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AlphaGrep UK Ltd purchased a new position in shares of Comfort Systems USA, Inc. (NYSE:FIX – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 533 shares of the construction company’s stock, valued at approximately $1,056,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Turner Financial Group Inc. purchased a new position in Comfort Systems USA in the second quarter valued at approximately $338,000. Three Seasons Wealth LLC acquired a new stake in Comfort Systems USA in the 2nd quarter valued at $565,000. SMART Wealth LLC purchased a new position in Comfort Systems USA in the second quarter valued at about $200,000. Comprehensive Financial Planning Inc. PA purchased a new position in Comfort Systems USA in the second quarter valued at about $347,000. Finally, Concurrent Investment Advisors LLC lifted its stake in shares of Comfort Systems USA by 304.0% during the second quarter. Concurrent Investment Advisors LLC now owns 3,741 shares of the construction company’s stock worth $7,414,000 after purchasing an additional 2,815 shares in the last quarter. 96.51% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Comfort Systems USA In related news, insider Brian Lane sold 16,024 shares of the company’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $1,608.21, for a total value of $25,769,957.04. Following the completion of the sale, the insider owned 145,065 shares of the company’s stock, valued at $233,294,983.65. This represents a 9.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO William George, III sold 2,554 shares of the 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 completion of the transaction, the chief financial officer owned 30,250 shares of the company’s stock, valued at $56,254,412.50. This trade represents a 7.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 32,778 shares of company stock valued at $56,306,777. 1.24% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets FIX has been the subject of a number of recent research reports. DA Davidson started coverage on Comfort Systems USA in a research note on Friday, August 21st. They issued a “buy” rating and a $2,100.00 target price for the company. The Goldman Sachs Group started coverage on Comfort Systems USA in a research report on Thursday, July 9th. They set a “buy” rating and a $2,159.00 price target on the stock. Zacks Research upgraded shares of Comfort Systems USA from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 28th. Stifel Nicolaus set a $1,910.00 target price on shares of Comfort Systems USA in a research report on Monday, July 27th. Finally, KeyCorp raised their price target on shares of Comfort Systems USA from $2,004.00 to $2,110.00 and gave the company an “overweight” rating in a report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $2,082.86. View Our Latest Analysis on FIX

Comfort Systems USA Price Performance Shares of NYSE:FIX opened at $1,611.87 on Friday. The firm’s 50 day moving average is $1,708.39 and its two-hundred day moving average is $1,678.66. Comfort Systems USA, Inc. has a 52 week low of $682.00 and a 52 week high of $2,073.99. The firm has a market capitalization of $56.72 billion, a P/E ratio of 39.64 and a beta of 1.67. 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 (NYSE:FIX – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The construction company reported $12.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.45 by $2.08. Comfort Systems USA had a return on equity of 53.55% and a net margin of 12.77%.The business had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same period in the previous year, the firm posted $6.53 earnings per share. The business’s revenue was up 50.3% on a year-over-year basis. Analysts anticipate that Comfort Systems USA, Inc. will post 47.2 earnings per share for the current year.

Comfort Systems USA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Thursday, August 13th were paid a $0.90 dividend. 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. This represents a $3.60 annualized dividend and a dividend yield of 0.2%. Comfort Systems USA’s dividend payout ratio (DPR) is currently 8.85%.

(Free Report)

Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.

Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.

Read More Five stocks we like better than Comfort Systems USA Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst 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).

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In the latest close session, Comfort Systems (FIX - Free Report) was up +1.29% at $1,580.19. The stock's performance was ahead of the S&P 500's daily gain of 1.06%. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.4%.

Shares of the heating, ventilation and air conditioning company witnessed a loss of 10.18% over the previous month, trailing the performance of the Construction sector with its loss of 5.68%, and the S&P 500's gain of 2.46%.

Market participants will be closely following the financial results of Comfort Systems in its upcoming release. The company is predicted to post an EPS of $12.06, indicating a 46.18% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.19 billion, indicating a 30.3% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $46.4 per share and revenue of $12.59 billion, indicating changes of +60.66% and +38.32%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Comfort Systems should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. Comfort Systems is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Comfort Systems's current valuation metrics, including its Forward P/E ratio of 33.63. This signifies a premium in comparison to the average Forward P/E of 21.52 for its industry.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.

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

Key Takeaways Comfort Systems ended Q2 2026 with $1.85B in cash, $54.1M in debt and more than $1.8B in net cash.FIX generated $999M in Q2 free cash flow, while first-half 2026 free cash flow reached $1.24B.FIX targets about 5M square feet of modular capacity by late summer 2027, backed by commitments. Comfort Systems USA (FIX - Free Report) appears well positioned to finance its aggressive expansion without putting meaningful stress on its balance sheet. The company ended the second quarter of 2026 with $1.85 billion in cash against just $54.1 million of total debt, leaving it with a net cash position of more than $1.8 billion. That cushion has strengthened even as Comfort Systems funded acquisitions and stepped up investment in production capacity.

Cash generation is providing the main funding engine. Second-quarter operating cash flow reached $1.14 billion, while free cash flow was $999 million. For the first six months of 2026, free cash flow totaled $1.24 billion. Management expects full-year capital expenditures to equal roughly 5% of revenues as it buys and equips buildings with automation, robotics and specialized production equipment.

The spending supports a sizable modular expansion. Comfort Systems has more than 3.5 million square feet of modular capacity, expects more than 4 million by year-end and roughly 5 million by late summer 2027. Importantly, management said that it will not build facilities speculatively; expansion is tied to meaningful multiyear customer commitments, helping reduce investment risk.
Financial flexibility also remains strong despite the May acquisition of Hunt Electric, expected to add about $250 million of annualized revenues, and a higher dividend. A record backlog of $14.06 billion further supports future activity.

Still, the extraordinary cash flow may not be fully repeatable because advance customer payments contributed to the quarter. Overall, low debt, substantial cash and disciplined capacity additions suggest Comfort Systems can fund growth while keeping financial stress contained.

How Comfort Systems’ Financial Flexibility Compares With Key RivalsEMCOR Group (EME - Free Report) and Quanta Services (PWR - Free Report) provide useful comparisons as Comfort Systems accelerates investment in capacity, automation and data-center-related infrastructure.

EMCOR competes closely in mechanical and electrical construction, with strong exposure to mission-critical and high-tech projects. Like Comfort Systems, EMCOR benefits from healthy cash generation that can support organic investment and acquisitions. EMCOR’s disciplined acquisition strategy also highlights the importance of balancing expansion with balance-sheet flexibility.

Quanta operates on a much larger infrastructure platform spanning electric power, communications and renewable-energy markets. Quanta continues to deploy capital toward acquisitions, workforce expansion and infrastructure capabilities to capture multiyear demand. However, Quanta’s broader acquisition-driven strategy can require greater capital commitments than Comfort Systems’ current expansion model.

Comfort Systems therefore stands out for pairing aggressive capacity additions with exceptionally low debt and substantial cash. Its ability to finance expansion internally could provide greater flexibility if construction demand moderates or additional acquisition opportunities emerge.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 65.6% year to date, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

FIX 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 28.52, 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 and 2027 have moved upward in the past 60 days to $45.86 and $58.33 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 58.8% and 27.2%, respectively.
 

Image Source: Zacks Investment Research

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

Aug. 31, 2026 A quick note before we begin: Today's Breakfast News is a special edition -- a single deep dive on the AI power build-out in place of your usual Monday preview of the week ahead. Regular service resumes Tuesday. Fool on!

17 Stocks, 3 Tiers, 1 Question

Image source: Jester AI.

In September 2024, Microsoft (MSFT -0.61%) signed a 20-year contract to buy every kilowatt-hour of power from a nuclear plant that had been shut down five years earlier. Three Mile Island Unit 1, which stopped generating electricity in 2019, is now being restarted at a cost of $1.6 billion -- because Microsoft needs its 837 megawatts to power artificial intelligence (AI) data centers that won't otherwise have anywhere to plug in.

That tells you almost everything you need to know about the state of the AI infrastructure build-out in 2026. Hyperscalers are paying to restart plants they didn't want six years ago. Utilities are planning gas fleet expansions that would have been politically inconceivable a decade ago.

Start-ups are borrowing tens of billions of dollars against warehouses full of graphics processing units (GPUs) that will be obsolete before the loans are repaid. It's all happening at an unprecedented scale. McKinsey estimates the world will need more than $7 trillion of data center investment by 2030, with over $5 trillion of that dedicated to AI.

We've all seen this movie before: An initial euphoric build-out, a moment of realization that supply has run past demand, a punishing digestion phase, and a small number of survivors that emerge with structural moats intact. Think of railroads, fiber, and shale. In every case, the great fortunes were made not by the companies that captured the peak of the cycle but by the ones whose economics didn't require the peak to persist.

That brings us to the question at the heart of this piece. Of the public companies exposed to the AI data center build-out, which have positioned themselves to compound through the cycle, which are running plays that dissolve when demand normalizes, and which are so dependent on this one thesis that they have no obvious path if it doesn't hold?

We organized the answer into three tiers.

Structural: Constellation Energy (CEG +0.54%), Equinix (EQIX -1.38%), Digital Realty Trust (DLR -0.78%), Eaton (ETN -3.19%), Corning (GLW -0.50%), EMCOR (EME -0.16%), and Brookfield Asset Management (BAM -1.45%). Companies whose moats will still be worth owning if AI capital expenditure (capex) normalizes tomorrow. Nuclear plants that took decades to permit. Interconnection density that took decades to build. Contract structures that lock in economics for 20 years. The build-out accelerated these businesses. Cyclical: Talen (TLN -0.26%), NextEra Energy (NEE -1.21%), Entergy (ETR -0.19%), EQT (EQT +0.97%), GE Vernova (GEV -2.29%), Vertiv (VRT +0.29%), and Comfort Systems (FIX -5.96%). Companies that benefit meaningfully from the build-out but whose economics rise and fall with its intensity. Think merchant power operators capturing spot prices that reflect scarcity. The category also includes equipment suppliers whose growth rate is the build-out's growth rate and regulated utilities making big rate-based capital bets on demand that must persist for the returns to earn out. Exposed: CoreWeave (CRWV -1.03%), Bloom Energy (BE -1.47%), and IREN (IREN -12.53%). Companies built for one specific scenario, whose assets have no obvious alternative use if that scenario fails. Think of single-purpose GPU cloud providers with concentrated customer bases and debt secured against depreciating hardware, or specialized on-site power companies whose economics depend on the grid staying constrained. None of this is a recommendation. The point of the framework is to help you think clearly about what you actually own or might buy should you take a position on the AI build-out.

The Bottom Line Seventeen companies. Seven Structural, seven Cyclical, three Exposed. A few patterns stood out to us after sorting these companies.

Cyclical is the biggest bucket. That's what a capex supercycle looks like from the supply side. You have merchant power operators capturing spot prices, along with utilities making rate-based bets. Then the equipment suppliers whose backlogs are the build-out's backlog. This is also where earnings are showing up most dramatically in 2026 and where they'll compress most visibly when the cycle turns. Several of these are excellent businesses. They're just excellent businesses at a moment when the market is paying them for the moment -- not for the decade.

Pure-play exposure differs from durable exposure. Vertiv and Eaton both sell into the data center. Comfort Systems and EMCOR both wire it. In each pair, the diversified operator ended up Structural, and the pure-play ended up Cyclical. Purity concentrates the upside and downside symmetrically. Diversification is what lets the moat survive the driving thesis softening.

The same tech shows up in different tiers. These were the tier assignments we chewed on longest. Constellation Energy and Talen both own nuclear plants. Both have hyperscaler power purchase agreements (PPAs). Constellation converted its nuclear scarcity into 20-year fixed-output contracts across the fleet. Talen has done that for one asset, while the rest of its portfolio rides the strongest merchant power market in a generation. The plants look similar, but the economics don't. That's where the framework really helps -- separating ownership of the moat from conversion of the moat into contracted economics.

None of this is a forecast about who survives. It's not clear which of these 17 companies will emerge with structural moats intact in 2035. What we do know is that the question is worth asking now while the build-out is still going, and the answer isn't yet obvious.

Your Take If you could own just one of the 17 companies named, which would it be -- and why?

Debate 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, Brookfield Asset Management, Comfort Systems USA, Constellation Energy, Corning, EMCOR Group, EQT, Eaton Plc, Entergy, Equinix, GE Vernova, Microsoft, NextEra Energy, Talen Energy, and Vertiv. The Motley Fool recommends Digital Realty Trust. The Motley Fool has a disclosure policy.

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.

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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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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.

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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 #2 (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 58.8% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.81 to $45.86 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 August 26, 2026, we delve into the DCF analysis for Comfort Systems USA Inc FIX, a company that has experienced significant price fluctuations recently. Over the past year, the stock has surged by 126.5%, but it has also seen a decline of 10.2% in the last week alone. This volatility raises questions about its current valuation.

DCF Earnings-based intrinsic value is $1295.53, compared to the current price of $1561.96 (margin of safety: -20.6%) DCF Free Cash Flow (FCF)-based intrinsic value is $1912.47, suggesting a second opinion on valuation. GF Score™ of 85/100 indicates strong financial health, but the low predictability rank of 1/5 stars suggests caution in relying solely on DCF inputs. What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model for Comfort Systems USA Inc utilizes a two-stage approach to estimate intrinsic value. The first stage reflects a high growth phase over the next ten years, while the second stage accounts for a more stable growth rate thereafter. Below are the key assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $41.46 10-Year Growth Rate 33.2% 10-Year Treasury Rate 4.64% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS is projected to grow at 33.2% annually, discounted at a rate of 11%. The terminal phase (Years 11-20) assumes a more modest growth rate of 4%, also discounted at 11%. The calculation summary is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.2%, discounted at 11% $536.76 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $758.77 Intrinsic Value Growth + Terminal $1295.53 With the current price at $1561.96, the intrinsic value of $1295.53 indicates that the stock is modestly overvalued, with a margin of safety of -20.6%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows a stronger correlation between stock prices and earnings than with free cash flow. For further analysis, you can visit the FIX DCF Calculator.

What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for Comfort Systems USA Inc is calculated at $1912.47. This figure presents a contrasting perspective compared to the earnings-based DCF, suggesting that while the earnings model indicates overvaluation, the FCF model points towards a modest undervaluation with an 18.3% margin of safety. This discrepancy highlights the importance of considering multiple valuation methods.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc stands at $793.13, providing yet another layer of valuation insight. This proprietary measure from GuruFocus is derived from historical trading multiples, past business growth, and future performance estimates. The divergence among the three models—earnings DCF, FCF DCF, and GF Value™—suggests a complex valuation landscape for FIX. For more details, visit the GF Value™ page.

What Does FIX's GF Score™ Tell Us? The GF Score™ evaluates a stock's overall quality based on various factors, including financial strength, profitability, growth potential, valuation, and momentum. For Comfort Systems USA Inc, the GF Score™ is 85/100, indicating robust financial health. However, the predictability rank of 1/5 stars suggests that the DCF model may be less reliable for this stock due to its lower predictability. Below is a summary of the GF Score™ metrics:

Metric Rating GF Score™ 85/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 For more information, you can check the FIX stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as Comfort Systems USA Inc, yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future realities.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a notable tension. The earnings DCF suggests that FIX is modestly overvalued, while the FCF DCF indicates a modest undervaluation. The GF Value™ further complicates the picture, suggesting significant overvaluation. Additionally, the guru ownership signal shows that 15 gurus currently hold the stock, with 9 adding to their positions and 5 trimming their stakes, while insiders have sold $156.3M worth of shares over the past year. This mixed signal warrants caution for potential investors. For a deeper dive into the valuation, visit the FIX DCF Calculator.

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

Answer: earnings-based $1295.53, FCF-based $1912.47

Is FIX overvalued or undervalued?

Answer: The earnings DCF indicates it is overvalued, while the FCF DCF suggests it is undervalued, and GF Value™ shows significant overvaluation.

How reliable is the DCF model for FIX?

Answer: The predictability rank of 1/5 indicates that the DCF model is less reliable for this stock.

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].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Comfort Systems (FIX - Free Report) .

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>>>

While the ABR calls for buying Comfort Systems, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

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.

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

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

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.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

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 $45.86.

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.

For Immediate ReleaseChicago, IL – August 24, 2026 – Today, Zacks Equity Comfort Systems USA (FIX - Free Report) , Carrier Global Corp. (CARR - Free Report) and SPX Technologies, Inc. (SPXC - Free Report)

Industry: HVAC

Link: https://www.zacks.com/commentary/2978143/3-air-conditioner-heating-stocks-to-buy-as-hvac-demand-grows

The Zacks Building Products - Air Conditioner & Heating industry continues to benefit from several favorable trends in 2026. Rapid data center development is driving demand for specialized and energy-efficient cooling systems, while electrification and tighter efficiency standards are supporting heat pumps and other advanced HVAC solutions. Rising adoption of smart controls and connected systems, along with steady service and aftermarket demand, provides further support.

On the downside, weakness in single-family construction and cautious consumer spending continue to limit residential HVAC demand, increasing dependence on replacement activity. Tariffs, commodity and freight inflation also create cost pressures, while investments in new manufacturing capacity can weigh on margins through start-up costs and lower initial utilization. Despite these challenges, companies such as Comfort Systems USA, Carrier Global Corp. and SPX Technologies, Inc. are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.

Industry DescriptionThe Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. 

The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.

4 Trends Shaping the Future of the Air Conditioner & Heating IndustryData Center Boom Fuels Commercial HVAC Demand: Rapid investment in AI, cloud computing and hyperscale data centers is emerging as a major growth driver for the U.S. Air Conditioner and Heating industry. These facilities require large, reliable and energy-efficient cooling systems to manage increasingly dense computing workloads. Demand is expanding across air- and water-cooled chillers, custom air handlers, cooling towers, dry and adiabatic cooling systems and related equipment. 

Strong project pipelines are also encouraging manufacturers to expand production capacity and improve throughput. Importantly, hyperscale and colocation projects generally provide greater forward visibility because cooling equipment must be secured well before facilities become operational, supporting a favorable multiyear demand outlook. 

Electrification, Efficiency Upgrades and Smart HVAC Drive Growth: Electrification, tighter efficiency standards and smart-building adoption are supporting U.S. HVAC industry growth in 2026. Demand for electric heat pumps, high-SEER air conditioners and low-GWP refrigerant systems is rising as customers seek lower energy use and compliance with stricter regulations. Federal and state incentives are helping offset upgrade costs, while aging equipment supports resilient replacement demand.

Meanwhile, HVAC systems are becoming more connected through intelligent controls, smart thermostats, humidification systems and actuated valves, improving efficiency, performance and operational visibility. This shift toward higher-value, connected equipment is also expanding service and aftermarket opportunities across residential and commercial markets.

Housing Weakness Limits Residential HVAC Recovery: Residential HVAC demand remains under pressure from persistent weakness in the U.S. housing market. New single-family construction continues to face challenges, while cautious consumer spending is restraining discretionary repair and remodeling activity. A meaningful recovery in residential construction is not expected in 2026, limiting demand for HVAC systems tied to new homes. 

Although earlier channel destocking is fading, underlying demand remains subdued and increasingly reliant on replacement activity rather than new installations. These conditions could keep residential HVAC volumes under pressure and make the segment more vulnerable to housing affordability constraints, elevated borrowing costs and continued consumer caution.

Tariffs, Inflation and Capacity Costs Pressure Margins: Cost pressures remain a key challenge for the U.S. Air Conditioner and Heating industry in 2026. Tariffs are raising costs for certain materials and components, while commodity, freight and other inflationary pressures add uncertainty to the price-cost equation. Pricing actions can offset some of these pressures, but tariff-related price increases do not necessarily translate into higher margins.

At the same time, manufacturers are rapidly expanding capacity to meet strong commercial and data center demand. New facilities and production lines can initially generate start-up costs, lower utilization and operating inefficiencies. Higher utilization, sourcing improvements and productivity gains will therefore be important for margin improvement.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries. 

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. 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.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2026, the industry’s earnings estimates for 2026 and 2027 have increased to $5.11 per share (from $4.91) and $5.95 per share (from $5.70), respectively.

We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.

Industry Outperforms Sector, Lags S&P 500The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector but lagged the Zacks S&P 500 Composite over the past year.

In the same time frame, the industry has gained 16.7% compared with the broader sector’s 6.5% rise. Meanwhile, the Zacks S&P 500 Composite has gained 23.4% during the period.

Industry's Current ValuationOn the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 23.87X compared with the S&P 500’s 20.55X and the sector’s 19.99X.

Over the past five years, the industry has traded as high as 30.77X, as low as 15.87X and at a median of 23.97X.

3 Air Conditioner and Heating Stocks to Buy NowBelow, we have discussed three stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.

Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems is benefiting from strong demand across technology and other industrial markets, supported by continued data center construction and rising needs for complex mechanical and electrical infrastructure. Direct relationships with hyperscalers provide visibility into future projects, while sustained customer demand supports further expansion of its modular operations.  

The company is also broadening its modular customer base through opportunities with frontier labs and colocation providers.  Strong institutional demand, disciplined project selection and skilled tradespeople further support execution. Meanwhile, the growing installed base of data centers creates a longer-term opportunity to expand recurring service and maintenance work.

 Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 142.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $45.86 from $43.05 over the past 30 days. The estimated figure indicates 58.8% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 34.6%. Again, Comfort Systems’ trailing 12-month return on equity of 53.6% is better than its peer group average of 16.9%. It has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies is benefiting from robust demand for data center cooling solutions, supported by hyperscaler, colocation and neocloud customers. Capacity expansions, improved production flow, lean initiatives and higher throughput are strengthening its ability to meet this demand.  

The Neptronic acquisition adds another growth avenue by broadening SPX’s HVAC portfolio with intelligent controls, electric heating, humidification and actuated valves, while expanding its addressable markets.  Strong customer relationships and global distribution channels provide cross-selling opportunities. Meanwhile, healthy project activity, innovation and synergy initiatives in Detection & Measurement, along with an active acquisition pipeline, should support further growth.

SPX Technologies currently carries a Zacks Rank #2. The stock has gained 7.4% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $8.41 from $8.06 over the past 30 days. The estimated figure indicates 24.4% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 8.6%. Again, SPXC’s trailing 12-month return on equity is 16.5%.

Carrier: Headquartered in Palm Beach Gardens, FL, Carrier provides intelligent climate and energy solutions worldwide. Carrier has been benefiting from robust commercial HVAC demand, particularly from data centers, supported by growing hyperscaler and colocation investments and capacity expansion. Growing adoption of liquid cooling provides another opportunity as AI infrastructure becomes more power intensive. 

The recovery in residential and light commercial HVAC, supported by replacement demand and improving channel conditions, adds momentum. In Europe, heat-pump adoption, supportive subsidies, high natural-gas prices and new product launches remain favorable. Carrier is also benefiting from expanding aftermarket opportunities, while the 75F acquisition strengthens its intelligent-building, AI-enabled controls and systems-integration capabilities, broadening its addressable markets.

Carrier currently carries a Zacks Rank #2 (Buy). The stock has lost 11.2% over the past year. Carrier has seen an upward estimate revision for 2026 EPS to $2.85 from $2.79 over the past 30 days. The estimated figure indicates 10% year-over-year growth in 2026. Carrier surpassed earnings estimates in three of the trailing four quarters and missed on the other, with the average surprise being 8.5%.

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The Zacks Building Products - Air Conditioner & Heating industry continues to benefit from several favorable trends in 2026. Rapid data center development is driving demand for specialized and energy-efficient cooling systems, while electrification and tighter efficiency standards are supporting heat pumps and other advanced HVAC solutions. Rising adoption of smart controls and connected systems, along with steady service and aftermarket demand, provides further support.

On the downside, weakness in single-family construction and cautious consumer spending continue to limit residential HVAC demand, increasing dependence on replacement activity. Tariffs, commodity and freight inflation also create cost pressures, while investments in new manufacturing capacity can weigh on margins through start-up costs and lower initial utilization. Despite these challenges, companies such as Comfort Systems USA (FIX - Free Report) , Carrier Global Corporation (CARR - Free Report) and SPX Technologies, Inc. (SPXC - Free Report)  are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.

Industry Description The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.

4 Trends Shaping the Future of the Air Conditioner & Heating Industry Data Center Boom Fuels Commercial HVAC Demand: Rapid investment in AI, cloud computing and hyperscale data centers is emerging as a major growth driver for the U.S. Air Conditioner and Heating industry. These facilities require large, reliable and energy-efficient cooling systems to manage increasingly dense computing workloads. Demand is expanding across air- and water-cooled chillers, custom air handlers, cooling towers, dry and adiabatic cooling systems and related equipment. Strong project pipelines are also encouraging manufacturers to expand production capacity and improve throughput. Importantly, hyperscale and colocation projects generally provide greater forward visibility because cooling equipment must be secured well before facilities become operational, supporting a favorable multiyear demand outlook.

Electrification, Efficiency Upgrades and Smart HVAC Drive Growth: Electrification, tighter efficiency standards and smart-building adoption are supporting U.S. HVAC industry growth in 2026. Demand for electric heat pumps, high-SEER air conditioners and low-GWP refrigerant systems is rising as customers seek lower energy use and compliance with stricter regulations. Federal and state incentives are helping offset upgrade costs, while aging equipment supports resilient replacement demand.

Meanwhile, HVAC systems are becoming more connected through intelligent controls, smart thermostats, humidification systems and actuated valves, improving efficiency, performance and operational visibility. This shift toward higher-value, connected equipment is also expanding service and aftermarket opportunities across residential and commercial markets.

Housing Weakness Limits Residential HVAC Recovery: Residential HVAC demand remains under pressure from persistent weakness in the U.S. housing market. New single-family construction continues to face challenges, while cautious consumer spending is restraining discretionary repair and remodeling activity. A meaningful recovery in residential construction is not expected in 2026, limiting demand for HVAC systems tied to new homes. Although earlier channel destocking is fading, underlying demand remains subdued and increasingly reliant on replacement activity rather than new installations. These conditions could keep residential HVAC volumes under pressure and make the segment more vulnerable to housing affordability constraints, elevated borrowing costs and continued consumer caution.

Tariffs, Inflation and Capacity Costs Pressure Margins: Cost pressures remain a key challenge for the U.S. Air Conditioner and Heating industry in 2026. Tariffs are raising costs for certain materials and components, while commodity, freight and other inflationary pressures add uncertainty to the price-cost equation. Pricing actions can offset some of these pressures, but tariff-related price increases do not necessarily translate into higher margins.

At the same time, manufacturers are rapidly expanding capacity to meet strong commercial and data center demand. New facilities and production lines can initially generate start-up costs, lower utilization and operating inefficiencies. Higher utilization, sourcing improvements and productivity gains will therefore be important for margin improvement.

Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. 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.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2026, the industry’s earnings estimates for 2026 and 2027 have increased to $5.11 per share (from $4.91) and $5.95 per share (from $5.70), respectively.

We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.

Industry Outperforms Sector, Lags S&P 500 The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector but lagged the Zacks S&P 500 Composite over the past year.

In the same time frame, the industry has gained 16.7% compared with the broader sector’s 6.5% rise. Meanwhile, the Zacks S&P 500 Composite has gained 23.4% during the period.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 23.87X compared with the S&P 500’s 20.55X and the sector’s 19.99X.

Over the past five years, the industry has traded as high as 30.77X, as low as 15.87X and at a median of 23.97X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

3 Air Conditioner and Heating Stocks to Buy Now Below, we have discussed three stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.

Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems is benefiting from strong demand across technology and other industrial markets, supported by continued data center construction and rising needs for complex mechanical and electrical infrastructure. Direct relationships with hyperscalers provide visibility into future projects, while sustained customer demand supports further expansion of its modular operations.  The company is also broadening its modular customer base through opportunities with frontier labs and colocation providers.  Strong institutional demand, disciplined project selection and skilled tradespeople further support execution. Meanwhile, the growing installed base of data centers creates a longer-term opportunity to expand recurring service and maintenance work.

 Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 142.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $45.86 from $43.05 over the past 30 days. The estimated figure indicates 58.8% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 34.6%. Again, Comfort Systems’ trailing 12-month return on equity of 53.6% is better than its peer group average of 16.9%. It has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here. .

Price and Consensus: FIX

SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies is benefiting from robust demand for data center cooling solutions, supported by hyperscaler, colocation and neocloud customers. Capacity expansions, improved production flow, lean initiatives and higher throughput are strengthening its ability to meet this demand.  The Neptronic acquisition adds another growth avenue by broadening SPX’s HVAC portfolio with intelligent controls, electric heating, humidification and actuated valves, while expanding its addressable markets.  Strong customer relationships and global distribution channels provide cross-selling opportunities. Meanwhile, healthy project activity, innovation and synergy initiatives in Detection & Measurement, along with an active acquisition pipeline, should support further growth.

SPX Technologies currently carries a Zacks Rank #2. The stock has gained 7.4% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $8.41 from $8.06 over the past 30 days. The estimated figure indicates 24.4% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 8.6%. Again, SPXC’s trailing 12-month return on equity is 16.5%.

Price and Consensus: SPXC

Carrier: Headquartered in Palm Beach Gardens, FL, Carrier provides intelligent climate and energy solutions worldwide. Carrier has been benefiting from robust commercial HVAC demand, particularly from data centers, supported by growing hyperscaler and colocation investments and capacity expansion. Growing adoption of liquid cooling provides another opportunity as AI infrastructure becomes more power intensive. The recovery in residential and light commercial HVAC, supported by replacement demand and improving channel conditions, adds momentum. In Europe, heat-pump adoption, supportive subsidies, high natural-gas prices and new product launches remain favorable. Carrier is also benefiting from expanding aftermarket opportunities, while the 75F acquisition strengthens its intelligent-building, AI-enabled controls and systems-integration capabilities, broadening its addressable markets.

Carrier currently carries a Zacks Rank #2 (Buy). The stock has lost 11.2% over the past year. Carrier has seen an upward estimate revision for 2026 EPS to $2.85 from $2.79 over the past 30 days. The estimated figure indicates 10% year-over-year growth in 2026. Carrier surpassed earnings estimates in three of the trailing four quarters and missed on the other, with the average surprise being 8.5%.

Price and Consensus: CARR

Key Takeaways Comfort Systems' first-half same-store revenues surged 47%, supporting strong 2026 growth expectations.FIX's backlog reached $14.1B, up 73%, with technology customers accounting for 58% of first-half revenues.Modular capacity is expected to reach about 5 million square feet by late summer 2027. Comfort Systems USA, Inc. (FIX - Free Report) appears poised to carry strong momentum into 2027, supported by robust demand, record backlog and expanding capacity. The company’s second-quarter 2026 performance highlighted the strength of its growth engine, with same-store revenues jumping 44% year over year. For the first six months of 2026, same-store revenues increased 47%, prompting management to expect full-year 2026 same-store growth in the mid- to high-30% range.

A key catalyst is Comfort Systems’ record backlog, which reached $14.1 billion at the end of the second quarter of 2026, up 73% year over year, while same-store backlog rose 69%. Technology demand remained particularly strong, accounting for 58% of first-half revenues compared with 40% a year ago. Industrial customers represented 75% of revenues, providing additional support for the project pipeline.

The company is also expanding its Modular operations to capitalize on sustained customer demand. Modular capacity is expected to exceed 4 million square feet by year-end and reach approximately 5 million square feet by late summer 2027. Management noted that expansion is being supported by customer volume commitments, reducing the risk associated with capacity investments. However, maintaining such elevated growth will become more challenging against increasingly difficult comparisons, particularly in the second half of 2026. Management acknowledged that upcoming quarters will face heavy year-over-year comparisons.

Overall, Comfort Systems’ strong backlog, technology exposure, Modular expansion and healthy demand position it well for continued growth. Still, the pace may moderate as comparisons toughen.

Comfort Systems, Carrier Global & AAON: Cooling Into a New Era?Comfort Systems stands out among Carrier Global Corporation (CARR - Free Report) and AAON, Inc. (AAON - Free Report) for its direct exposure to large-scale infrastructure projects, supported by a record $14.1 billion backlog, up 73% year over year.

AAON is also benefiting from surging data-center demand, with the second-quarter backlog near $2 billion and BASX backlog up 185% year over year, driven by custom-engineered cooling solutions. Carrier Global offers a broader HVAC portfolio and benefits from commercial HVAC, energy-efficiency and aftermarket opportunities.

FIX’s project execution and modular capabilities provide greater exposure to the infrastructure boom, while AAON leverages specialized cooling technology and Carrier Global gains from diversification and recurring service demand.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have climbed 20% 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 the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.73, 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 30 days to $45.86 and $57.81 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 58.8% and 26.1%, 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.

From a technical perspective, Comfort Systems (FIX - Free Report) is looking like an interesting pick, as it just reached a key level of support. FIX recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

FIX has rallied 9.9% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests FIX could be on the verge of another move higher.

The bullish case solidifies once investors consider FIX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on FIX for more gains in the near future.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Comfort Systems (FIX - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this heating, ventilation and air conditioning company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Comfort Systems is 66.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 60.6% this year, crushing the industry average, which calls for EPS growth of 10.2%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Comfort Systems is 74.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of -0.2%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 42.5% over the past 3-5 years versus the industry average of 14.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Comfort Systems. The Zacks Consensus Estimate for the current year has surged 7.8% over the past month.

Bottom LineComfort Systems has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

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

This combination indicates that Comfort Systems is a potential outperformer and a solid choice for growth investors.

Key Takeaways Comfort Systems' backlog rose 73% year over year to a record $14.1 billion at the end of Q2.Technology drove strong bookings, while Industrial customers accounted for 75% of first-half revenues.Comfort Systems booked $510 million of Modular work as capacity expands toward 5 million square feet.
Comfort Systems USA, Inc. (FIX - Free Report) enters the second half of 2026 with a record backlog that provides a strong base for future revenues. Backlog reached $14.1 billion at the end of the second quarter, up $5.9 billion, or 73%, from a year ago. On a sequential basis, backlog increased $1.6 billion, or 13%, with $1.4 billion of the increase coming from same-store operations.

The backlog expansion is supported by strong demand across key markets. Technology drove especially strong bookings during the quarter, while Industrial customers accounted for 75% of revenues in the first half of 2026. Technology alone represented 58% of revenues, up from 40% a year earlier. Same-store backlog entering the third quarter was also 69% higher than a year ago, reinforcing the depth of contracted work heading into the second half.

Construction remains the largest source of revenues, accounting for 90% of the first-half total. Modular operations are also adding to the order base, supported by demand from existing customers. The company booked $510 million of Modular work during the second quarter, while capacity is expected to rise from more than 3.5 million square feet currently to over 4 million by year-end and approximately 5 million by late summer 2027.

This backlog strength provides Comfort Systems with greater visibility into future activity while demand remains strong across Technology and other Industrial markets. With a larger contracted work base and expanding capacity tied to customer demand, the record backlog could support revenue growth through the remainder of 2026 and into 2027.

Comfort Systems vs. Its Closest Engineering RivalsComfort Systems competes closely with EMCOR Group (EME - Free Report) and Quanta Services (PWR - Free Report) across large-scale construction, electrical and mechanical contracting and infrastructure projects. Both companies maintain sizable order books, providing visibility into future revenues and reflecting strong demand across key end markets.

EMCOR has built strong revenue visibility through record Remaining Performance Obligations, or RPOs. RPOs reached $17.14 billion at the end of the second quarter, up 44% year over year and 10% sequentially. About 95% of the increase was organic. Network and communications, led by data center activity, remained a major source of demand. Strong bookings in water and wastewater, health care and institutional markets also broadened the RPO base.

Quanta reported a record backlog of approximately $53.4 billion in the second quarter, up about 49% year over year from $35.8 billion. The order book reflects demand across utility, generation and technology load center markets. Larger programs and multiyear commitments are also developing across these markets, which could support revenues over an extended period. Recent acquisitions have added capabilities across electrical, mechanical, civil and fabrication services, further broadening the addressable market.

Both EMCOR and Quanta offer strong revenue visibility through sizable order books. EMCOR benefits from broad-based RPO growth and strong data center demand, while Quanta's backlog is supported by large, multiyear programs across utility and technology markets.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 86.3% year to date, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

FIX 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 32.97, 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 and 2027 have moved upward in the past 30 days to $46.38 and $57.81 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 60.6% and 24.7%, respectively.

Image Source: Zacks Investment Research

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

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Comfort Systems (FIX - Free Report) .

Comfort Systems currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.

Of the 12 recommendations that derive the current ABR, 10 are Strong Buy, representing 83.3% 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.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

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.

Is FIX a Good Investment?Looking at the earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 7.8% over the past month to $46.38.

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 Comfort Systems lifted gross margin to 25.9% and operating margin to 17.1% in the second quarter.A record $14.1 billion backlog, up 73%, supports revenue visibility and selective project bidding.FIX benefits from strong demand in technology infrastructure, modular construction and data centers. Comfort Systems USA (FIX - Free Report) has consistently distinguished itself through superior execution, and its second-quarter 2026 results suggest that margin expansion remains a core competitive advantage rather than a temporary phenomenon. Gross margin improved 240 basis points year over year to 25.9%, while operating margin expanded to 17.1% from 13.8%. Adjusted EBITDA margin also increased to 18.4%, reflecting a combination of disciplined project selection, pricing strength and operational excellence.

The company's execution has been broad-based. Mechanical segment gross margin rose to 25.6% from 22.9% a year ago, while Electrical segment margin improved to 26.4% from 25.3%. Management noted that excluding unusual gains recognized in the first quarter, second-quarter gross margin actually improved sequentially from 25.2% to 25.9%, highlighting that underlying profitability continues to strengthen. It also expects gross margins to remain within the strong range achieved in recent quarters.

Several structural factors support this outlook. Demand remains exceptionally strong in technology infrastructure and modular construction, where Comfort Systems continues to secure projects with attractive pricing and favorable working conditions. The company ended the quarter with a record $14.1 billion backlog, up 73% year over year, providing excellent revenue visibility and allowing management to remain selective when bidding projects. Meanwhile, SG&A declined as a percentage of revenue to 8.8% despite continued investments in people and innovation, demonstrating meaningful operating leverage.

While labor availability, material inflation and execution risks remain industry-wide challenges, Comfort Systems' pricing discipline, experienced workforce and exposure to mission-critical projects position it well to sustain industry-leading margins over the foreseeable future.

Comfort Systems vs. Its Closest Engineering RivalsComfort Systems competes closely with EMCOR Group (EME - Free Report) and Quanta Services (PWR - Free Report) across mission-critical construction, electrical and mechanical contracting and large-scale infrastructure projects.

EMCOR has consistently demonstrated strong execution and healthy margins, supported by its diversified portfolio spanning industrial, network and facility services. However, EMCOR has relatively broader end-market exposure, while Comfort Systems benefits from a greater concentration in fast-growing data centers, AI infrastructure and modular construction, which currently command attractive pricing and support higher profitability. EMCOR also has a smaller presence in modular manufacturing, an area where Comfort Systems continues to expand aggressively.

Quanta, meanwhile, derives much of its revenues from electric transmission, utility infrastructure and renewable energy projects. Although Quanta benefits from the long-term electrification trend, its project mix generally carries lower margins than Comfort Systems' technology-driven mechanical and electrical construction business. Quanta also has less exposure to factory-built modular solutions that are becoming increasingly important in AI and hyperscale data center development. While both EMCOR and Quanta remain high-quality engineering contractors, Comfort Systems' disciplined bidding, exceptional project execution and favorable customer mix provide a stronger foundation for sustaining industry-leading margins.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 90.3% year to date, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

FIX 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 33.83, 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 and 2027 have moved upward in the past 30 days to $45.48 and $57.27 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 57.5% and 25.9%, respectively.
 

Image Source: Zacks Investment Research

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

Anderson Hoagland & Co. trimmed its position in shares of Comfort Systems USA, Inc. (NYSE:FIX – Free Report) by 28.7% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,328 shares of the construction company’s stock after selling 1,745 shares during the quarter. Anderson Hoagland & Co.’s holdings in Comfort Systems USA were worth $8,578,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in FIX. Versant Capital Management Inc raised its stake in Comfort Systems USA by 6.6% during the 2nd quarter. Versant Capital Management Inc now owns 177 shares of the construction company’s stock worth $351,000 after buying an additional 11 shares during the period. CX Institutional grew its stake in Comfort Systems USA by 65.6% in the second quarter. CX Institutional now owns 53 shares of the construction company’s stock valued at $105,000 after acquiring an additional 21 shares during the period. First Financial Bank Trust Division acquired a new position in Comfort Systems USA in the second quarter valued at about $2,386,000. Eastern Bank bought a new stake in shares of Comfort Systems USA in the second quarter worth about $99,000. Finally, Basecamp Wealth Advisors LLC increased its holdings in shares of Comfort Systems USA by 28.5% in the first quarter. Basecamp Wealth Advisors LLC now owns 167 shares of the construction company’s stock worth $230,000 after acquiring an additional 37 shares in the last quarter. Institutional investors and hedge funds own 96.51% of the company’s stock.

Insider Buying and Selling at Comfort Systems USA In other news, Director Rhoman J. Hardy sold 342 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $1,900.08, for a total transaction of $649,827.36. Following the completion of the transaction, the director directly owned 1,890 shares in the company, valued at $3,591,151.20. This represents a 15.32% decrease in their position. The transaction 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 stock in a transaction dated 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 transaction, the director owned 62,115 shares of the company’s stock, valued at approximately $121,401,904.05. This represents a 9.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 17,665 shares of company stock worth $34,366,397. Company insiders own 1.24% of the company’s stock.

Comfort Systems USA Stock Up 0.3% NYSE:FIX opened at $1,776.37 on Wednesday. The stock has a 50-day simple moving average of $1,814.67 and a 200 day simple moving average of $1,605.04. Comfort Systems USA, Inc. has a 52-week low of $655.96 and a 52-week high of $2,073.99. The company has a market cap of $62.51 billion, a PE ratio of 43.69 and a beta of 1.69. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.19 and a current ratio of 1.21.

Comfort Systems USA (NYSE:FIX – Get Free Report) last released its earnings results on Thursday, July 23rd. The construction company reported $12.53 EPS for the quarter, beating the consensus estimate of $10.45 by $2.08. The firm 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%.The business’s quarterly revenue was up 50.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $6.53 EPS. On average, sell-side analysts expect that Comfort Systems USA, Inc. will post 46.77 EPS for the current fiscal year.

Comfort Systems USA Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Thursday, August 13th will be issued a dividend of $0.90 per share. The ex-dividend date is Thursday, August 13th. This is a positive change from Comfort Systems USA’s previous quarterly dividend of $0.80. This represents a $3.60 annualized dividend and a yield of 0.2%. Comfort Systems USA’s dividend payout ratio is currently 7.87%.

Analyst Upgrades and Downgrades Several research firms have recently weighed in on FIX. Stifel Nicolaus set a $1,910.00 price objective on Comfort Systems USA in a report on Monday, July 27th. Weiss Ratings reissued a “buy (b)” rating on shares of Comfort Systems USA in a research note on Friday, July 17th. Oppenheimer started coverage on shares of Comfort Systems USA in a report on Thursday, May 28th. They set an “outperform” rating and a $2,200.00 target price on the stock. Glj Research initiated coverage on shares of Comfort Systems USA in a research note on Monday, April 20th. They issued a “buy” rating and a $2,001.00 price target on the stock. Finally, UBS Group upped their price target on shares of Comfort Systems USA from $2,125.00 to $2,225.00 and gave the company a “buy” rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, Comfort Systems USA presently has an average rating of “Buy” and an average target price of $2,057.86.

Get Our Latest Stock Analysis on FIX

About Comfort Systems USA (Free Report)

Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.

Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.

Further Reading Five stocks we like better than Comfort Systems USA System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter 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).

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Key Takeaways Comfort Systems leads on execution, margin expansion, cash generation and backlog growth.MYR Group benefits from grid modernization, data centers and strategic electrical acquisitions.Comfort Systems' stronger estimate revisions and growth outlook support its premium valuation. The electrification investment cycle continues to reshape the construction and engineering industry, creating significant opportunities for companies involved in electrical infrastructure, mission-critical facilities and grid modernization. As utilities expand transmission networks, data center construction accelerates and industrial customers invest in power-intensive facilities, contractors with specialized capabilities are benefiting from strong demand and expanding backlogs. Comfort Systems USA (FIX - Free Report) and MYR Group (MYRG - Free Report) are two well-positioned beneficiaries of these long-term trends.

While Comfort Systems has evolved into a leading provider of mechanical, electrical and modular construction services for mission-critical projects, MYR Group remains one of North America's premier electrical infrastructure contractors serving both utility and commercial markets. Both companies recently reported strong quarterly results, making this an appropriate time to compare their long-term investment potential.

Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Comfort Systems StockComfort Systems continues to distinguish itself as one of the strongest execution stories in the construction and engineering industry. Its second-quarter 2026 performance demonstrated broad-based strength, supported by exceptional execution, sustained demand from technology customers, expanding electrical operations and growing modular construction capabilities.

Management highlighted continued strength in data center construction, while industrial customers remained the primary growth engine. Strong project execution also translated into expanding profitability, robust cash generation and another record backlog, providing excellent visibility into future revenues. The recent Hunt Electric acquisition further strengthens the company's electrical contracting platform while expanding its geographic reach.

Comfort Systems is also benefiting from favorable industry dynamics beyond traditional HVAC contracting. Technology projects now represent the largest portion of its revenue mix, while modular construction continues to gain traction as customers seek faster project delivery. Management expects these markets to remain healthy well into 2027, supported by historically strong project pipelines and expanding manufacturing capacity for modular solutions. Combined with its decentralized operating model, disciplined project selection and strong balance sheet, the company appears well-positioned to capitalize on continued infrastructure spending.

The primary challenge is valuation. Investors have already rewarded the company for its outstanding execution, leaving less room for disappointment if project activity moderates or margins normalize. Continued rapid expansion also requires effective labor management and successful integration of acquisitions to sustain current profitability levels.

The Case for MYR Group StockMYR Group offers investors direct exposure to one of the strongest long-term infrastructure themes: electric grid modernization. Utilities continue investing heavily in transmission, substations and distribution networks as electricity demand rises from artificial intelligence, electrification and renewable energy integration. At the same time, MYR's Commercial & Industrial business is benefiting from growing demand across data centers, manufacturing, clean energy and transportation infrastructure.

The company's second-quarter 2026 results reflected healthy execution across both operating segments. Commercial & Industrial delivered particularly strong momentum, supported by fixed-price project activity, while Transmission & Distribution continued to benefit from utility infrastructure investments. Productivity improvements, favorable project closeouts and disciplined execution supported higher profitability. Record backlog, healthy bidding activity and the acquisition of Valley Electric and Comet Electric further strengthen MYR's growth outlook by expanding both its capabilities and geographic footprint.

Management also emphasized that utilities continue prioritizing long-term transmission and distribution investments as electricity demand increases. Recent large project awards across transmission and substations reinforce MYR's competitive positioning, while its balanced exposure to utility and commercial markets reduces dependence on any single end market.

Nevertheless, MYR faces greater earnings variability than Comfort Systems because a larger portion of its business depends on project timing, customer spending decisions and execution across large utility contracts. While management remains optimistic, its revenue growth outlook is comparatively more moderate, and margin expansion is likely to remain more incremental than that of Comfort Systems.

Market Performance Shows Strong Investor ConfidenceBoth companies have significantly outperformed the broader market this year, reflecting investors' enthusiasm toward electrification and infrastructure spending. Comfort Systems has been the clear leader, with shares surging 81.9% year to date (YTD), well ahead of MYR Group's 51.4% gain and the Zacks S&P 500 Composite's 6.7% increase.

FIX vs MYRG Price Performance (YTD)

Image Source: Zacks Investment Research

Among other electrification and engineering contractors, Quanta Services (PWR - Free Report) has gained 55.9% YTD, while EMCOR Group (EME - Free Report) has rallied 31.2%. Although both peers have delivered solid returns, Comfort Systems continues to lead the group, reflecting investor confidence in its exceptional execution, expanding technology exposure and accelerating earnings growth.

Premium Multiple Reflects Superior GrowthComfort Systems trades at a forward 12-month P/E multiple of 34.79X, noticeably above MYR Group's 26.92X. At first glance, MYR appears more attractively valued.

However, the premium assigned to Comfort Systems appears justified given its faster earnings growth, stronger cash generation, expanding margins and significantly larger backlog growth. Investors are willing to pay a higher multiple because the company has consistently converted strong end-market demand into superior profitability.

FIX vs MYRG Valuation (P/E F12M)

Image Source: Zacks Investment Research

Compared with other infrastructure contractors, Comfort Systems trades above EMCOR, which is valued at 25.52X forward earnings, but below Quanta at 42.57X. This places Comfort Systems in the middle of the peer group, suggesting the market recognizes its superior growth profile while still assigning the highest premium to Quanta's utility and energy infrastructure franchise.

Earnings Estimate Trends Favor Comfort SystemsAnalyst revisions further reinforce the difference between the two companies. During the past seven days, the consensus estimate for Comfort Systems have moved sharply higher, with 2026 earnings per share (EPS) increasing from $43.09 to $45.48 and 2027 EPS rising from $52.93 to $57.27. Analysts currently expect 57.5% earnings growth in 2026, followed by another 25.9% increase in 2027, supported by strong revenue expansion.

FIX Estimate Revision Trend

Image Source: Zacks Investment Research

MYR Group's estimate trend has been comparatively stable. The 2026 EPS estimate has remained unchanged over the past 30 days at $11.43, while the 2027 estimate increased modestly from $12.48 to $12.91. Earnings are projected to grow 51.8% in 2026 before moderating to 13% growth in 2027.

MYRG Estimate Revision Trend

Image Source: Zacks Investment Research

The stronger upward revisions for Comfort Systems indicate greater analyst confidence in the company's near-term earnings trajectory.

Which Stock Is the Better Buy?Both companies remain attractive ways to participate in the long-term electrification theme. MYR Group offers solid exposure to transmission infrastructure, utility modernization and commercial electrical construction, supported by record backlog, strategic acquisitions and favorable industry fundamentals. However, its earnings outlook appears more moderate, and it currently carries a Zacks Rank #3 (Hold).

Comfort Systems stands out because it combines exceptional operational execution with stronger margin expansion, rapidly growing technology and modular construction exposure, record backlog, outstanding cash generation and more favorable earnings estimate revisions. These strengths are reflected in its Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Although FIX trades at a higher valuation, its superior growth profile, stronger execution and improving earnings outlook justify that premium. For investors seeking the best combination of growth, profitability and long-term upside in the electrification space, Comfort Systems appears to be the better investment today.

Comfort Systems (FIX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this heating, ventilation and air conditioning company have returned -18.5% over the past month versus the Zacks S&P 500 composite's -1.5% change. The Zacks Building Products - Air Conditioner and Heating industry, to which Comfort Systems belongs, has lost 20.1% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Comfort Systems is expected to post earnings of $11.88 per share, indicating a change of +44% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $45.48 points to a change of +57.5% from the prior year. Over the last 30 days, this estimate has changed +7.8%.

For the next fiscal year, the consensus earnings estimate of $57.27 indicates a change of +25.9% from what Comfort Systems is expected to report a year ago. Over the past month, the estimate has changed +8.9%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Comfort Systems is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Comfort Systems, the consensus sales estimate for the current quarter of $3.19 billion indicates a year-over-year change of +30.3%. For the current and next fiscal years, $12.43 billion and $14.9 billion estimates indicate +36.6% and +19.9% changes, respectively.

Last Reported Results and Surprise HistoryComfort Systems reported revenues of $3.27 billion in the last reported quarter, representing a year-over-year change of +50.3%. EPS of $12.53 for the same period compares with $6.53 a year ago.

Compared to the Zacks Consensus Estimate of $2.94 billion, the reported revenues represent a surprise of +10.96%. The EPS surprise was +20.71%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Comfort Systems is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Comfort Systems. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Comfort Systems (FIX - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this heating, ventilation and air conditioning company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Comfort Systems is 66.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 57.5% this year, crushing the industry average, which calls for EPS growth of 7.6%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Comfort Systems is 74.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of -0.2%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 42.5% over the past 3-5 years versus the industry average of 14.3%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Comfort Systems have been revising upward. The Zacks Consensus Estimate for the current year has surged 7.8% over the past month.

Bottom LineComfort Systems has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

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

This combination indicates that Comfort Systems is a potential outperformer and a solid choice for growth investors.

A downtrend has been apparent in Comfort Systems (FIX - Free Report) lately. While the stock has lost 8.3% over the past week, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.

While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this heating, ventilation and air conditioning company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.

What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Increases the Odds of a Turnaround for FIXThere has been an upward trend in earnings estimate revisions for FIX lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.

Over the last 30 days, the consensus EPS estimate for the current year has increased 7.8%. What it means is that the sell-side analysts covering FIX are majorly in agreement that the company will report better earnings than they predicted earlier.

If this is not enough, you should note that FIX currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, a Zacks Rank of 1 for Comfort Systems is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.

Key Takeaways FIX's Q2 earnings jumped 91.9% and revenue rose 50.3%, both beating consensus estimates.Backlog climbed 73% to $14.06 billion, while technology projects reached 58.7% of Q2 revenues.A 35.51X forward P/E and tougher comparisons raise the stakes for sustained growth and execution. Comfort Systems USA, Inc. (FIX - Free Report) remains a difficult stock to dismiss after another quarter of sharp growth and operational execution.

The debate is no longer about whether the business is performing well. It is whether the valuation already discounts much of that performance after a major 2026 rally.

FIX Delivers Another Earnings and Revenue BeatComfort Systems reported second-quarter 2026 earnings of $12.53 per share, topping the Zacks Consensus Estimate by 20.7%. Earnings rose 91.9% from $6.53 a year earlier.

Revenues of $3.27 billion exceeded the consensus mark by 11% and increased 50.3% year over year. That scale of upside explains why investor expectations have moved higher.

Comfort Systems Supports a Premium ValuationThe premium case rests on record activity, technology demand, expanding modular capacity and stronger margins. Backlog reached $14.06 billion at June 30, 2026, up 73% year over year.

The balance sheet also supports the story. Comfort Systems ended June 2026 with $1.85 billion in cash, roughly $54 million of total debt and $1.53 billion of operating cash flow for the first half.

FIX Valuation Leaves Less Room for ErrorFIX trades at 35.51X forward 12-month earnings, above 27.9X for its sub-industry, 20.66X for its sector and 20.11X for the S&P 500.

That multiple is also well above its five-year median of 22.67X. The $1,834 price target offers only modest upside from the reported $1,730.42 share price.

Comfort Systems Must Clear High ExpectationsThe Zacks Consensus Estimate calls for 2026 revenues of $12.42 billion and earnings of $43.09 per share. Those figures imply growth of 36.5% and 49.2%, respectively.

The risk is execution. Tougher second-half comparisons, slower backlog conversion or weaker incremental margins could pressure the shares, while elevated capital spending and labor constraints raise the operating threshold.

FIX Offers Growth With Concentration RiskTechnology customers represented 58.7% of second-quarter revenues, up from 43% a year earlier. New construction accounted for 75.1% of revenues, underscoring the company’s exposure to large capital projects.

This mix supports growth but increases sensitivity to data center capital budgets, customer schedules, power availability and large-customer spending cycles. Delays can matter even when underlying demand remains favorable.

EMCOR Group, Inc. (EME - Free Report) provides a relevant industry comparison because it also operates in mechanical and electrical construction services and serves mission-critical data center markets. Quanta Services, Inc. (PWR - Free Report) is another useful reference point for investors following infrastructure demand tied to electric power and communications networks.

Comfort Systems Scores Favor SelectivityThe bottom line is that Comfort Systems still offers a strong operating profile, but the stock price leaves less margin for disappointment. Growth remains the clearest part of the story, while valuation and execution risk argue for selectivity.

FIX currently carries a Zacks Rank #3 (Hold), supporting a neutral near-term stance rather than an aggressive entry signal. The Growth Score of A and VGM Score of B point to favorable growth and combined style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Value Score of D sends a different message. For investors drawn to FIX’s earnings momentum, price discipline remains important after the stock’s sharp advance.

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Comfort Systems USA (NYSE:FIX) reported second-quarter 2026 revenue above $3 billion for the first time, as demand from technology and industrial customers helped drive higher bookings, record backlog and sharply improved profitability.

Chief Executive Officer Brian Lane said the company generated $3.3 billion in quarterly revenue and earned $12.53 per share, a 92% increase from the prior-year period. The company’s backlog reached a record $14.1 billion at quarter-end, supported by continued technology-sector demand and favorable project margins.

“We had a fantastic quarter with amazing execution by our teams,” Lane said. “Demand remains strong, especially in technology, as we continue to book work with good margins and favorable working conditions for our valuable people.”

Revenue, Profit and Cash Flow Rise Chief Financial Officer Bill George said second-quarter revenue increased by $1.1 billion from a year earlier, with same-store revenue up 44%. Electrical-segment revenue rose 81%, while mechanical-segment revenue increased 40%.

For the first six months of 2026, same-store revenue grew 47%. The company expects full-year same-store revenue growth to finish in the mid- to high-30% range, George said.

Gross profit increased to $844 million from $510 million in the second quarter of 2025, while gross margin expanded to 25.9% from 23.5%. Mechanical gross margin rose to 25.6% from 22.9%, and electrical gross margin increased to 26.4% from 25.3%.

SG&A expense increased to $287 million from $210 million as the company invested in personnel and innovation, though SG&A as a percentage of revenue declined to 8.8% from 9.7%. Operating income rose 86% to $558 million, and operating margin increased to 17.1% from 13.8%.

Net income was $442 million, or $12.53 per share, compared with $231 million, or $6.53 per share, a year earlier. EBITDA increased 80% to $600 million, bringing trailing 12-month EBITDA to approximately $2 billion.

Free cash flow totaled $999 million in the quarter. George attributed the result partly to advanced customer cash, strong payment terms and broad-based project performance, rather than a single factor. He said the company expects cash flow over time to align with net income plus noncash expenses.

The company ended the quarter with a net cash position of more than $1.8 billion, despite acquisition spending and capital investments. It expects capital expenditures for the full year to equal approximately 5% of revenue, primarily supporting production facilities and modular capacity.

Backlog Expands as Technology Work Drives Demand President Trent McKenna said backlog increased by $1.6 billion sequentially, including a $1.4 billion same-store increase. Compared with a year earlier, total backlog increased $5.9 billion, or 73%, with $5.6 billion of the gain coming from same-store operations.

Same-store backlog entering the third quarter was 69% higher than a year earlier. McKenna said project pipelines remained at historically high levels, led by technology-sector construction and modular work.

Industrial customers accounted for 75% of first-half revenue. Technology, which is included within industrial, represented 58% of revenue, up from 40% in the prior year. Institutional markets, including education, healthcare and government, represented 17% of revenue. Commercial markets accounted for 8% of revenue. Construction represented 90% of revenue, while service represented 10%. New-building construction accounted for 75% of total revenue, including modular activity, while existing-building construction represented 15%. Modular revenue represented 17% of year-to-date revenue.

During the quarter, modular operations booked $510 million, enough to cover the business’s production activity and add roughly $500 million to backlog, according to George. The company said demand from customers remains consistent with its plans to expand modular manufacturing capacity.

Modular Capacity Plans Tied to Customer Commitments Comfort Systems USA has more than 3.5 million square feet of capacity dedicated to modular operations and expects to exceed 4 million square feet in production by year-end. It plans to reach approximately 5 million square feet of capacity by late summer 2027.

Management said the planned capacity expansion is principally intended to serve existing customers and existing orders. The company is pursuing pilot contracts with frontier labs and colocation providers, but said meaningful programmatic business from those newer customers would require additional manufacturing space.

George said the company will not add buildings solely on speculation and will expand only when customers provide meaningful multiyear commitments. He said recent capital investments have generated rapid returns, with projects producing what he described as full paybacks within one or two years.

Management said it does not see a slowdown in data-center demand despite public opposition and moratorium discussions in some markets. Lane said the company’s direct relationships with hyperscalers and key intermediaries provide visibility into customer plans, and that management sees “no letdown whatsoever” in their need to continue building capacity.

McKenna said much of the company’s current backlog consists of projects that were already planned and permitted. He added that modular capacity is more programmatic and can be directed toward customer locations as needed.

Acquisition and Capital Allocation The company also discussed its acquisition of Hunt Electric, a Utah-based electrical contractor that closed May 1. Lane said Hunt is expected to contribute approximately $250 million in annualized revenue.

McKenna said Hunt has begun pursuing opportunities jointly with Comfort Systems USA’s mechanical contractors in Utah and called it the premier electrical provider in that market.

Comfort Systems USA increased its quarterly dividend by $0.10 to $0.90 per share. George said capital allocation will continue to include investments in facilities, selective share repurchases and a patient approach to acquisitions.

Management also highlighted the longer-term service opportunity created by its growing data-center installed base. McKenna said service revenue increased 7% during the year and remains profitable, though the data-center service opportunity is expected to develop over time as newly constructed facilities move beyond warranty periods.

About Comfort Systems USA (NYSE:FIX) Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.

Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.

These 3 Cash-Flow Stocks Give Investors More Than Just Growth PotentialComfort Systems USA NYSE: FIX reported second-quarter 2026 revenue above $3 billion for the first time, as demand from technology and industrial customers helped drive higher bookings, record backlog and sharply improved profitability.

Chief Executive Officer Brian Lane said the company generated $3.3 billion in quarterly revenue and earned $12.53 per share, a 92% increase from the prior-year period. The company’s backlog reached a record $14.1 billion at quarter-end, supported by continued technology-sector demand and favorable project margins.

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Industrials Are Leading in 2026, But These ETFs Take Different Routes“We had a fantastic quarter with amazing execution by our teams,” Lane said. “Demand remains strong, especially in technology, as we continue to book work with good margins and favorable working conditions for our valuable people.”

Revenue, Profit and Cash Flow Rise Chief Financial Officer Bill George said second-quarter revenue increased by $1.1 billion from a year earlier, with same-store revenue up 44%. Electrical-segment revenue rose 81%, while mechanical-segment revenue increased 40%.

3 Infrastructure Stocks Fueling the Data Center Building BoomFor the first six months of 2026, same-store revenue grew 47%. The company expects full-year same-store revenue growth to finish in the mid- to high-30% range, George said.

Gross profit increased to $844 million from $510 million in the second quarter of 2025, while gross margin expanded to 25.9% from 23.5%. Mechanical gross margin rose to 25.6% from 22.9%, and electrical gross margin increased to 26.4% from 25.3%.

SG&A expense increased to $287 million from $210 million as the company invested in personnel and innovation, though SG&A as a percentage of revenue declined to 8.8% from 9.7%. Operating income rose 86% to $558 million, and operating margin increased to 17.1% from 13.8%.

Net income was $442 million, or $12.53 per share, compared with $231 million, or $6.53 per share, a year earlier. EBITDA increased 80% to $600 million, bringing trailing 12-month EBITDA to approximately $2 billion.

Free cash flow totaled $999 million in the quarter. George attributed the result partly to advanced customer cash, strong payment terms and broad-based project performance, rather than a single factor. He said the company expects cash flow over time to align with net income plus noncash expenses.

The company ended the quarter with a net cash position of more than $1.8 billion, despite acquisition spending and capital investments. It expects capital expenditures for the full year to equal approximately 5% of revenue, primarily supporting production facilities and modular capacity.

Backlog Expands as Technology Work Drives Demand President Trent McKenna said backlog increased by $1.6 billion sequentially, including a $1.4 billion same-store increase. Compared with a year earlier, total backlog increased $5.9 billion, or 73%, with $5.6 billion of the gain coming from same-store operations.

Same-store backlog entering the third quarter was 69% higher than a year earlier. McKenna said project pipelines remained at historically high levels, led by technology-sector construction and modular work.

Industrial customers accounted for 75% of first-half revenue. Technology, which is included within industrial, represented 58% of revenue, up from 40% in the prior year. Institutional markets, including education, healthcare and government, represented 17% of revenue. Commercial markets accounted for 8% of revenue. Construction represented 90% of revenue, while service represented 10%. New-building construction accounted for 75% of total revenue, including modular activity, while existing-building construction represented 15%. Modular revenue represented 17% of year-to-date revenue.

During the quarter, modular operations booked $510 million, enough to cover the business’s production activity and add roughly $500 million to backlog, according to George. The company said demand from customers remains consistent with its plans to expand modular manufacturing capacity.

Modular Capacity Plans Tied to Customer Commitments Comfort Systems USA has more than 3.5 million square feet of capacity dedicated to modular operations and expects to exceed 4 million square feet in production by year-end. It plans to reach approximately 5 million square feet of capacity by late summer 2027.

Management said the planned capacity expansion is principally intended to serve existing customers and existing orders. The company is pursuing pilot contracts with frontier labs and colocation providers, but said meaningful programmatic business from those newer customers would require additional manufacturing space.

George said the company will not add buildings solely on speculation and will expand only when customers provide meaningful multiyear commitments. He said recent capital investments have generated rapid returns, with projects producing what he described as full paybacks within one or two years.

Management said it does not see a slowdown in data-center demand despite public opposition and moratorium discussions in some markets. Lane said the company’s direct relationships with hyperscalers and key intermediaries provide visibility into customer plans, and that management sees “no letdown whatsoever” in their need to continue building capacity.

McKenna said much of the company’s current backlog consists of projects that were already planned and permitted. He added that modular capacity is more programmatic and can be directed toward customer locations as needed.

Acquisition and Capital Allocation The company also discussed its acquisition of Hunt Electric, a Utah-based electrical contractor that closed May 1. Lane said Hunt is expected to contribute approximately $250 million in annualized revenue.

McKenna said Hunt has begun pursuing opportunities jointly with Comfort Systems USA’s mechanical contractors in Utah and called it the premier electrical provider in that market.

Comfort Systems USA increased its quarterly dividend by $0.10 to $0.90 per share. George said capital allocation will continue to include investments in facilities, selective share repurchases and a patient approach to acquisitions.

Management also highlighted the longer-term service opportunity created by its growing data-center installed base. McKenna said service revenue increased 7% during the year and remains profitable, though the data-center service opportunity is expected to develop over time as newly constructed facilities move beyond warranty periods.

About Comfort Systems USA (NYSE:FIX)Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.

Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.

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].

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Comfort Systems (FIX - Free Report) came out with quarterly earnings of $12.53 per share, beating the Zacks Consensus Estimate of $10.38 per share. This compares to earnings of $6.53 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +20.71%. A quarter ago, it was expected that this heating, ventilation and air conditioning company would post earnings of $7.19 per share when it actually produced earnings of $10.51, delivering a surprise of +46.18%.

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 $3.27 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.96%. This compares to year-ago revenues of $2.17 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 91.9% since the beginning of the year versus the S&P 500's gain of 9.6%.

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 $10.79 on $2.98 billion in revenues for the coming quarter and $43.09 on $11.89 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 top 20% 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.

Another stock from the same industry, Carrier Global (CARR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28.

This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -9.8%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.

Carrier Global's revenues are expected to be $6.02 billion, down 1.5% from the year-ago quarter.