX, with 9 increasing their positions and 5 trimming them in recent quarters, while insiders have sold $178.4M worth of shares over the past year. This mixed signal from guru ownership and insider activity adds another layer of caution for potential investors. For a deeper dive into the DCF analysis, check out the FIX DCF Calculator.

Frequently Asked Questions What is FIX's intrinsic value based on DCF?

[Answer: earnings-based $1178.59, FCF-based $1739.24]

Is FIX overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for FIX?

[Answer using predictability rank 1/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Comfort Systems' operating cash flow surged to $1.53 billion in the first half of 2026 from $164.5 million.Free cash flow rose to $1.24 billion despite higher spending, aided by advance payments and favorable terms.Capital expenditures reached $288.8 million, with full-year spending expected at approximately 5% of revenues. Comfort Systems USA, Inc. (FIX - Free Report) is generating strong cash flow as it invests in expanding the business and production capabilities. The company's ability to fund these investments through internal cash generation remains important as capital spending rises. Cash flow quality and the timing of customer payments also influence the financial flexibility available for future investments.

Operating cash flow reached $1.53 billion in the first half of 2026, compared with $164.5 million in the year-ago period. Free cash flow increased to $1.24 billion from $113.1 million, despite higher capital expenditures. Advance customer payments, favorable payment terms and project execution contributed to cash generation. The company's revenues also grew to $6.13 billion from $4 billion, reflecting higher business activity.

FIX's financial position improved during the first half. Cash and cash equivalents rose to $1.855 billion as of June 30, 2026, from $981.9 million at year-end 2025. Total debt declined to $54.1 million from $145.2 million over the same period. This provides greater financial flexibility as investment requirements increase.

First-half capital expenditures climbed to $288.8 million from $53.5 million a year earlier. The company is investing in production facilities and equipment to address customer demand. These investments are important as project activity increases and customers require additional capacity. Full-year capital expenditures are expected to reach approximately 5% of revenues, placing greater importance on cash generation from ongoing operations.

However, the sharp increase in free cash flow requires some caution. Advance payments on certain orders improved cash flow before the related costs were incurred. The timing of customer billings and payments, along with changes in operating liabilities, also influenced cash generation. These factors may vary across periods, making the first-half increase less indicative of future cash flow on its own.

Comfort Systems enters the second half with higher cash reserves and lower debt, providing room to fund investments without relying heavily on additional borrowing. The company's ability to convert strong demand and project earnings into cash, while managing higher investment needs, will remain important to its financial flexibility.

Comfort Systems and Its Competitive PositionComfort Systems USA competes with AAON, Inc. (AAON - Free Report) and Carrier Global Corporation (CARR - Free Report) in HVAC equipment, commercial building systems and data center-related markets. Both companies are investing in production capabilities and business growth, but the financial resources available to support these plans differ. Comparing cash generation, capital spending and balance-sheet metrics helps assess how each company is positioned to fund future investments.

AAON is investing in manufacturing capacity and operational improvements to support demand, particularly for data center cooling solutions. First-half operating cash flow improved to $55 million, compared with a $31 million cash outflow a year earlier. However, capital expenditures reached $102.6 million, while cash, cash equivalents and restricted cash totaled $12.7 million at the end of June 2026. Debt stood at $435 million and the leverage ratio improved to 1.48 from 1.77 at year-end 2025. AAON expects better working capital efficiency, higher productivity and improved profitability to support future cash generation. These improvements will be important as the company funds additional capacity and operational needs.

Carrier has greater cash generation available for investment and shareholder returns. The company generated $810 million in free cash flow in the second quarter of 2026. Carrier expects full-year capital expenditures of approximately $600 million, including higher spending related to a new U.S. facility. The company also plans $1.5 billion in share repurchases for 2026. Its investment strategy reflects strong demand for commercial HVAC and data center solutions, alongside efforts to expand production capacity. However, the expected increase in capital expenditures is projected to offset the benefit of higher earnings on full-year free cash flow. This makes investment spending and cash conversion important factors in assessing Carrier's financial flexibility.

1. Microsoft Short-Circuits IPO-Bound AI Play

Microsoft (MSFT +0.93%) just canceled a lease on an artificial intelligence (AI) data center in the U.K. because the building can’t get power until the 2030s. The Telegraph, which reported the development, says Microsoft was the anchor tenant for the site and it planned to lease thousands of Nvidia (NVDA +2.46%) chips. Wait until you find out who the landlord is.

A lesson for IPO investors: The landlord, Nscale, is a young British AI data center builder. It is looking to raise around $3 billion in an October initial public offering (IPO), reportedly at a valuation of up to $35 billion. Nscale counts Microsoft and Anthropic among its two major customers. Its largest customer alone (unnamed) pulled in 73% of revenue in fiscal year 2025. The canceled deal highlights one of the biggest risks of investing in AI IPOs that sell on backlog. You’re paying today for sales that don’t exist yet.This side of the AI industry stands to win the most: It doesn’t break the thesis for Microsoft, but proves yet again why AI demand alone cannot guarantee returns. That holds true for any hyperscaler. As AI workloads grow, power generation, electricity grids, and cooling are the biggest bottlenecks. The winners will be those that turn this AI build-out and power demand into profitable growth, not simply those that spend the most.2. Inflation Eating Your Lunch? Your Portfolio Can WaitU.S. stocks fell sharply last week, with the S&P 500 down 1.95% and the Nasdaq down 4.48%. Wednesday’s September Consumer Price Index (CPI) showed inflation at 3.7% from a year earlier, above the 3.6% economists expected. It was the last CPI reading before the Fed meets Oct. 27-28. Stock futures, early signals of the market’s open, are higher this morning on “buy the dip” sentiment. S&P 500 futures gained 0.6% as Nasdaq futures rose 1.2% in early trading.

Crude remains stubborn: Core inflation, which strips out food and energy, rose 2.6% year over year, up from 2.4% in August. Airfares, used cars, and medical care all climbed. That’s the part the Federal Reserve can’t wait out, because it doesn’t automatically ease when oil does. And, oil isn’t cooperating. Brent crude, the global benchmark, closed Friday at $109.86, its highest since May.Know your exposure, but stay the course: The Fed raised its target range to 3.75%-4% on Sept. 16, its first increase since 2023. Sticky core prices make a second hike likelier, and pricey growth stocks would feel it first. Corrections are part and parcel of owning stocks, and we’d never sell a business on one report. Stay focused on the fundamentals and your long-term investing goals.3. Fool Recs Take Center Stage This Earnings WeekA busy earnings week arrives as investors weigh last week’s sell-off. Several companies recommended across Fool services report this week. Here are some of the big ones:

Karooooo (KARO +2.33%), recommended by Team Hidden Gems, reports after Monday’s close. Subscriber growth and recurring revenue are two key metrics to watch.MSCI (MSCI -1.40%), another Team HG rec, reports before Tuesday’s open. Subscription run rate and client retention will be key.GE Aerospace (GE -0.47%) reports Tuesday morning, with commercial engine demand and aftermarket services in focus.Netflix (NFLX -1.23%) – a Stock Advisor Foundational Stock, recommended by Team Rule Breakers and Team Hidden Gems – also reports Tuesday. Advertising revenue and operating margins will be under the microscope.Meta Platforms (META -0.84%) posts earnings Wednesday, as investors watch AI spending plans.Tesla (TSLA +3.67%) updates us the same day. Vehicle margins and AI updates will be key factors to watch.CME Group (CME -0.14%) makes it three on the day. Trading volumes matter, since they tend to rise when markets get volatile. CME is an SA rec by Team Rule Breakers.Honeywell (HON -0.04%), a Team HG rec, kicks off Thursday results, offering a read on industrial demand.Comfort Systems USA (FIX +2.78%) reports the same day, with its data center construction backlog in focus.Bloom Energy (BE +3.67%) earnings are also on Thursday’s card, with fuel-cell demand from power-hungry AI facilities a key question.4. Cisco Reboots for AITeam Hidden Gems

Team Hidden Gems sees Cisco Systems (CSCO -0.01%) reaching $231.15 within five years, more than double today’s price of about $109. Our Hidden Gems portfolio first recommended the networking giant in September 2024 at about $47, when most investors saw a slow-growth relic of the dot-com days. Shares have climbed about 130% since then. We think the market still underrates Cisco’s role in the AI buildout, and that gap leaves plenty of upside.

AI’s plumber: The biggest cloud companies rely on Cisco’s networking gear to link thousands of AI chips across their data centers. They placed about $9.3 billion in AI orders with Cisco in fiscal 2026, and management expects revenue from that business to nearly double next year.Price still matters: Cisco has pulled back from June’s high, though our earliest buyers have still more than doubled their money. The drop hasn’t shaken our confidence, because Cisco’s AI orders and revenue outlook keep pointing up. Still, at about 34 times earnings, the stock isn’t cheap, so we expect some bumps as Cisco’s AI business scales.Team Hidden Gems recommended Cisco again in early October at about $112, and today’s price gives newer investors an even better entry point than ours.

4. Today’s Question!Which earnings report is your make-or-break watch this quarter, and what’s the core metric on your radar?

Discuss with friends and family, or become a member to hear what your fellow Fools are saying!

The Motley Fool has positions in and recommends Bloom Energy, CME Group, Cisco Systems, Comfort Systems USA, GE Aerospace, Honeywell Technologies, Karooooo, MSCI, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy. Discuss with friends and family, or become a member to hear what your fellow Fools are saying!

43 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

On October 15, 2026, Comfort Systems USA Inc FIX shares fell 3.9%, bringing the current price to $1481.27. The stock has fluctuated between a 52-week high of $2073.99 and a low of $770.47. This recent decline adds to a one-week drop of 13.2% and a one-month fall of 6.1%, contrasting sharply with a year-to-date gain of 58.9% and a one-year increase of 77.3%.

GF Value™ verdict: Current price is $1481.27 vs GF Value of $825.49, indicating it is 79.4% overvalued.GF Score™ of 87/100 reflects strong fundamentals, indicating good financial health and performance potential.Most notable signal: Insiders sold $178.4M worth of shares over the past 12 months, with no buy transactions.Is FIX Overvalued or Undervalued?According to the GF Value™, Comfort Systems USA Inc is currently overvalued. The intrinsic value is estimated at $825.49, which suggests a significant margin of safety is absent at the current trading price of $1481.27. This 79.4% overvaluation raises concerns about potential risks, as the market price is significantly detached from the estimated fair value. The GF Valuation label categorizes the stock as “Significantly Overvalued,” reinforcing the notion that the stock may not provide adequate returns relative to its current price.

The GF Value™ is derived from a comprehensive analysis that includes historical trading multiples, past business performance, and future growth estimates, aiming to provide investors with a sense of the stock's fair value. With such a large gap between the current price and intrinsic value, it is crucial for stakeholders to consider the implications of this overvaluation as they assess their investment strategies.

How Does FIX's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)36.4x26.3x (5-Year Median)Forward P/E24.6x-Currently, Comfort Systems USA Inc's P/E (TTM) of 36.4x is significantly higher than its 5-year median P/E of 26.3x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, suggesting that the stock’s valuation is not only above its historical norms but also supports the conclusion that FIX is overvalued at present.

What Does FIX's GF Score™ Tell Us?The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a score of 87/100, Comfort Systems USA Inc demonstrates robust fundamentals, particularly in its profitability and growth ranks, both of which are rated 10/10. However, its valuation rank is notably low at 1/10, indicating significant overvaluation concerns.

MetricRatingGF Score™87Financial Strength8/10Profitability10/10Growth10/10Valuation1/10Momentum10/10The strong GF Score™ of 87 indicates that while Comfort Systems USA Inc excels in profitability and growth, the low valuation rank signifies a critical area of concern. This suggests that, despite the company’s solid performance metrics, the current market price does not reflect an attractive investment opportunity.

What Are Gurus and Insiders Doing with FIX?Currently, 15 gurus hold shares of Comfort Systems USA Inc, with 9 increasing their positions and 5 trimming their stakes in recent quarters. This mixed activity indicates a degree of confidence among some institutional investors, although the overall sentiment appears cautious.

In contrast, insider activity has revealed a concerning trend, with insiders selling $178.4 million worth of shares over the last 12 months and no purchases reported. This pattern suggests a lack of confidence from those closest to the company, further emphasizing the need for potential investors to tread carefully in light of the stock’s current valuation.

What This Means for InvestorsIn conclusion, Comfort Systems USA Inc appears to be significantly overvalued based on its GF Value™ assessment. With the current price of $1481.27 far exceeding the GF Value of $825.49, investors should exercise caution and consider the risks associated with such a high valuation. The mixed signals from guru activities and the concerning insider selling further support the view of caution. For more insights into Comfort Systems USA Inc FIX , visit the stock page for detailed information and analysis.

Frequently Asked QuestionsWhat is FIX's GF Score™?

The GF Score™ for Comfort Systems USA Inc is 87/100, indicating strong fundamentals and positive performance potential.

Is FIX overvalued or undervalued?

According to the GF Value™, FIX is significantly overvalued at a current price of $1481.27 compared to an intrinsic value of $825.49.

What is FIX's P/E ratio?

The P/E ratio for Comfort Systems USA Inc is 36.4x, which is substantially above its 5-year median P/E of 26.3x, indicating a high current valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Comfort Systems USA (NYSE:FIX – Get Free Report) is expected to be releasing its Q3 2026 results after the market closes on Thursday, October 22nd. Analysts expect the company to post earnings of $12.85 per share and revenue of $3.39 billion for the quarter. Individuals may visit the company’s upcoming Q3 2026 earnings summary page for the latest details on the call scheduled for Friday, October 23, 2026 at 11:00 AM ET.

Comfort Systems USA (NYSE:FIX – Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The construction company reported $12.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.45 by $2.08. The business had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $2.99 billion. Comfort Systems USA had a return on equity of 53.55% and a net margin of 12.77%. Comfort Systems USA’s quarterly revenue was up 50.3% on a year-over-year basis. During the same period in the previous year, the business posted $6.53 earnings per share. On average, analysts expect Comfort Systems USA to post $48.15 EPS for the current fiscal year and $59.31 EPS for the next fiscal year.

Comfort Systems USA Stock Performance Shares of NYSE FIX opened at $1,538.84 on Thursday. The firm has a market capitalization of $54.15 billion, a price-to-earnings ratio of 40.01 and a beta of 1.66. Comfort Systems USA has a one year low of $770.47 and a one year high of $2,073.99. The business has a fifty day simple moving average of $1,652.73 and a 200 day simple moving average of $1,730.07. The company has a current ratio of 1.21, a quick ratio of 1.19 and a debt-to-equity ratio of 0.02.

Comfort Systems USA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Monday, August 24th. Shareholders of record on Thursday, August 13th were paid a dividend of $0.90 per share. This is an increase from Comfort Systems USA’s previous quarterly dividend of $0.80. This represents a $3.60 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date was Thursday, August 13th. Comfort Systems USA’s dividend payout ratio is presently 8.85%. Insider Transactions at Comfort Systems USA In related news, insider Brian Lane sold 16,024 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $1,608.21, for a total transaction of $25,769,957.04. Following the completion of the transaction, the insider owned 145,065 shares in the company, valued at $233,294,983.65. This trade represents a 9.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Franklin Myers sold 4,000 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $1,693.92, for a total value of $6,775,680.00. Following the completion of the sale, the director directly owned 8,495 shares in the company, valued at approximately $14,389,850.40. This represents a 32.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 26,078 shares of company stock valued at $43,211,828. Corporate insiders own 1.24% of the company’s stock.

Wall Street Analyst Weigh In A number of equities analysts have recently issued reports on the stock. The Goldman Sachs Group initiated coverage on shares of Comfort Systems USA in a research note on Thursday, July 9th. They issued a “buy” rating and a $2,159.00 price objective for the company. Weiss Ratings raised shares of Comfort Systems USA from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Erste Group Bank lowered shares of Comfort Systems USA from a “buy” rating to a “hold” rating in a research report on Wednesday, July 15th. Stifel Nicolaus set a $1,910.00 target price on shares of Comfort Systems USA and gave the company a “buy” rating in a research note on Monday, July 27th. Finally, DA Davidson began coverage on shares of Comfort Systems USA in a research note on Friday, August 21st. They issued a “buy” rating and a $2,100.00 target price on the stock. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $2,082.86.

Check Out Our Latest Stock Analysis on FIX

Comfort Systems USA Company Profile (Get Free Report)

Comfort Systems USA, Inc (NYSE:FIX) provides mechanical, electrical, and other contracting services for commercial, industrial, and institutional customers. Its work supports the construction, renovation, and ongoing operation of facilities such as office buildings, hospitals, schools, data centers, manufacturing plants, and other complex infrastructure.

The company’s services include heating, ventilation, and air conditioning; plumbing and piping; electrical contracting; building automation and controls; and related specialty services.

Featured Stories Five stocks we like better than Comfort Systems USA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

Receive News & Ratings for Comfort Systems USA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Comfort Systems USA and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Comfort Systems surged 83.8% YTD, but its 30.23X forward P/E exceeds the industry's 22.06X.FIX's record $14.06B backlog and 50.3% revenue growth reflect strong data center demand.FIX faces project concentration risks, unchanged EPS estimates and potentially slowing growth.
Comfort Systems USA, Inc. (FIX - Free Report) has delivered an impressive stock market performance, supported by strong demand for data centers, expanding project backlogs and improving profitability. However, following its sharp rally, the company's elevated valuation raises questions about whether its growth prospects are already reflected in the share price.

Comfort Systems' shares have surged 83.8% year to date (YTD), significantly outperforming the Zacks Building Products - Air Conditioner and Heating industry's 17.6% gain. The stock has also outpaced the Zacks Construction sector, which declined 1.1%, and the S&P 500 Index, which advanced 13.9% during the same period.

FIX’s YTD Price Performance

Image Source: Zacks Investment Research

The rally reflects investors' confidence in Comfort Systems' expanding exposure to high-growth technology infrastructure markets. However, its premium valuation, substantial dependence on large industrial projects and unchanged earnings estimates suggest that investors should carefully assess the stock's risk-reward outlook.

FIX Stock's Premium Valuation Raises ConcernsComfort Systems is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 30.23X, representing a substantial premium to the industry's 22.06X. The stock also trades above its five-year median P/E of 23.45X, although it remains within its historical valuation range of 13.32X-48.14X.

FIX Stock’s Valuation (P/E F12M)

Image Source: Zacks Investment Research

This elevated valuation suggests that investors are already pricing in considerable earnings growth, supported by technology infrastructure spending and strong project execution. However, such expectations leave limited room for operational disappointments, project delays or slower-than-anticipated growth.

Comfort Systems currently has a Value Score of D, indicating that its valuation is less attractive despite strong fundamentals. Although its Growth Score of A, Momentum Score of A and overall VGM Score of A reflect favorable business prospects and share price momentum, the valuation premium increases downside risks if growth moderates.

Strong Quarterly Performance Supports FIX's Growth StoryComfort Systems' second-quarter 2026 results demonstrate the strength of its operating momentum. Quarterly revenues increased 50.3% year over year to $3.27 billion, supported by robust demand across its Mechanical and Electrical businesses. Electrical segment revenues increased 81%, while Mechanical segment revenues rose 40%. Same-store revenue growth reached 44%, reflecting broad-based organic expansion.

Profitability improved considerably, with gross margin expanding 240 basis points year over year to 25.9%. Operating margin increased to 17.1% from 13.8%, supported by improved project execution and operating leverage.

Earnings per share surged 91.9% to $12.53 from $6.53 a year earlier. Adjusted EBITDA increased approximately 80% to $600.5 million. Management expects full-year 2026 same-store revenue growth in the mid-to-high 30% range, indicating continued business strength.

Record Backlog and Data Center Demand Drive ProspectsComfort Systems' expanding backlog provides meaningful revenue visibility through 2027. As of June 30, 2026, backlog reached a record $14.06 billion, increasing 73% year over year and approximately 13% sequentially. Same-store backlog increased 69% year over year, reflecting sustained demand beyond acquisitions.

Technology infrastructure remains the company's primary growth driver. Technology-related projects accounted for approximately 58% of first-half 2026 revenues compared with 40% in the prior-year period.

Demand for data centers, artificial intelligence infrastructure and other mission-critical facilities is supporting new project opportunities. These projects require sophisticated mechanical systems, electrical installations, cooling capabilities and related infrastructure, areas where Comfort Systems maintains established expertise.

Management also indicated that project pipelines remained historically strong, providing confidence in continued construction activity.

Modular Expansion and Acquisitions Strengthen OpportunitiesComfort Systems is expanding its modular construction operations to address growing demand for prefabricated infrastructure solutions.

Modular operations represented approximately 17% of first-half 2026 revenues. The company expects dedicated modular production capacity to exceed 4 million square feet by 2026-end and reach approximately 5 million square feet by late summer 2027.

These investments should improve production capabilities and strengthen the company's position in technology infrastructure markets.

Strategic acquisitions provide another growth avenue. The May 2026 acquisition of Hunt Electric strengthens Comfort Systems' electrical capabilities and geographic presence. Management expects Hunt Electric to contribute approximately $250 million in annualized revenues.

Meanwhile, a strong balance sheet supports future expansion. As of June 30, Comfort Systems held approximately $1.85 billion in cash against $54.1 million in total debt, providing financial flexibility for investments and acquisitions.

Project Concentration and Execution Risks RemainDespite favorable demand trends, Comfort Systems faces risks associated with its increasing dependence on technology and industrial construction projects.

Industrial customers accounted for approximately 75% of first-half 2026 revenues. Such concentration creates exposure to changes in capital spending by large customers, particularly technology companies investing heavily in data centers.

Any slowdown in infrastructure investments, changes in project schedules or delays in customer spending could weaken bookings and backlog conversion.

Furthermore, rapid expansion creates execution challenges. Labor availability, rising wages, material costs and project complexity could pressure profitability. Fixed-price contracts also expose the company to potential cost overruns.

Comfort Systems expects capital expenditures to represent approximately 5% of 2026 revenues, reflecting substantial investment in production facilities and modular capacity.

Although second-quarter operating cash flow reached $1.14 billion, management acknowledged that advance customer payments contributed to its exceptional cash generation. Consequently, investors should not assume that this unusually strong quarterly cash performance will recur consistently.

FIX's Earnings Estimates Show Limited Revision MomentumDespite strong operational performance, analysts' earnings estimates have remained unchanged over the past 30 days, as shown below.

FIX’s EPS Estimate Revision Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $47.65 per share, indicating 65% year-over-year growth. The consensus estimate for 2027 stands at $59.31 per share, suggesting an additional 24.5% increase.

Revenue estimates indicate growth of 42.1% in 2026 and 18.2% in 2027. Although these projections remain encouraging, unchanged earnings estimates suggest limited incremental upward revision momentum despite the stock's substantial appreciation.

Moreover, the expected moderation in revenue and earnings growth during 2027 could make sustaining the current valuation increasingly challenging.

How Does FIX Compare With Industry Peers?Comfort Systems competes with EMCOR Group (EME - Free Report) , Sterling Infrastructure (STRL - Free Report) and Quanta Services (PWR - Free Report) across mechanical, electrical and mission-critical infrastructure markets.

EMCOR benefits from growing demand for electrical construction, mechanical services and data center projects. EMCOR shares have gained 29.1% YTD and trade at 21.75X forward earnings. EMCOR's comparatively lower valuation could appeal to investors seeking exposure to similar infrastructure spending trends.

Sterling is expanding its presence in data centers, semiconductor facilities and advanced manufacturing projects. Sterling Infrastructure shares have surged 67.5% YTD, while its forward P/E stands at 20.91X. Sterling’s valuation offers a relatively lower earnings multiple despite strong infrastructure exposure.

Quanta benefits from electrical infrastructure modernization, power demand and large-scale construction opportunities. Quanta shares have surged 67.3% YTD. However, Quanta trades at 37.53X forward earnings, above Comfort Systems' multiple, reflecting elevated growth expectations across infrastructure markets.

FIX’s YTD Price Performance vs Peers

Image Source: Zacks Investment Research

Should Investors Exercise Caution on FIX Stock?Comfort Systems remains well-positioned to benefit from strong data center construction, expanding modular operations, strategic acquisitions and a record backlog. Its impressive operating performance and healthy balance sheet support favorable long-term business prospects.

However, the stock's 83.8% three-month rally, premium valuation and unchanged earnings estimates suggest that considerable optimism is already reflected in its share price. Increasing exposure to technology infrastructure projects, execution challenges and potentially moderating growth add to the risks.

While Comfort Systems' fundamental outlook remains encouraging, its current valuation offers limited protection against potential disappointments. The company's Zacks Rank #4 (Sell) reinforces a cautious near-term investment stance.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Given the sharp appreciation and elevated expectations, investors may be better positioned to avoid chasing the rally and wait for a more attractive entry point.

Comfort Systems (FIX - Free Report) closed at $1,741.36 in the latest trading session, marking a -4.21% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Coming into today, shares of the heating, ventilation and air conditioning company had gained 10.28% in the past month. In that same time, the Construction sector lost 1.55%, while the S&P 500 gained 1.4%.

Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. In that report, analysts expect Comfort Systems to post earnings of $12.42 per share. This would mark year-over-year growth of 50.55%. Our most recent consensus estimate is calling for quarterly revenue of $3.35 billion, up 36.66% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $47.65 per share and revenue of $12.93 billion, which would represent changes of +64.99% and +42.06%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Comfort Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Comfort Systems currently has a Zacks Rank of #4 (Sell).

From a valuation perspective, Comfort Systems is currently exchanging hands at a Forward P/E ratio of 38.15. For comparison, its industry has an average Forward P/E of 21.16, which means Comfort Systems is trading at a premium to the group.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.

Key Takeaways Comfort Systems' Q2 EPS jumped 92% to $12.53, while revenues surpassed $3 billion for the first time.FIX's record $14.06 billion backlog rose 73%, with Technology driving 57.6% of first-half revenues.Modular capacity is set to expand as customer commitments support growth through late summer 2027. Comfort Systems USA, Inc. (FIX - Free Report) delivered another blockbuster second quarter of 2026, raising the question of whether its latest earnings surge is merely the beginning of a longer growth cycle. The company’s second-quarter 2026 earnings per share (EPS) jumped 92% year over year to $12.53, while revenues soared 50.3% to $3.27 billion, marking the first quarter in which revenues surpassed $3 billion.

The growth was accompanied by powerful margin expansion. Gross margin improved to 25.9% from 23.5% a year ago, while operating margin expanded to 17.1% from 13.8%. Adjusted EBITDA surged 79.7% to $600.5 million, reflecting strong execution, favorable project economics and operating leverage.

FIX’s backlog reached a record $14.06 billion, up 73% year over year, with same-store backlog climbing 69%. Technology represented 57.6% of first-half 2026 revenues, underscoring the company’s increasing exposure to the data-center and AI infrastructure buildout. Management said demand from hyperscalers remains strong, with no signs of a slowdown. Its Modular business adds another growth lever. The company expects production capacity to rise from more than 3.5 million square feet currently to more than 4 million by year-end and roughly 5 million by late summer 2027, supported by customer commitments.

Cash generation further strengthens the outlook. Second-quarter 2026 operating cash flow reached $1.14 billion, while free cash flow was nearly $1 billion. With $1.85 billion of cash and just $54.1 million of debt, FIX has substantial financial flexibility for acquisitions, capacity expansion and shareholder returns. While exceptionally tough comparisons could moderate growth rates, record backlog, technology exposure, Modular expansion and strong execution suggest Comfort Systems’ earnings momentum could have further room to run.

Comfort Systems vs. Carrier Global & AAON: Profit Push?Comfort Systems appears to have the strongest bottom-line momentum among the three, with the second-quarter 2026 EPS surging 92% and adjusted EBITDA jumping nearly 80%. Margin expansion, favorable project execution, disciplined capacity management and high-return Modular investments are helping amplify earnings growth.

Carrier Global Corporation (CARR - Free Report) is pursuing profitability through operating efficiencies, portfolio actions, share repurchases and investments in commercial HVAC, while strong data-center orders are supporting earnings. Second-quarter 2026 adjusted EPS rose to 86 cents, and the company raised its full-year adjusted EPS outlook to $2.90. AAON, Inc. (AAON - Free Report) delivered the fastest reported bottom-line growth, with second-quarter 2026 EPS soaring 258%, supported by higher throughput, capacity utilization and operating leverage. Pricing actions, sourcing initiatives and tighter cost discipline are expected to drive further margin improvement.

Overall, FIX stands out for the combination of earnings growth, margins and visibility, while AAON offers significant operating leverage and Carrier Global brings scale and portfolio-driven efficiency.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have climbed 20.5% over the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

FIX stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 30.57, as the trend lines suggest below.

Image Source: Zacks Investment Research

Earnings Estimate Trend of FIXFIX’s earnings estimates for 2026 and 2027 have increased over the past 60 days to $47.65 and $59.31 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 65% and 24.5%, respectively.

Image Source: Zacks Investment Research

Comfort Systems currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comfort Systems (FIX - Free Report) closed at $1,685.29 in the latest trading session, marking a +1.89% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.2% for the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.

The heating, ventilation and air conditioning company's shares have seen an increase of 6.02% over the last month, surpassing the Construction sector's loss of 4.65% and the S&P 500's loss of 0.35%.

The upcoming earnings release of Comfort Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $12.42, reflecting a 50.55% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 36.66% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $47.65 per share and revenue of $12.93 billion, which would represent changes of +64.99% and +42.06%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Comfort Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Comfort Systems is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Comfort Systems is currently trading at a Forward P/E ratio of 34.71. This valuation marks a premium compared to its industry average Forward P/E of 21.54.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Key Takeaways Comfort Systems expects Hunt to add about $250M in annualized revenue and $217M to backlog.Hunt expands Comfort Systems' Western electrical footprint as second-quarter electrical revenues jumped 81%.Joint Utah projects could pair Hunt's electrical expertise with Comfort Systems' mechanical operations. Comfort Systems USA (FIX - Free Report) appears well positioned to extract meaningful value from its acquisition of R.C. Hunt Electric. The company acquired Utah-based Hunt on May 1, 2026, for a preliminary purchase price of $206 million. Hunt provides electrical design and construction services across industrial, technology, commercial and infrastructure markets in the Western United States. Management expects the business to contribute roughly $250 million of annualized revenues.

The strategic fit looks particularly attractive given Comfort Systems' expanding electrical footprint and strong technology demand. Second-quarter electrical revenues surged 81% year over year, while electrical gross margin improved to 26.4% from 25.3%. Meanwhile, technology accounted for roughly 58% of first-half revenues, supported by robust data-center activity. Hunt also added about $217 million to quarter-end backlog, strengthening Comfort Systems' already record $14.06 billion backlog.

Importantly, early integration appears encouraging. Management said Hunt is already pursuing projects jointly with Comfort Systems' mechanical contractors in Utah, potentially allowing the company to offer broader mechanical-and-electrical solutions and deepen customer relationships. Comfort Systems also retained substantial financial flexibility, ending the quarter with more than $1.8 billion of net cash despite acquisitions and heavy capital spending.

Integration execution and dependence on technology-sector demand remain risks. Still, Hunt's market position, electrical expertise, cross-selling potential and immediate backlog contribution suggest the acquisition could strengthen Comfort Systems' growth platform heading into 2027.

Hunt Deal Strengthens FIX Against Key RivalsThe Hunt Electric acquisition strengthens Comfort Systems’ position in a market where EMCOR Group (EME - Free Report) and Quanta Services (PWR - Free Report) are expanding aggressively. EMCOR Group is a direct rival across electrical and mechanical construction, particularly in mission-critical and data-center work. EMCOR Group reported record second-quarter 2026 revenues of $5.15 billion and remaining performance obligations of $17.14 billion, highlighting strong demand and substantial project visibility.

Quanta also raises the competitive bar. The company generated second-quarter revenues of $9.56 billion and ended the period with $53.4 billion of backlog. Its acquisition strategy has expanded electrical, mechanical and fabrication capabilities, including added exposure to data centers and other technology infrastructure. Quanta Services’ scale, skilled workforce and broad self-perform capabilities could intensify competition for large projects and labor. Still, Hunt gives Comfort Systems a stronger Western electrical presence and creates opportunities to pair electrical expertise with its mechanical operations, supporting broader customer solutions.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 77.7% year to date, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

FIX’s Share Price Performance (YTD)

Image Source: Zacks Investment Research

FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 29.46, as the trend lines suggest below.

FIX Valuation (P/E F12M)

Image Source: Zacks Investment Research

Earnings Estimate Trend of FIXFIX’s earnings estimates for 2026 increased to $47.65 per share, while the 2027 estimate declined to $59.31 over the past 60 days, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 65% and 24.5%, respectively.
 

Image Source: Zacks Investment Research

Comfort Systems currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comfort Systems USA, Inc. FIX is benefiting from favorable developments in project execution as work progresses through the construction cycle. Changes in project estimates can affect revenues as costs, pricing and project conditions become clearer.

In the latest trading session, Comfort Systems (FIX - Free Report) closed at $1,632.59, marking a -1.14% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.49% for the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.

Prior to today's trading, shares of the heating, ventilation and air conditioning company had lost 0.26% was narrower than the Construction sector's loss of 8.95% and lagged the S&P 500's gain of 0.1%.

Market participants will be closely following the financial results of Comfort Systems in its upcoming release. The company is forecasted to report an EPS of $12.42, showcasing a 50.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.27 billion, indicating a 33.36% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $47.65 per share and revenue of $12.77 billion, which would represent changes of +64.99% and +40.34%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Comfort Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. Comfort Systems presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Comfort Systems is currently exchanging hands at a Forward P/E ratio of 34.65. This expresses a premium compared to the average Forward P/E of 21.87 of its industry.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Nykredit A S acquired a new stake in Comfort Systems USA, Inc. (NYSE:FIX – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 14,709 shares of the construction company’s stock, valued at approximately $29,153,000.

Several other institutional investors also recently bought and sold shares of the company. Jones Financial Companies Lllp purchased a new stake in shares of Comfort Systems USA in the second quarter valued at about $26,000. Core Wealth Advisors LLC purchased a new stake in Comfort Systems USA in the 4th quarter valued at approximately $28,000. Avalon Trust Co acquired a new position in Comfort Systems USA during the 2nd quarter worth approximately $32,000. Field & Main Bank acquired a new position in Comfort Systems USA during the 2nd quarter worth approximately $32,000. Finally, Carolina Wealth Advisors LLC raised its stake in shares of Comfort Systems USA by 63.6% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 18 shares of the construction company’s stock worth $36,000 after buying an additional 7 shares in the last quarter. 96.51% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Comfort Systems USA In related news, CFO William George, III sold 2,554 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $1,859.65, for a total transaction of $4,749,546.10. Following the transaction, the chief financial officer owned 30,250 shares of the company’s stock, valued at approximately $56,254,412.50. This represents a 7.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Franklin Myers sold 6,700 shares of the firm’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $1,954.47, for a total transaction of $13,094,949.00. Following the sale, the director owned 62,115 shares in the company, valued at approximately $121,401,904.05. This trade represents a 9.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 32,778 shares of company stock worth $56,306,777. Corporate insiders own 1.24% of the company’s stock.

Analysts Set New Price Targets A number of research firms recently weighed in on FIX. KeyCorp lifted their price target on Comfort Systems USA from $2,004.00 to $2,110.00 and gave the company an “overweight” rating in a research note on Monday, July 27th. Zacks Research raised Comfort Systems USA from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 28th. The Goldman Sachs Group initiated coverage on shares of Comfort Systems USA in a research report on Thursday, July 9th. They set a “buy” rating and a $2,159.00 target price on the stock. Oppenheimer began coverage on shares of Comfort Systems USA in a research note on Thursday, May 28th. They set an “outperform” rating and a $2,200.00 price target on the stock. Finally, Weiss Ratings cut shares of Comfort Systems USA from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, Comfort Systems USA has an average rating of “Buy” and an average price target of $2,082.86. Get Our Latest Stock Analysis on FIX

Comfort Systems USA Trading Up 4.7% Shares of FIX opened at $1,647.23 on Friday. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.21 and a quick ratio of 1.19. The firm has a 50 day simple moving average of $1,671.46 and a 200-day simple moving average of $1,693.30. Comfort Systems USA, Inc. has a 1-year low of $757.00 and a 1-year high of $2,073.99. The stock has a market cap of $57.97 billion, a price-to-earnings ratio of 40.51 and a beta of 1.67.

Comfort Systems USA (NYSE:FIX – Get Free Report) last posted its earnings results on Thursday, July 23rd. The construction company reported $12.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.45 by $2.08. The firm had revenue of $3.27 billion for the quarter, compared to analyst estimates of $2.99 billion. Comfort Systems USA had a return on equity of 53.55% and a net margin of 12.77%.Comfort Systems USA’s revenue was up 50.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.53 EPS. Equities analysts forecast that Comfort Systems USA, Inc. will post 48.15 EPS for the current fiscal year.

Comfort Systems USA Increases Dividend The company also recently announced a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Thursday, August 13th were paid a $0.90 dividend. This represents a $3.60 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Thursday, August 13th. This is a positive change from Comfort Systems USA’s previous quarterly dividend of $0.80. Comfort Systems USA’s dividend payout ratio is presently 8.85%.

Comfort Systems USA Profile (Free Report)

Comfort Systems USA, Inc is a provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services. The company designs, installs, maintains and repairs mechanical systems used in buildings and industrial facilities, including heating and cooling equipment, plumbing, piping, controls and related building infrastructure.

The company serves customers through a network of operating subsidiaries across the United States. Its projects and services support a range of facilities, including office buildings, healthcare and educational institutions, manufacturing sites, technology and data center facilities, and other commercial and industrial properties.

Featured Stories Five stocks we like better than Comfort Systems USA J.B. Hunt’s Stock Plunges After Market Misprices Profit Warning 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lennar’s Q3 Miss Hides a Stronger Operating Story Beneath the Housing Slump These 3 Stocks Are Drawing Insider Buyers for Very Different Reasons Want to see what other hedge funds are holding FIX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Comfort Systems USA, Inc. (NYSE:FIX – Free Report).

Receive News & Ratings for Comfort Systems USA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Comfort Systems USA and related companies with MarketBeat.com's FREE daily email newsletter.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Comfort Systems (FIX - Free Report) Comfort Systems USA is a national provider of comprehensive mechanical and electrical contracting services serving commercial, industrial and institutional end markets across the United States. The company designs, builds, installs, maintains, repairs and replaces mechanical, electrical and plumbing systems, including HVAC, piping and controls, electrical systems, off-site construction, monitoring and fire protection. It was established in 1997 as a Delaware corporation and leases its executive and administrative offices in Houston, TX. As of Aug. 3, 2026, Comfort Systems reported 51 operating companies at 206 locations in 150 cities.

FIX is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FIX has a Growth Style Score of A, forecasting year-over-year earnings growth of 65% for the current fiscal year.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $4.56 to $47.65 per share. FIX boasts an average earnings surprise of +34.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIX should be on investors' short list.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Comfort Systems (FIX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Comfort Systems currently has an average brokerage recommendation (ABR) of 1.31, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 13 brokerage firms. An ABR of 1.31 approximates between Strong Buy and Buy.

Of the 13 recommendations that derive the current ABR, 11 are Strong Buy, representing 84.6% of all recommendations.

Brokerage Recommendation Trends for FIX

Check price target & stock forecast for Comfort Systems here>>>

The ABR suggests buying Comfort Systems, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in FIX?In terms of earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $46.4.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Comfort Systems. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Comfort Systems may serve as a useful guide for investors.

Key Takeaways FIX fell 12.4% in three months even as Q2 revenues jumped 50.3% and EPS rose 91.9%.Record backlog hit $14.06 billion, up 73.1%, while technology reached 57.6% of first-half revenue.Strong cash flow & modular expansion support growth, but FIX's 29.55X forward P/E leaves less room for error. Comfort Systems USA (FIX - Free Report) has lost 12.4% over the past three months, reflecting weaker investor sentiment despite continued business momentum. Even after the decline, the stock has performed better than the Zacks Building Products - Air Conditioner and Heating industry, which fell 14.9% over the same period. However, FIX has trailed the Zacks Construction sector’s 9.3% decline and the S&P 500’s 3% gain, raising the question of whether the recent weakness has created an attractive entry point.

FIX Price Performance (3-Month)
Image Source: Zacks Investment Research

The company’s operating performance remains a key support to the investment case. In the second quarter of 2026, revenues advanced 50.3% year over year to $3.27 billion, aided by strong demand, particularly from technology and data center customers. Earnings per share (EPS) rose 91.9% to $12.53, while gross margin expanded to 25.9% from 23.5%. Operating margin also improved to 17.1% from 13.8%, reflecting solid execution and better cost leverage.

Strong Q2 Results Keep the Growth Story IntactSecond-quarter 2026 revenues increased 50.3% year over year to $3.27 billion, while EPS rose 91.9% to $12.53. Gross margin improved to 25.9% from 23.5%, and operating margin expanded to 17.1% from 13.8%. Management expects full-year same-store revenue growth in the mid- to high-30% range.

Backlog reached a record $14.06 billion as of June 30, up 73.1% year over year and 12.9% sequentially. Comfort Systems expects to recognize about 65-75% of its remaining construction performance obligations over the next 12 months, providing strong visibility into 2027.

Technology and Modular Demand Support FIX’s RunwayTechnology remains the main growth driver. Technology accounted for 57.6% of first-half revenues, up from 40.2% a year earlier. Technology bookings drove much of the backlog increase, while institutional markets such as health care, education and government also remain supportive.

Modular expansion adds another growth engine. Comfort Systems had more than 3.5 million square feet of dedicated modular capacity and expects more than 4 million by year-end and roughly 5 million by late summer 2027. Management said that expansion is backed by meaningful multiyear customer commitments rather than speculative building. Pilot work with frontier labs and colocation providers could also broaden the customer base.

Strong Cash Generation Supports ExpansionComfort Systems ended the second quarter with $1.85 billion in cash and only $54.1 million of total debt, leaving more than $1.8 billion of net cash. Second-quarter free cash flow was $999 million and first-half free cash flow reached $1.24 billion.

Management expects capital spending of roughly 5% of revenues as it expands production facilities and invests in automation and specialized equipment. Even with acquisitions and higher investment, liquidity remains strong. The company has generated positive net free cash flow for 27 consecutive calendar years, giving it room to fund expansion, dividends and acquisitions without heavy balance-sheet pressure.

What Could Slow FIX Stock’s Momentum?Comfort Systems continues to face higher labor costs and intermittent supply-chain shortages, including delays in materials and equipment. Earlier purchasing, pricing and project planning have helped, but these pressures can still affect productivity and project timing. Management is also preparing for a range of economic conditions, including the possibility of a recession, although it expects supportive conditions in manufacturing and technology to continue through 2026.

Technology concentration also raises risk. With technology near 58% of first-half revenues, any slowdown in data center or related infrastructure spending could have a larger effect than before. Rapid modular expansion and a much larger backlog also raise execution demands.

Premium Valuation Leaves Less Room for ErrorFIX trades at 29.55X forward 12-month earnings, above the industry’s 22.83X and its five-year median of 23.05X. Although below the upper end of its five-year range of 13.32-48.14X, the stock remains expensive relative to its own history and industry.

FIX Stock’s Valuation (P/E F12M)
Image Source: Zacks Investment Research

Still, estimates are moving higher. In the past 30 days, the Zacks Consensus Estimate for 2026 EPS  increased to $46.40 from $46.38, and the same for 2027 EPS rose to $58.31 from $57.81, with no downward revisions. The estimates imply EPS growth of 60.7% in 2026 and 25.7% in 2027, while revenues are expected to rise 38.3% and 19.8%, respectively.

FIX’s EPS Estimate Revision Trend
Image Source: Zacks Investment Research

How FIX Compares With EMCOR, Sterling and QuantaComfort Systems’ 12.4% three-month decline falls between key infrastructure peers. EMCOR Group (EME - Free Report) shares are down 7%, Quanta Services (PWR - Free Report) is down 8.2%, while Sterling Infrastructure (STRL - Free Report) has fallen 40.9%. Comfort Systems has therefore lagged EMCOR and Quanta but held up much better than Sterling.

Valuation gives a mixed signal. EMCOR trades at 21.02X forward earnings and Sterling at 20.59X, making both EMCOR and Sterling cheaper than Comfort Systems at 29.55X. Quanta trades at 34.52X, leaving FIX at a discount to Quanta. EMCOR remains a close rival in mechanical, electrical and mission-critical building services, Sterling competes for data center, semiconductor and advanced manufacturing projects, and Quanta has broad exposure to electrical construction and integrated infrastructure. EMCOR, Sterling and Quanta therefore provide useful benchmarks: FIX carries a premium to two of the three, but its growth profile and balance-sheet strength help support that premium.

Is Comfort Systems Stock a Buy After the Dip?Wall Street remains positive. FIX’s ABR is 1.31, with 11 of 13 recommendations at Strong Buy, and the average price target of $2,135.44 implies 32.2% upside from the last closing price. More importantly, upward earnings revisions support its Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 

Image Source: Zacks Investment Research

The pullback does not make FIX cheap, and technology concentration plus a premium multiple leave less room for setbacks. Still, record backlog, modular expansion, strong cash generation and rising estimates keep the growth case intact. Investors comfortable with valuation risk may view the recent weakness as a buying opportunity.