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.
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Key Takeaways FIX beat Q2 earnings and revenue estimates as results surged year over year on strong end-market demand.Comfort Systems reported record backlog of $14.06 billion, up 73.2% year over year.FIX expanded margins, strengthened cash flow and reduced long-term debt while returning cash to shareholders. Comfort Systems USA, Inc. (FIX - Free Report) delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year.
The quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing the company’s confidence in the business momentum.
FIX’s Q2 DiscussionThe company reported earnings per share of $12.53, which topped the Zacks Consensus Estimate of $10.38 by 20.7% and increased 91.9% from $6.53 reported in the year-ago quarter.
Revenues of $3.27 billion also surpassed the consensus mark of $2.94 billion by 10.96% and rose 50.3% from $2.17 billion generated in the prior-year quarter.
Comfort Systems Sees Broad-Based Segment GrowthComfort Systems generated Mechanical segment revenues of $2.30 billion in the second quarter, up 40.1% from the prior-year quarter. The Electrical segment's revenues climbed 81.2% year over year to $969 million, reflecting strong demand across electrical contracting operations and contributions from acquisitions.
Customer mix continued to underscore the dominance of technology-related work. Technology customers represented 58.7% of second-quarter consolidated revenues, followed by manufacturing at 16.4%, healthcare at 7.1%, education at 5.1% and government at 4.4%.
Activity type also highlighted where project activity remained concentrated. New construction accounted for 75.1% of revenues, while existing building construction contributed 14.8%. Service projects represented 4.4% of revenues, and service calls, maintenance and monitoring comprised the remaining 5.7%, reinforcing the company's continued emphasis on large construction projects.
FIX Backlog Rises as Demand Stays RobustBacklog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period.
The mix continued to skew toward the Mechanical segment, which represented 71.5% of total backlog ($10.06 billion), while the Electrical segment contributed 28.5% ($4 billion). The company also noted that approximately 65-75% of its remaining performance obligations are expected to be recognized as revenues over the next 12 months, providing healthy visibility into growth.
Comfort Systems Expands Margins on ExecutionOperating performance strengthened alongside the sharp increase in revenues. Gross profit increased to $844.2 million from $509.9 million a year ago, and gross margin expanded to 25.9% from 23.5%, reflecting improved project execution and operating leverage.
Selling, general and administrative expenses increased to $287 million, but as a percentage of revenues, SG&A improved to 8.8% from 9.7%. Operating income climbed to $558 million from $299.9 million a year earlier, lifting the operating margin to 17.1% from 13.8%.
Adjusted EBITDA rose to $600.5 million from $334.1 million in the year-ago quarter, while adjusted EBITDA margin expanded 300 basis points to 18.4%.
FIX Financial Position Remains StrongAs of June 30, 2026, Comfort Systems had cash and cash equivalents of $1.85 billion, up from $981.9 million at 2025-end. Long-term debt declined to $53.8 million from $139.1 million at Dec. 31, 2025, further strengthening the company's balance sheet.
During the first six months of 2026, net cash provided by operating activities totaled $1.53 billion compared with $164.5 million in the year-ago period. Free cash flow increased to $1.24 billion from $113.1 million a year earlier. During the quarter, the company also paid dividends of 80 cents per share and continued repurchasing shares, reflecting its robust cash generation and shareholder return strategy.
FIX’s Zacks Rank & Recent Construction ReleasesComfort Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year. The quarterly results reflect reduced home-closing volumes, softer average selling prices (“ASP”) and margin compression.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with PHM’s broader pricing pressure.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
DHI’s earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.
LEN’s Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.
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.
HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, today announced that its board of directors declared a quarterly dividend of $0.90 per share, which is a $0.10 increase from the Company's most recent dividend, on Comfort Systems USA, Inc. common stock. The dividend is payable on August 24, 2026 to stockholders of record at the close of busine.
HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX) (the “Company”) today reported results for the quarter ended June 30, 2026. For the quarter ended June 30, 2026, net income was $441.6 million, or $12.53 per diluted share, as compared to $230.8 million, or $6.53 per diluted share, for the quarter ended June 30, 2025. Revenue for the second quarter of 2026 was $3.27 billion compared to $2.17 billion in 2025. The Company reported operating cash flow of $1.14 billion in the current q.
Key Takeaways Comfort Systems' Q2 EPS is estimated to rise 59%, while revenues are projected to grow 35.4%.FIX's record backlog and data-center demand likely supported mechanical and electrical segment growth.Comfort Systems' margins likely benefited from project selection, pricing discipline and operating leverage. Comfort Systems USA, Inc. (FIX - Free Report) is slated to report its second-quarter 2026 results on July 23, after market close.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 46.2% and 18.1%, respectively. Adjusted earnings per share (EPS) of $10.51 grew a whopping 121.3% from $4.75 reported in the year-ago quarter. Revenues of $2.87 billion also increased 56.8% on a year-over-year basis.
FIX’s earnings topped the consensus mark in each of the trailing four quarters. The average surprise is shown in the chart below.
Image Source: Zacks Investment Research
How Are Estimates Placed for FIX Stock?The Zacks Consensus Estimate for second-quarter EPS has increased to $10.38 from $10.30 over the past 60 days. The estimate indicates 59% growth from the year-ago EPS of $6.53. The consensus mark for revenues is pegged at $2.94 billion, indicating a 35.4% year-over-year increase.
For 2025, Comfort Systems is expected to register a 30.6% increase from a year ago in revenues. Its EPS is expected to grow 49.2% from a year ago. Below is what to expect from the FIX stock.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Factors Likely to Have Defined FIX’s Q2 PerformanceStrong Backlog Likely Supported Revenues: Comfort Systems’ second-quarter 2026 revenues are expected to have remained robust, supported by continued execution of its record backlog and sustained demand from technology customers. Management indicated that data centers continue to dominate the company’s pipeline and backlog, providing strong revenue visibility entering the quarter. Demand from semiconductor manufacturing, industrial projects, healthcare, education and government markets is also likely to have supported project activity. The company’s nationwide footprint, expanding modular capabilities and strong execution across mechanical and electrical operations are expected to have further aided revenue conversion.
Segment-Wise: Comfort Systems operates through two main segments — Mechanical and Electrical. For second-quarter 2026, Comfort Systems’ Mechanical segment (which accounted for 73.3% of total revenues in 2025) is expected to have benefited from healthy demand for HVAC, piping, modular fabrication and process systems tied to data centers and advanced manufacturing projects. Continued investment in modular production capacity likely supported project execution. The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $2.12 billion for the second quarter, up from $1.64 billion reported a year ago.
The Electrical segment (26.7%) is also expected to have delivered strong growth, driven by demand for power distribution and controls work associated with hyperscale data centers and other mission-critical facilities. The recently announced electrical acquisition is unlikely to have materially affected second-quarter results but should strengthen the business over time. The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $800 million for the second quarter, up from $534.6 million reported a year ago.
Margins Likely Healthy: Margins are expected to have remained healthy in the second quarter. Management expects gross margins to stay within the strong ranges achieved in recent quarters, supported by disciplined project selection, favorable project execution, pricing discipline and operating leverage. Continued investments in modular manufacturing should enhance long-term efficiency, though labor availability remains the company's primary operational constraint rather than demand.
Overall, management did not issue specific second-quarter guidance but expressed confidence in the business outlook. It continues to expect full-year 2026 same-store revenue growth in the mid- to high-20% range, supported by persistent customer demand, strong bookings, expanding modular capacity and record backlog.
What the Zacks Model Says for FIX StockOur proven model does not conclusively predict an earnings beat for Comfort Systems this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
FIX’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
FIX’s Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
FIX Stock’s Price PerformanceFIX stock has surged 83.4% year to date (YTD), outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Construction sector and the S&P 500 Index.
FIX Stock’s Price Performance (YTD)
Image Source: Zacks Investment Research
Comfort Systems sits at a critical execution layer of the AI-driven data center and technology infrastructure boom, competing with Quanta Services, Inc. (PWR - Free Report) , Carrier Global Corp. (CARR - Free Report) and EMCOR Group, Inc. (EME - Free Report) across distinct but overlapping segments. So far this year, FIX has also outperformed these market players, of which Quanta and Carrier Global have gained 49.9% and 26.8%, respectively, while EMCOR has gained 21.6%. It has also comfortably exceeded the gains of these major peers, suggesting investors’ continued reward for Comfort Systems for its strong exposure to high-growth end markets, particularly AI data centers, advanced manufacturing and mission-critical infrastructure.
FIX’s Valuation TrendFIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 35.28, as evidenced by the chart below.
FIX’s Valuation vs Industry (P/E F12M)
Image Source: Zacks Investment Research
At 35.28x forward 12-month earnings, FIX trades above Carrier Global (22.42X) and EMCOR (23.74X), indicating investors are willing to pay a higher multiple for its superior growth outlook and execution. However, it is not the most expensive stock among the peer group, as Quanta commands an even richer multiple of 41.1X.
ConclusionDespite its premium valuation, Comfort Systems appears well positioned heading into its second-quarter results. The company continues to benefit from record backlog, robust demand from AI data centers, semiconductor and mission-critical infrastructure projects, healthy margins and favorable earnings estimate revisions. Its expanding modular manufacturing capabilities, disciplined project selection and strong same-store revenue growth outlook further reinforce confidence in its long-term growth trajectory. The company's industry-leading execution has also translated into significant stock outperformance versus both peers and the broader market, making FIX a stock investors should continue holding ahead of its second-quarter 2026 earnings release.
Comfort Systems USA (FIX) is rated Buy, driven by its unmatched scale, integrated capabilities, and strong balance sheet supporting data center and tech facility demand. FIX's $12.45B backlog, up 80.8% y/y, provides high revenue visibility, with 65–75% of obligations expected to convert within 12 months. Q1 2026 EBIT margin expanded to 17% (15.5% normalized), reflecting operating leverage and higher-margin backlog conversion.
Andra AP fonden boosted its holdings in Comfort Systems USA, Inc. (NYSE:FIX – Free Report) by 79.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 14,013 shares of the construction company’s stock after purchasing an additional 6,213 shares during the quarter. Andra AP fonden’s holdings in Comfort Systems USA were worth $19,324,000 as of its most recent SEC filing.
A number of other institutional investors have also added to or reduced their stakes in FIX. Vanguard Group Inc. lifted its stake in Comfort Systems USA by 17.0% in the 4th quarter. Vanguard Group Inc. now owns 4,310,126 shares of the construction company’s stock worth $4,022,597,000 after purchasing an additional 625,567 shares in the last quarter. State Street Corp grew its position in shares of Comfort Systems USA by 35.6% during the fourth quarter. State Street Corp now owns 1,428,674 shares of the construction company’s stock valued at $1,333,367,000 after purchasing an additional 375,118 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Comfort Systems USA by 39.0% during the fourth quarter. Geode Capital Management LLC now owns 1,185,909 shares of the construction company’s stock valued at $1,103,453,000 after purchasing an additional 332,441 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Comfort Systems USA by 7.4% in the third quarter. Invesco Ltd. now owns 1,064,560 shares of the construction company’s stock worth $878,454,000 after purchasing an additional 73,727 shares during the last quarter. Finally, AQR Capital Management LLC increased its holdings in shares of Comfort Systems USA by 22.1% in the fourth quarter. AQR Capital Management LLC now owns 1,019,922 shares of the construction company’s stock worth $951,883,000 after purchasing an additional 184,362 shares during the last quarter. 96.51% of the stock is owned by hedge funds and other institutional investors.
Comfort Systems USA Trading Up 2.3% Shares of NYSE FIX opened at $1,712.83 on Tuesday. Comfort Systems USA, Inc. has a 1-year low of $513.99 and a 1-year high of $2,073.99. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.24 and a quick ratio of 1.21. The business’s 50 day moving average is $1,855.02 and its two-hundred day moving average is $1,549.75. The stock has a market capitalization of $60.29 billion, a P/E ratio of 49.42 and a beta of 1.66.
Comfort Systems USA (NYSE:FIX – Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The construction company reported $10.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.81 by $3.70. The business had revenue of $2.87 billion during the quarter, compared to analyst estimates of $2.39 billion. Comfort Systems USA had a return on equity of 51.69% and a net margin of 12.07%.The company’s revenue for the quarter was up 56.5% on a year-over-year basis. During the same period last year, the company earned $4.75 EPS. As a group, research analysts expect that Comfort Systems USA, Inc. will post 43.39 EPS for the current year.
Comfort Systems USA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Friday, May 15th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 0.2%. The ex-dividend date was Friday, May 15th. This is a boost from Comfort Systems USA’s previous quarterly dividend of $0.70. Comfort Systems USA’s payout ratio is currently 9.23%.
Insider Buying and Selling In related news, insider Brian E. Lane sold 11,113 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $1,969.84, for a total value of $21,890,831.92. Following the completion of the sale, the insider directly owned 161,089 shares in the company, valued at $317,319,555.76. This trade represents a 6.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Julie Shaeff sold 1,123 shares of Comfort Systems USA stock in a transaction on Monday, May 11th. The stock was sold at an average price of $2,000.37, for a total transaction of $2,246,415.51. Following the transaction, the chief accounting officer directly owned 12,624 shares of the company’s stock, valued at $25,252,670.88. The trade was a 8.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 30,778 shares of company stock valued at $59,746,124 over the last 90 days. 1.24% of the stock is currently owned by insiders.
Wall Street Analysts Forecast Growth FIX has been the subject of several research analyst reports. Oppenheimer initiated coverage on Comfort Systems USA in a report on Thursday, May 28th. They set an “outperform” rating and a $2,200.00 price target for the company. Stifel Nicolaus increased their target price on Comfort Systems USA from $1,611.00 to $1,819.00 and gave the company a “buy” rating in a research report on Thursday, April 16th. UBS Group increased their target price on Comfort Systems USA from $1,992.00 to $2,125.00 and gave the company a “buy” rating in a research report on Monday, June 8th. The Goldman Sachs Group began coverage on shares of Comfort Systems USA in a research report on Thursday, July 9th. They issued a “buy” rating and a $2,159.00 price target on the stock. Finally, Glj Research assumed coverage on shares of Comfort Systems USA in a research note on Monday, April 20th. They set a “buy” rating and a $2,001.00 price target on the stock. Nine research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $2,015.43.
View Our Latest Analysis on Comfort Systems USA
Comfort Systems USA Profile (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.
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Baader Bank Aktiengesellschaft acquired a new stake in Comfort Systems USA, Inc. (NYSE:FIX – Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The fund acquired 1,407 shares of the construction company’s stock, valued at approximately $1,914,000.
A number of other institutional investors have also recently modified their holdings of the stock. Andra AP fonden increased its stake in Comfort Systems USA by 79.7% in the first quarter. Andra AP fonden now owns 14,013 shares of the construction company’s stock valued at $19,324,000 after acquiring an additional 6,213 shares during the last quarter. Summit Global Investments acquired a new stake in shares of Comfort Systems USA in the 1st quarter valued at approximately $411,000. Convergence Investment Partners LLC bought a new stake in shares of Comfort Systems USA during the 1st quarter valued at approximately $2,226,000. Commerzbank Aktiengesellschaft FI acquired a new position in shares of Comfort Systems USA during the first quarter worth $1,524,000. Finally, Hollencrest Capital Management bought a new stake in Comfort Systems USA during the 1st quarter worth $48,000. 96.51% of the stock is currently owned by institutional investors.
Insider Activity In other news, insider Brian E. Lane sold 11,113 shares of the business’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $1,969.84, for a total transaction of $21,890,831.92. Following the completion of the transaction, the insider owned 161,089 shares of the company’s stock, valued at approximately $317,319,555.76. The trade was a 6.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO William George III sold 1,000 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $2,020.96, for a total value of $2,020,960.00. Following the transaction, the chief financial officer directly owned 32,804 shares of the company’s stock, valued at $66,295,571.84. The trade was a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 30,778 shares of company stock worth $59,746,124. Company insiders own 1.24% of the company’s stock.
Comfort Systems USA Price Performance NYSE FIX opened at $1,712.83 on Tuesday. Comfort Systems USA, Inc. has a 52 week low of $513.99 and a 52 week high of $2,073.99. The firm’s 50-day simple moving average is $1,855.02 and its two-hundred day simple moving average is $1,549.75. The company has a quick ratio of 1.21, a current ratio of 1.24 and a debt-to-equity ratio of 0.01. The company has a market cap of $60.29 billion, a PE ratio of 49.42 and a beta of 1.66.
Comfort Systems USA (NYSE:FIX – Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The construction company reported $10.51 EPS for the quarter, beating analysts’ consensus estimates of $6.81 by $3.70. The company had revenue of $2.87 billion during the quarter, compared to analyst estimates of $2.39 billion. Comfort Systems USA had a net margin of 12.07% and a return on equity of 51.69%. Comfort Systems USA’s revenue was up 56.5% compared to the same quarter last year. During the same period last year, the business earned $4.75 earnings per share. Research analysts predict that Comfort Systems USA, Inc. will post 43.39 earnings per share for the current year.
Comfort Systems USA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Shareholders of record on Friday, May 15th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend was Friday, May 15th. This is an increase from Comfort Systems USA’s previous quarterly dividend of $0.70. Comfort Systems USA’s payout ratio is 9.23%.
Analysts Set New Price Targets Several equities analysts have commented on the company. Zacks Research downgraded Comfort Systems USA from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 26th. Oppenheimer assumed coverage on shares of Comfort Systems USA in a report on Thursday, May 28th. They issued an “outperform” rating and a $2,200.00 target price on the stock. Stifel Nicolaus raised their price target on shares of Comfort Systems USA from $1,611.00 to $1,819.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Glj Research initiated coverage on shares of Comfort Systems USA in a research report on Monday, April 20th. They set a “buy” rating and a $2,001.00 target price for the company. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Comfort Systems USA in a research note on Friday. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $2,015.43.
View Our Latest Stock Report on Comfort Systems USA
Comfort Systems USA Profile (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.
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Copeland Capital Management LLC decreased its holdings in Comfort Systems USA, Inc. (NYSE:FIX – Free Report) by 55.5% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 467 shares of the construction company’s stock after selling 582 shares during the quarter. Copeland Capital Management LLC’s holdings in Comfort Systems USA were worth $644,000 as of its most recent filing with the SEC.
A number of other large investors also recently modified their holdings of FIX. NewEdge Advisors LLC grew its position in Comfort Systems USA by 41.1% in the 1st quarter. NewEdge Advisors LLC now owns 3,412 shares of the construction company’s stock valued at $1,100,000 after buying an additional 993 shares in the last quarter. Focus Partners Wealth raised its position in shares of Comfort Systems USA by 110.6% during the 1st quarter. Focus Partners Wealth now owns 2,300 shares of the construction company’s stock worth $741,000 after buying an additional 1,208 shares in the last quarter. Sivia Capital Partners LLC raised its position in shares of Comfort Systems USA by 40.9% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,079 shares of the construction company’s stock worth $579,000 after buying an additional 313 shares in the last quarter. WINTON GROUP Ltd acquired a new stake in shares of Comfort Systems USA in the 2nd quarter worth approximately $567,000. Finally, Sei Investments Co. lifted its stake in shares of Comfort Systems USA by 69.2% in the 2nd quarter. Sei Investments Co. now owns 43,631 shares of the construction company’s stock worth $23,395,000 after acquiring an additional 17,839 shares during the period. 96.51% of the stock is owned by institutional investors and hedge funds.
Comfort Systems USA Trading Down 0.8% Shares of NYSE:FIX opened at $1,667.28 on Friday. The stock has a market capitalization of $58.69 billion, a price-to-earnings ratio of 48.10 and a beta of 1.66. Comfort Systems USA, Inc. has a 1-year low of $513.99 and a 1-year high of $2,073.99. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.21 and a current ratio of 1.24. The company has a 50 day moving average price of $1,861.34 and a 200 day moving average price of $1,540.19.
Comfort Systems USA (NYSE:FIX – Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The construction company reported $10.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.81 by $3.70. Comfort Systems USA had a return on equity of 51.69% and a net margin of 12.07%.The company had revenue of $2.87 billion for the quarter, compared to analysts’ expectations of $2.39 billion. During the same quarter in the prior year, the company earned $4.75 earnings per share. The firm’s revenue was up 56.5% on a year-over-year basis. On average, research analysts anticipate that Comfort Systems USA, Inc. will post 43.39 EPS for the current fiscal year.
Comfort Systems USA Increases Dividend The business also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Friday, May 15th were issued a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Friday, May 15th. This is a positive change from Comfort Systems USA’s previous quarterly dividend of $0.70. Comfort Systems USA’s payout ratio is presently 9.23%.
Insiders Place Their Bets In other news, Director William J. Sandbrook sold 1,500 shares of the company’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $1,732.67, for a total transaction of $2,599,005.00. Following the completion of the sale, the director directly owned 7,666 shares of the company’s stock, valued at $13,282,648.22. This represents a 16.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Franklin Myers sold 6,700 shares of the stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $1,954.47, for a total value of $13,094,949.00. Following the completion of the transaction, the director owned 62,115 shares of the company’s stock, valued at $121,401,904.05. This trade represents a 9.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 30,778 shares of company stock worth $59,746,124. Corporate insiders own 1.24% of the company’s stock.
Wall Street Analyst Weigh In Several research analysts have recently issued reports on FIX shares. Stifel Nicolaus increased their price objective on shares of Comfort Systems USA from $1,611.00 to $1,819.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Wall Street Zen cut Comfort Systems USA from a “strong-buy” rating to a “buy” rating in a report on Sunday, May 10th. The Goldman Sachs Group assumed coverage on Comfort Systems USA in a research note on Thursday, July 9th. They set a “buy” rating and a $2,159.00 price target for the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Comfort Systems USA in a research report on Monday, April 20th. Finally, Glj Research began coverage on Comfort Systems USA in a research note on Monday, April 20th. They issued a “buy” rating and a $2,001.00 price objective on the stock. Nine analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $2,015.43.
Read Our Latest Analysis on Comfort Systems USA
Comfort Systems USA Profile (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.
Featured Articles Five stocks we like better than Comfort Systems USA Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors 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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HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of mechanical and electrical contracting services including heating, ventilation, air conditioning, plumbing, electrical, piping and controls, announces that it has scheduled its quarterly conference call and webcast for Friday, July 24, 2026, at 10:00 a.m. Central Time to discuss second quarter 2026 financial results. The results will be released after the market closes on Thursday, July 23, 2026.
The conference call will be webcast live in listen-only mode on the Company’s website at https://investors.comfortsystemsusa.com/. The call and the slide presentation to accompany the remarks can be accessed under the “Investors” tab after second quarter 2026 results are released. Participants who want to join the call and ask a question may register at https://register-conf.media-server.com/register/BI777a987fe0b945e9888811125e5fa190 to receive the dial-in information and a unique PIN to seamlessly access the call. Otherwise, please access the listen-only webcast link.
On the next business day following the call, a replay of the entire call will be available on the Company’s website.
Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with 206 locations in 150 cities around the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.
Comfort Systems has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this heating, ventilation and air conditioning company have returned -14.6% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Building Products - Air Conditioner and Heating industry, to which Comfort Systems belongs, has lost 4.6% 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Comfort Systems is expected to post earnings of $10.38 per share, indicating a change of +59% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $43.09 points to a change of +49.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $52.93 indicates a change of +22.8% from what Comfort Systems is expected to report a year ago. Over the past month, the estimate has changed +1.2%.
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 #3 (Hold).
Revenue Growth ForecastWhile 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.
In the case of Comfort Systems, the consensus sales estimate of $2.94 billion for the current quarter points to a year-over-year change of +35.4%. The $11.88 billion and $13.89 billion estimates for the current and next fiscal years indicate changes of +30.6% and +16.9%, respectively.
Last Reported Results and Surprise HistoryComfort Systems reported revenues of $2.87 billion in the last reported quarter, representing a year-over-year change of +56.5%. EPS of $10.51 for the same period compares with $4.75 a year ago.
Compared to the Zacks Consensus Estimate of $2.43 billion, the reported revenues represent a surprise of +18.11%. The EPS surprise was +46.18%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.
Bottom LineThe 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 #3 does suggest that it may perform in line with the broader market in the near term.
On July 16, 2026, Comfort Systems USA Inc (FIX) shares fell 3.2%, closing at $1680.60. The stock has experienced significant volatility, trading within a 52-wee
While investor attention has been firmly fixed on pure-play artificial intelligence stocks in recent years, it may be the construction firms delivering high-tech infrastructure needs that offer value looking ahead.
Spending on data centers has been accelerating of late, surpassing the $50 billion mark for the first time in April, representing 2.3% of construction spend as a whole in the United States.
As of the beginning of the year, monthly spending on US data center construction has soared to more than $2.4 billion, which is approximately 16-times higher than 2014 levels and illustrates the extent of the ongoing AI buildout.
The extent of these AI ambitions is set to create a lasting impact on infrastructure. According to Goldman Sachs data, the power demand requirements from US data centres are expected to more than double to 66 GW in 2027, up from 31 GW in 2025.
This sharp increase in infrastructure projects is already helping to provide a boost for the construction stocks tasked with building the data centers that will drive AI adoption into the future, and there are three companies that appear set to become key beneficiaries of the implementation phase of the artificial intelligence boom:
1. Sterling Infrastructure (NASDAQ:STRL)Sterling Infrastructure (NASDAQ:STRL) is a specialist in E-infrastructure, providing site preparation, concrete foundation pads, and building large-scale facilities to house data centers and chip fabs.
Critically, Sterling Infrastructure has seen its E-infrastructure revenues double year-over-year, highlighting that it’s already becoming the preferred firm to deliver on America’s growing AI data center needs.
According to Sterling’s first-quarter results, the company’s combined backlog soared 131% to $5.2 billion, while management highlighted "future phases" that would lift total visibility towards almost $6.5 billion.
More than 90% of the firm’s signed E-infrastructure segment’s backlog is tied to mission-critical work like data centers, large manufacturing, and semiconductors, which makes Sterling exceptionally closely aligned with the artificial intelligence boom.
Sterling’s blowout Q1 2026 earnings have helped the stock more than double in value since the beginning of the year, and as AI infrastructure spending continues to show no signs of slowing down, it’s clear that this is a construction stock that could play a major role in its buildout.
Driven by AI data center demand, Comfort Systems has reported a record order backlog of almost $12 billion, with infrastructure projects also linked to the firm’s specialisms in semiconductor facilities, healthcare, and education construction work.
Although the stock has entered a period of sideways trading in recent weeks, it’s still up more than 200% over the past 12 months.
There may also be some concerns about Comfort Systems’ ability to deliver on such a seismic order backlog, but there’s evidence that the AI boom is also helping to improve the firm’s ability to meet growing demand.
While data shows that traditional construction processes have caused 59% of workers to spend 11 or more hours per week chasing information across different systems, unified artificial intelligence insights are helping to improve the efficiency of industry innovators, providing more support for ambitious project management.
With AI generating fresh tailwinds, Comfort Systems USA appears to be well positioned to lean further into large project cycles to support digital infrastructure without the threat of concentration risk in high-tech markets.
3. Quanta Services (NYSE:PWR)Quanta’s backlog sits at a record $48.5 billion, which has accelerated sharply as large load facility awards and 765-kilovolt transmission work shifted from pipeline to contract.
The stock has much more potential for growth in the future, with data center energy requirements forecasted to more than double by 2027, and CEO Duke Austin has suggested that the earnings power of the company could also increase by more than double by 2030.
The backlog also delivered an earnings beat in Q1 2026, with revenues reaching $7.9 billion against a consensus estimate of $7.0 billion.
With energy becoming a key consideration in the AI buildout, Quanta Services is certainly a stock to track for investors.
Monitoring the AI BoomThe artificial intelligence infrastructure buildout is showing no signs of slowing down, even as some market stress has begun to drift through Wall Street’s key AI players.
With this in mind, construction companies could emerge as some of the stocks with the best growth potential as we enter the second phase of AI adoption in the United States.
As factors like construction and energy continue to take center stage in powering the AI infrastructure of tomorrow, there are new opportunities for the stocks powering the high-tech landscape that investors should be aware of.
Disclosure: On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer. Dmytro Spilka does not intend to make a trade in any of the securities mentioned above in the next 72 hours.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Comfort Systems (FIX - Free Report) ended the recent trading session at $1,732.03, demonstrating a -1.37% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The stock of heating, ventilation and air conditioning company has fallen by 6.47% in the past month, lagging the Construction sector's gain of 2.79% and the S&P 500's gain of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Comfort Systems in its upcoming earnings disclosure. The company is forecasted to report an EPS of $10.38, showcasing a 58.96% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.94 billion, reflecting a 35.42% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $43.08 per share and revenue of $11.88 billion. These totals would mark changes of +49.17% and +30.51%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Comfort Systems. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Comfort Systems holds a Zacks Rank of #3 (Hold).
Digging into valuation, Comfort Systems currently has a Forward P/E ratio of 40.76. Its industry sports an average Forward P/E of 23.75, so one might conclude that Comfort Systems is trading at a premium comparatively.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Artificial intelligence (AI) requires many data centers to scale. Those data centers provide the infrastructure for power, chips, and other necessary inputs for this innovative technology.
However, someone has to build those AI data centers and ensure that the infrastructure can handle AI workloads. That's where Argan (AGX 8.32%) and Comfort Systems USA (FIX 1.57%) come into play. These infrastructure companies are vital to data centers, and with both down by more than 10% from their all-time highs, there's a good argument to be made for both of them.
However, if you can put money only into Argan or Comfort Systems USA, these are some of the key details to consider.
Image source: Getty Images.
How both companies enable AI data centers Data centers require many inputs, and this becomes more important since AI chips must be housed in data centers to function. Argan specializes in natural gas power plants and addresses the power shortage.
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Data centers tap into power plants for energy, so anytime a new site is announced, utility companies and AI data center builders assess whether the power grid can support the new facility. If there is insufficient power in the area, Argan is hired to build a power plant that can generate enough energy for the upcoming data center.
Comfort Systems USA provides HVAC installation services for those data centers. Temperature control is vital in data centers because they require extremely cool environments to prevent AI chips from overheating.
Argan makes more money up front, but it's just constructing power plants. It doesn't actually own them. And Comfort Systems USA does not own the AI data centers that house its HVAC systems, but those same installations still require maintenance, so Comfort Systems USA has more potential for recurring revenue from the projects it is involved in.
Comfort Systems USA has a slight edge with valuation and growth rates Both stocks have had similar movement in recent years. Both have more than tripled over the past year, and even their revenue growth rates and valuations are similar. However, Comfort Systems USA barely wins out on both of those key metrics.
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Argan delivered 50% year-over-year revenue growth in its fiscal 2027 first quarter, compared to Comfort Systems USA's 56% year-over-year revenue growth in Q1. Comfort Fix Systems USA also reported higher year-over-year net income growth, although Argan's 15.8% net profit margin edged out Comfort Systems USA's 12.9% net profit margin. Both companies more than doubled their profits year over year.
Comfort Systems USA trades at a 51 price-to-earnings (P/E) ratio, compared to Argan's 60 P/E ratio. That means Comfort Systems USA offers a higher margin of safety than Argan. Valuation matters considerably, as both of these companies have similar growth rates across key metrics.
Recurring revenue gives Comfort Systems USA a base While AI continues to heat up and looks like it could continue to scale for many years, it's worth considering how these companies are positioned if this industry starts to slow down. Comfort Systems USA is better positioned in that regard, as existing AI data centers still need maintenance. Argan doesn't generate any extra revenue from a project after its completion.
Argan cited global energy demand and aging power-generating infrastructure as two key catalysts. The company has been executing on the opportunity and closed out its fiscal 2027 first quarter with a $2.8 billion backlog. Argan reported $291 million in revenue during its most recent quarter, so its backlog could keep the company busy for multiple years.
However, after completing projects, Argan must start constructing the next power plant to realize more revenue. Meanwhile, Comfort Systems USA can view each data center as recurring income. That part of the business should become more lucrative as more data centers are completed.
Comfort Systems USA wrapped up the quarter with a $12.45 billion backlog, compared to $2.87 billion in Q1 revenue. That backlog also offers revenue visibility for an extended period of time.
Although both companies are well positioned for now, Comfort Systems USA looks like the better pick if you could only choose one.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
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>>>
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.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is FIX a Good Investment?In terms of earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $43.08.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market 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 #3 (Hold) for Comfort Systems. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Comfort Systems.
Key Takeaways Comfort Systems targets 4M square feet of modular capacity by end-2026 as demand drives expansion.Q1 CapEx surged to $147M, funding a Texas modular assembly building and automation investments.Large customers need more capacity, while new customers are placing sizable trial orders. Comfort Systems USA, Inc. (FIX - Free Report) is expanding its modular capabilities as customer demand creates a need for greater off-site production capacity. Modular revenues accounted for 17% of total revenues in the first quarter of 2026, making the business a meaningful part of the company’s construction operations. The company is on track to reach 4 million square feet of modular capacity by the end of 2026 and is evaluating further investments.
The expansion is supported by a sharp increase in capital spending. Capital expenditures reached $147 million in the first quarter, up from $22 million a year ago, and represented 5.1% of revenues compared with 1.2%. Spending included the purchase of a large modular assembly building in Texas and other investments in modular capabilities. Full-year CapEx is expected to remain near 5% of revenues as Comfort Systems invests in facilities and automation equipment.
The capacity buildout is also tied to customer demand. Existing large customers require additional capacity, while new customers are placing sizable trial orders. For many facilities, Comfort Systems seeks multiyear customer commitments at agreed volume levels before committing capacity. This approach can improve visibility around asset use, support pricing and deepen customer relationships.
The broader operating environment also provides support. First-quarter revenues rose 56% to $2.9 billion, while same-store revenues increased 51% year over year. Mechanical segment revenues, which include modular activity, grew 47% year over year. Taken together, rising modular scale, customer-backed capacity additions and automation investments could strengthen Comfort Systems’ ability to serve larger project volumes. However, the higher capital requirement makes disciplined capacity deployment and sustained customer demand important to realizing returns from the expansion.
Comfort Systems’ Competitive LandscapeComfort Systems, alongside close peers, AAON, Inc. (AAON - Free Report) and Carrier Global Corporation (CARR - Free Report) , is pursuing different strategies to strengthen its position across the HVAC and infrastructure markets. All three are benefiting from demand for advanced cooling, energy-efficient systems and data center infrastructure.
Comfort Systems has distinguished itself through strong project execution and expanding mechanical, electrical and modular capabilities for complex data center and advanced technology projects. AAON focuses on highly engineered and configurable HVAC solutions, supported by capacity expansion and improved production. Demand for data center thermal management and specialized cooling applications is also supporting growth opportunities.
Carrier Global competes through a broad HVAC portfolio, product innovation and integrated building solutions. Its business is supported by commercial HVAC demand, aftermarket services, digital connectivity and energy-efficient offerings. While Comfort Systems emphasizes project execution and modular capabilities, AAON relies on specialized HVAC and cooling solutions and Carrier Global uses product breadth, system integration and a broad service network to compete across end markets.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 90.8% year to date, 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 37.07, as the trend lines suggest below.
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 $43.08 and $52.59 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 49.2% and 22.1%, respectively.
Image Source: Zacks Investment Research
Comfort Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cash flow is an essential component for many successful companies, allowing firms to fund new growth via acquisitions or increased production while also reducing the need to rely on debt and providing financial stability. Still, investors may be inclined to overlook cash flow in favor of other key metrics—in doing so, however, they risk missing out on excellent opportunities to buy into companies with the flexibility and stability to expand their operations.
When combined with strong performance in another category—excellent sales growth, for instance, or already-impressive cash reserves—companies with healthy cash flow can deliver excellent value to shareholders. The three companies below stand out not only for their prospects as deliverers of cash flow, but also for a variety of other factors ranging from momentum to earnings growth.
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Comfort Systems Is a Top-Performing Industrials Name With Room to Keep GoingOverall MarketRank™97th Percentile
Analyst RatingModerate Buy
Upside/Downside18.3% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment1.50 Insider TradingSelling Shares
Proj. Earnings Growth21.20%
See Full Analysis
Comfort Systems USA Inc. NYSE: FIX is an HVAC company catering to large-scale commercial and industrial clients. While the focus of the business is hardly glamorous, it is undoubtedly lucrative—particularly as Comfort Systems has become a go-to provider for data center customers across the country. The surge in demand has led to a record backlog of $12.5 billion in the latest quarter (a full $5 billion higher than the prior-year period) and, with returns of about 67% in 2026, among the strongest performers in the industrials sector year to date (YTD).
As revenue has surged by almost 57% year over year (YOY) in Q1 2026, the company has also tremendously boosted its cash flow. Comfort Systems reported operating cash inflows of about $389 million in the first quarter of the year compared with outflows of $88 million a year earlier. Earnings per share (EPS) and gross margins are also increasing at a rapid pace. Though Comfort Shares pays a modest dividend yield, it is building a notable history of dividend increases and maintains a healthy payout ratio.
To be sure, FIX shares are not the cheapest investors will find, as the company has a price-to-earnings (P/E) ratio of 47.4. However, despite its massive rally so far this year, analysts still see momentum continuing. A consensus price target of $1,991.50 means about 19% in potential upside, and FIX has nine Buy ratings and just two Holds.
Mueller's Share Price Decline This Year Could Be a Big OpportunityOverall MarketRank™49th Percentile
Analyst RatingModerate Buy
Upside/DownsideN/A
Short Interest LevelHealthy
Dividend StrengthModerate
News Sentiment0.03 Insider TradingSelling Shares
Proj. Earnings GrowthN/A
See Full Analysis
A maker of metal and plastic tubing, fittings, and other components used in HVAC, plumbing, and various industrial applications, Mueller Industries Inc. NYSE: MLI has had a very different trajectory this year compared to FIX. MLI shares are down nearly 4% YTD amid softness in some of its client markets. Still, a competitive market position and an excellent balance sheet make this company one to watch.
Mueller's net cash from operating activities has grown alongside its top and bottom lines. YOY revenue improvement of more than 19% led the firm to a solid beat in the latest quarter. Best of all, perhaps, the company has some $1.4 billion in cash reserves, giving it plenty of room for acquisitions, to return value to shareholders, or to absorb potential supply price hiccups due to inflation or other concerns. With a recent two-for-one stock split, the company may be positioning itself for big moves. In the meantime, its P/E ratio of 14.4 is lower than the industrials sector on average and many of its peers specifically.
Steel Dynamics Inc. NASDAQ: STLD is a steel producer that also engages in metals recycling. Though shares have fallen from all-time highs achieved earlier this year, STLD stock is still up nearly 35% YTD. Still, the company had a strong Q1 2026 overall, including revenue that climbed by 19% YOY and record steel shipments. Steel operating income was a particular highlight, as it increased by 73% on a sequential basis.
Steel Dynamics' cash flow has allowed it to build up about $2 billion in liquidity, which the company has recently put into share buybacks and a dividend increase. With 2026 capital expenditures (CapEx) guidance of roughly $600 million, the firm has room to invest in growth areas while also strengthening its value proposition for shareholders.
One specific growth area is the aluminum business. Thanks to the firm's recycling-based model, it may be able to remain resilient in the face of rising energy prices that could otherwise undermine its profitability. This may be why analyst ratings are largely positive: STLD has a Moderate Buy consensus rating, with seven Buys and five Holds.
Should You Invest $1,000 in Comfort Systems USA Right Now?Before you consider Comfort Systems USA, you'll want to hear this.
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In the latest trading session, Comfort Systems (FIX - Free Report) closed at $1,793.03, marking a +2.97% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
Heading into today, shares of the heating, ventilation and air conditioning company had lost 5.57% over the past month, lagging the Construction sector's gain of 0.11% and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. On that day, Comfort Systems is projected to report earnings of $10.38 per share, which would represent year-over-year growth of 58.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.94 billion, up 35.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $43.08 per share and revenue of $11.88 billion, which would represent changes of +49.17% and +30.51%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Comfort Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Comfort Systems is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Comfort Systems is currently exchanging hands at a Forward P/E ratio of 40.42. Its industry sports an average Forward P/E of 24.26, so one might conclude that Comfort Systems is trading at a premium comparatively.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Stock Market Skids As Trump Makes This Trade Call; Jobs Report Due Data center contractor Comfort Systems USA (FIX) has a three-year earnings-per-share growth rate of 78%, according to IBD Stock Checkup. That may well continue as the provider of building infrastructures expects strong growth not only in data centers, but chip manufacturing and energy storage as well, according to a Feb. 20 presentation to investors. Comfort Systems is one of the…
Comfort Systems USA, Inc. FIX is entering 2026 with unprecedented business momentum, but its record backlog also raises an important question: can the company execute this growing pipeline without compromising profitability? The mechanical and electrical contracting leader ended the first quarter of 2026 with a record backlog of $12.45 billion, nearly doubling from $6.89 billion a year earlier.
Comfort Systems (FIX - Free Report) closed at $1,981.31 in the latest trading session, marking a +1.67% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 1.52%.
The heating, ventilation and air conditioning company's stock has climbed by 8.99% in the past month, exceeding the Construction sector's gain of 5.5% and the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Comfort Systems in its upcoming release. The company is expected to report EPS of $10.38, up 58.96% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.94 billion, indicating a 35.42% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $43.08 per share and a revenue of $11.88 billion, demonstrating changes of +49.17% and +30.51%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comfort Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Comfort Systems currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Comfort Systems is at present trading with a Forward P/E ratio of 45.24. This indicates a premium in contrast to its industry's Forward P/E of 24.88.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Mechanical and electrical contracting services company Comfort Systems USA (FIX 7.95%) is a major winner from surging artificial intelligence (AI) data center investment. A high proportion of a data center's cost is in mechanical, electrical, and plumbing (MEP) systems, not least to ensure adequate cooling for heat-intensive IT racks. That's led to booming demand for the company's services and an incredible 1,160% return for investors over the last three years.
Comfort Systems revenue growth and margin expansion The increase comes down to surging orders driving backlog and revenue growth, along with margin expansion. The growth in its backlog (shown below) leads to highly predictable revenue growth in the future.
Data source: Comfort Systems presentations. Chart by the author.
Permanent margin expansion? Turning to the question of margin expansion, it comes from a combination of being able to selectively bid on complex and higher-margin AI data center projects, a natural leverage opportunity, as the marginal increase in revenue isn't accompanied by a significant increase in overhead costs, and the increase in its modular revenue, which represented 17% of its revenue in the first quarter of 2026.
Modular systems are manufactured at Comfort Systems locations (rather than onsite by tradespeople) and then transported and fitted onsite. It's a solution that confers several benefits for Comfort Systems and facility owners, such as optimizing MEP labor, improving quality control, and ensuring no disruption to the critical path of construction.
Although management doesn't break out modular revenue margins, it acknowledges its role as a contributor to the company's profit margin expansion in recent years. Moreover, management is expanding its modular capacity by 3 million square feet in 2025 to 4 million square feet by the end of 2026.
Data by YCharts.
Trading at 45 times expected 2026 earnings, the stock's valuation is arguably up with events. Still, if you think the AI data center spending boom is in its early innings, the momentum in orders and backlog growth could take the stock higher.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.
Key Takeaways Comfort Systems posted Q1 2026 revenue growth of 56% and EPS growth of more than 100%.Record backlog of $12.45 billion provides visibility and supports expansion opportunities.FIX is prioritizing organic investments but retains flexibility for selective buyouts in growth markets. Comfort Systems USA, Inc. (FIX - Free Report) has built a reputation for delivering strong organic growth, but as demand for data center and advanced technology infrastructure accelerates, investors are increasingly wondering whether acquisitions could become the company’s next major growth driver.
The company enters this phase from a position of strength. In the first quarter of 2026, revenues surged 56% year over year to $2.87 billion, while earnings per share more than doubled to $10.51. Record backlog of $12.45 billion provides substantial visibility into future revenue streams and demonstrates the strength of end-market demand.
Historically, Comfort Systems has used acquisitions strategically to expand geographic reach, strengthen specialized capabilities and deepen customer relationships. Its decentralized operating model has allowed acquired businesses to maintain local expertise while benefiting from broader corporate resources. This approach has contributed meaningfully to its long-term growth trajectory. Today, the opportunity appears even larger. The rapid expansion of AI-related infrastructure, electrical services and modular construction creates potential targets that could enhance FIX’s competitive position. Acquisitions in these areas could help the company scale faster, add skilled labor and expand into high-growth markets where demand continues to outpace supply.
At the same time, management remains focused on disciplined capital allocation. FIX is investing heavily in modular manufacturing facilities and automation initiatives, suggesting that organic growth remains the primary priority. However, its strong cash generation and healthy balance sheet provide flexibility to pursue attractive deals when opportunities arise.
For investors, the key takeaway is clear: while organic growth continues to power results today, acquisitions could represent an important second leg of expansion. If executed thoughtfully, they may help Comfort Systems extend its leadership position in a rapidly evolving infrastructure market.
Comfort Systems vs. AECOM & Carrier Global: Dealmakers' RaceComfort Systems is leveraging different strategies to capitalize on favorable infrastructure and technology spending trends, with backlog strength and selective inorganic growth playing important roles. In this path, the company faces competition from big names like AECOM (ACM - Free Report) and Carrier Global Corporation (CARR - Free Report) .
AECOM’s growth is supported by a robust backlog across transportation, water, environmental and infrastructure markets. The company has focused on portfolio optimization, strategic acquisitions and high-margin consulting services to strengthen its long-term growth profile while maintaining balance-sheet discipline. Meanwhile, Carrier Global approaches growth from an equipment and services perspective, using acquisitions to expand its climate solutions, digital capabilities and aftermarket offerings. Combined with strong demand for energy-efficient cooling systems and building technologies, these efforts support recurring revenue growth and profitability.
While Comfort Systems is capitalizing on construction-led demand, AECOM benefits from infrastructure planning and design, and Carrier Global leverages equipment, services and technology-driven building solutions.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have climbed 43.8% in the past three 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 41.13, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $43.08 and $52.30 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 49.2% and 21.4%, 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.
Comfort Systems (FIX - Free Report) closed the most recent trading day at $1,954.47, moving +2.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.43%.
Prior to today's trading, shares of the heating, ventilation and air conditioning company had gained 1.3% lagged the Construction sector's gain of 5.84% and outpaced the S&P 500's loss of 1.34%.
Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $10.38, reflecting a 58.96% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.94 billion, up 35.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $43.08 per share and a revenue of $11.88 billion, representing changes of +49.17% and +30.51%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comfort Systems. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.5% rise in the Zacks Consensus EPS estimate. Comfort Systems is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Comfort Systems is currently trading at a Forward P/E ratio of 44.29. This indicates a premium in contrast to its industry's Forward P/E of 23.47.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Comfort Systems USA (FIX +3.48%) has been a major beneficiary of the artificial intelligence boom. The infrastructure company provides ventilation and air conditioning for AI data centers that prevent GPUs from overheating.
Shares have more than doubled year to date and briefly touched $2,000. However, the stock has the potential to reach $2,500 per share by year-end. Here's why.
Image source: Getty Images.
Clear revenue visibility fuels solid results Comfort Systems USA benefits from a $12.45 billion backlog as of Q1. That's an 80.7% year-over-year increase, providing meaningful revenue visibility for future quarters. Total revenue for the first quarter was $2.87 billion, up 56.5% year over year. Its backlog is equal to more than one full year of revenue based on Q1 results.
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That revenue backlog is a major catalyst for future sales growth. Comfort Systems USA has reported sequential revenue growth for several quarters, partially fueled by its upcoming orders. The company also has a slight sequential increase in its backlog, showing that it can maintain the high figure while delivering on projects.
The clear revenue visibility also comes with rising profit margins. Net income more than doubled year over year, and the company closed Q1 with a double-digit net profit margin, a figure it has maintained for several quarters. Comfort Systems USA even announced a 14.3% dividend hike this year, showing that it can reward shareholders while gaining market share. That's a good setup on the path to $2,500 per share.
Tech companies are fueling the Comfort Systems USA rally The Comfort Systems rally isn't based on hype. The company is delivering tangible gains in its industry while appealing to tech giants eager to spend as much as possible on AI.
More than half of Comfort System USA's backlog was from tech companies in Q1. New construction also accounted for almost three-quarters of year-to-date revenue, up from 63.2% in full-year 2025.
Tech leaders need AI data centers for the next stage of innovation, and Comfort Fix USA is involved with many of them. Comfort Fix USA has also strategically acquired more than 50 operating companies over the years to expand its footprint. That additional market share is present at a critical time for the HVAC industry.
The top five hyperscalers are projected to spend more than $650 billion on AI infrastructure this year. That money has to go somewhere, and it's difficult to imagine these companies suddenly pulling the plug on AI spending in 2027. This is a multiyear megatrend, and Comfort Systems USA is well-positioned for it.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.
Key Takeaways FIX and EMCOR are benefiting from rising demand for AI, data center and critical facility projects.Comfort Systems posted record Q1 revenues, a $12.45B backlog and stronger margin expansion.FIX offers faster earnings growth, modular construction gains and stronger cash generation than EMCOR. The growing need for data centers, AI infrastructure, semiconductor manufacturing and critical facility upgrades has created a favorable backdrop for mechanical, electrical and HVAC infrastructure companies. Contractors with strong execution capabilities and exposure to these long-term investment themes are benefiting from rising project demand and expanding backlogs. Comfort Systems USA (FIX - Free Report) and EMCOR Group (EME - Free Report) are among the biggest beneficiaries of this trend.
Both companies provide mechanical, electrical and building services across commercial, industrial and institutional markets. They continue to report record revenues, healthy backlogs and improving profitability as customers invest in mission-critical infrastructure. Yet, despite their similarities, their growth strategies, end-market exposure and valuation profiles differ in meaningful ways.
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 has transformed itself from a traditional HVAC contractor into one of the country's leading providers of mechanical, electrical and plumbing (MEP) solutions for advanced manufacturing, semiconductor plants, AI data centers, healthcare and industrial facilities. Approximately three-fourths of its business now comes from industrial projects, giving it significant exposure to some of the fastest-growing construction markets.
The company's first-quarter 2026 results once again demonstrated exceptional execution. Revenues jumped 56% year over year to a record $2.87 billion, while earnings more than doubled to $10.51 per share. Same-store revenues increased 51%, reflecting broad-based demand rather than acquisition-driven growth. Operating cash flow reached nearly $389 million, a remarkable turnaround from the prior-year outflow, highlighting the company's strong cash-generation capabilities.
Perhaps the most encouraging indicator is backlog. Comfort Systems ended the quarter with a record backlog of $12.45 billion, nearly doubling from a year ago despite faster project execution. Management noted that recent bookings, healthy customer pipelines and persistent demand support optimism for the coming quarters. The company's exposure to technology customers remains particularly strong as AI-driven data center construction continues to accelerate.
Another competitive advantage is its growing modular construction capability. Prefabricated mechanical and electrical systems help customers shorten construction schedules while improving labor productivity, making Comfort Systems an attractive partner for large, time-sensitive projects such as semiconductor fabs and hyperscale data centers. The company also continues to benefit from onshoring investments and expanding manufacturing activity across the United States.
Profitability also continues to improve. Gross margin expanded 430 basis points (bps) year over year to 26.3%, operating margin climbed 560 bps to 17%, and both mechanical and electrical businesses posted healthy margin gains. Strong project execution, favorable project closeouts and operating leverage have supported these improvements, while management believes margins should remain within their recent strong range.
Financial strength further supports the investment case. Alongside generating robust free cash flow, Comfort Systems recently increased its quarterly dividend, reflecting management's confidence in future earnings while maintaining a strong balance sheet.
The primary challenge is valuation. After an exceptional rally, investor expectations have become very high. The company also acknowledged that revenue comparisons will become more difficult during the second half of 2026 as it laps exceptionally strong growth. Any moderation in AI-related project spending or execution delays could lead to increased share-price volatility.
The Case for EMCOR StockEMCOR remains one of North America's most diversified specialty contractors, providing mechanical and electrical construction, industrial services and building services across multiple end markets. This broader business mix offers greater diversification while reducing dependence on any single customer group.
The company's first-quarter 2026 results were also impressive. Revenues increased nearly 20% to a record $4.63 billion, while adjusted operating performance continued to improve across construction and services businesses. Earnings per share rose 30% year over year as disciplined execution, strong labor management and favorable project mix supported higher profitability.
Like Comfort Systems, EMCOR is benefiting significantly from AI infrastructure investments. Management highlighted exceptionally strong demand for data centers, cloud infrastructure and digital transformation projects, stating that it sees no signs of slowing activity in these markets. Mechanical construction also continues to benefit from rising liquid-cooling requirements for AI data centers, an increasingly important growth opportunity.
Importantly, EMCOR's opportunities extend well beyond AI. The company continues to win projects across healthcare, institutional facilities, water and wastewater infrastructure, manufacturing and commercial construction. This diversified project portfolio provides greater stability should any one market experience slower growth. Remaining performance obligations or RPOs reached a record $15.62 billion, providing excellent revenue visibility while reflecting strong bookings across multiple sectors.
Management's confidence is also evident in its higher 2026 guidance. EMCOR increased both revenue and earnings outlooks following first-quarter results, supported by strong execution and favorable project visibility. The balance sheet remains healthy, allowing continued investment in organic growth while maintaining disciplined capital allocation.
However, EMCOR's larger size naturally makes sustaining very high growth rates more difficult. Although AI infrastructure remains a major growth driver, the company is expected to generate considerably slower earnings growth than Comfort Systems over the next two years. Its operating margins also remain below those achieved by Comfort Systems, reflecting differences in business mix and project composition.
FIX vs. EME: Price Momentum Shows Investors' ConfidenceBoth stocks have significantly outperformed the broader market in 2026. Comfort Systems has surged 110.8% year to date, substantially outperforming EMCOR's still-impressive 36.7% gain. Both have also comfortably exceeded the Zacks Construction sector's 16.9% advance and the S&P 500's 9.7% rise. The stronger rally suggests investors increasingly view Comfort Systems as one of the biggest beneficiaries of AI-driven infrastructure spending.
FIX vs. EME Price Performance (YTD)
Image Source: Zacks Investment Research
Premium Valuation Reflects Higher Growth ExpectationsSuperior growth rarely comes cheaply. Comfort Systems currently trades at 41.46X forward 12-month earnings, well above EMCOR's 27.2X. Both stocks trade at premiums to the Zacks Construction sector average of 22.09X and the S&P 500's 21.53X.
While EMCOR offers the more attractive valuation, Comfort Systems' premium appears supported by its faster earnings growth, stronger margin expansion and exceptional backlog momentum.
FIX vs. EME Valuation – P/E F12M
Image Source: Zacks Investment Research
FIX & EME: Earnings Estimate Trends Continue to ImproveAnalysts remain optimistic about both companies. Over the past 30 days, the Zacks Consensus Estimate for Comfort Systems' 2026 EPS has increased to $43.08 from $42.74, implying 49.2% annual growth, alongside 30.5% revenue growth. Another 21.4% earnings growth is projected for 2027.
FIX EPS Estimate
Image Source: Zacks Investment Research
Estimates for EMCOR's 2026 EPS have also moved higher, rising to $29.22 from $28.67 over the same period. However, projected earnings growth of 13% in 2026 and 11.2% in 2027 trails Comfort Systems by a considerable margin.
EME EPS Estimate
Image Source: Zacks Investment Research
FIX vs. EME: Which Stock Looks Better Positioned?Both companies remain among the highest-quality infrastructure contractors in today's market. EMCOR offers excellent diversification, record remaining performance obligations, improving guidance and a more attractive valuation. Investors seeking a relatively balanced risk-reward profile may find EMCOR appealing.
Nevertheless, Comfort Systems appears to hold the stronger long-term investment case. Its exposure to AI data centers, semiconductor manufacturing and advanced industrial projects is translating into faster revenue growth, stronger margin expansion, record backlog growth and significantly higher earnings momentum. The company's superior cash generation, expanding modular construction capabilities and accelerating analyst estimate revisions further strengthen its outlook.
FIX, sporting a Zacks Rank #1 (Strong Buy), appears better positioned to deliver superior long-term shareholder returns despite its richer valuation compared to EMCOR, which carries a Zacks Rank #2 (Buy). For investors willing to pay a premium for stronger growth and industry-leading execution, Comfort Systems remains the better buy today. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy 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.
Our proprietary system currently recommends Comfort Systems (FIX - Free Report) as one such stock. This company not only has a favorable Growth Score, but also 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 GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. 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 61.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 49.2% this year, crushing the industry average, which calls for EPS growth of 7.4%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising 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 0.5% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Comfort Systems a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Comfort Systems well for outperformance, so growth investors may want to bet on it.
HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX) (the “Company”), a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, today announced that Craig Sasser, currently Regional Vice President – Atlantic Region, will be appointed to serve as Chief Operating Officer, effective July 1, 2026. Trent T. McKenna will continue to serve as President of the Company.
Brian Lane, the Company's Chief Executive Officer, commented, “I’m thrilled to congratulate Craig on his new role. Craig is an ideal fit to be COO, as he is a proven leader whose contributions and deep industry knowledge have been invaluable to Comfort Systems. He will serve a pivotal role in positioning the Company for long-term growth and success.”
The Company further announced that Briston Blair will transition from his current role as the Company’s Senior Vice President – Innovation & Strategy to the role of the Company’s Chief Strategy & Innovation Officer, effective as of July 1, 2026.
Mr. Lane said, “Briston has been a driving force behind many of our strategy and innovation initiatives, and this promotion reflects the significant contributions he has made to our Company’s success. I am confident that, as Chief Strategy & Innovation Officer, he will continue to identify novel opportunities to create value for our stakeholders.”
Mr. Sasser has served as a Regional Vice President for the Company since he joined in September 2018 and has held responsibility for both the North and Atlantic regions. Prior to joining the Company, Mr. Sasser spent 34 years with a major MEP company where he started his career in project management and ultimately led the Mid-Atlantic region. Mr. Sasser earned a Bachelor of Science degree in Construction Management from Purdue University and completed the MCAA Advanced Leadership Institute at Babson College.
Mr. Blair has served as the Company’s Senior Vice President – Innovation & Strategy since January 2022. Prior to his current position, Mr. Blair served as Regional Vice President for the Company and Senior Growth Strategy & Corporate Development Advisor of the Company. Mr. Blair earned a Bachelor of Arts degree in Communications from The University of North Carolina at Chapel Hill and his MBA from East Carolina University.
Comfort Systems USA® is a premier provider of business solutions addressing workplace comfort, with 197 locations in 143 cities around the nation. For more information, visit the Company’s website at www.comfortsystemsusa.com.
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?
Let's take a look at what these Wall Street heavyweights have to say about Comfort Systems (FIX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Comfort Systems currently has an average brokerage recommendation (ABR) of 1.18, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.18 approximates between Strong Buy and Buy.
Of the 11 recommendations that derive the current ABR, 10 are Strong Buy, representing 90.9% 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.
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.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks 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?In terms of earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $43.08.
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.
I initiate coverage of Comfort Systems USA with a strong buy rating and a $2,415 price target, implying 26% upside. My growth drivers are data center and technology infrastructure, advanced manufacturing demand, modular and prefabrication capacity, service and retrofit work and electrical capability. I estimate these drivers can contribute about $629.75 million of incremental EBITDA taking the company toward forward EBITDA estimate of $2.73 billion over the next 12 to 18 months.
Comfort Systems (FIX - Free Report) closed the most recent trading day at $1,967.41, moving +1.84% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Coming into today, shares of the heating, ventilation and air conditioning company had gained 5.24% in the past month. In that same time, the Construction sector gained 3.92%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of Comfort Systems in its upcoming release. On that day, Comfort Systems is projected to report earnings of $10.38 per share, which would represent year-over-year growth of 58.96%. At the same time, our most recent consensus estimate is projecting a revenue of $2.94 billion, reflecting a 35.42% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $43.08 per share and a revenue of $11.88 billion, indicating changes of +49.17% and +30.51%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comfort Systems. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.5% increase. Comfort Systems is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Comfort Systems currently has a Forward P/E ratio of 44.84. This signifies a premium in comparison to the average Forward P/E of 23.31 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 43, putting it in the top 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Comfort Systems (FIX - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Comfort Systems is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for FIX's full-year earnings has moved 18.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, FIX has moved about 110.8% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 17% on a year-to-date basis. As we can see, Comfort Systems is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Sterling Infrastructure (STRL - Free Report) . The stock is up 181.5% year-to-date.
In Sterling Infrastructure's case, the consensus EPS estimate for the current year increased 44.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 7 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, this group has gained an average of 46.9% so far this year, meaning that FIX is performing better in terms of year-to-date returns.
Sterling Infrastructure, however, belongs to the Engineering - R and D Services industry. Currently, this 22-stock industry is ranked #72. The industry has moved +39.9% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Comfort Systems and Sterling Infrastructure as they could maintain their solid performance.
Comfort Systems USA, Inc. FIX is generating record earnings and cash flow, giving management more flexibility than ever in allocating capital. The key question for investors is whether the company should prioritize shareholder returns through dividends and buybacks or continue investing aggressively in future growth.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Comfort Systems (FIX - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Comfort Systems currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if FIX is a promising momentum pick, let's examine some Momentum Style elements to see if this heating, ventilation and air conditioning company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For FIX, shares are up 1.83% over the past week while the Zacks Building Products - Air Conditioner and Heating industry is up 1.41% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.26% compares favorably with the industry's 1.93% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Comfort Systems have increased 38.61% over the past quarter, and have gained 289.7% in the last year. On the other hand, the S&P 500 has only moved 14.27% and 27.78%, respectively.
Investors should also pay attention to FIX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. FIX is currently averaging 420,233 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with FIX.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost FIX's consensus estimate, increasing from $36.53 to $43.08 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that FIX is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Comfort Systems on your short list.
Comfort Systems (FIX - Free Report) closed at $1,877.61 in the latest trading session, marking a +1.85% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Coming into today, shares of the heating, ventilation and air conditioning company had lost 9.74% in the past month. In that same time, the Construction sector lost 1.37%, while the S&P 500 lost 0.23%.
The investment community will be paying close attention to the earnings performance of Comfort Systems in its upcoming release. It is anticipated that the company will report an EPS of $10.38, marking a 58.96% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.94 billion, up 35.42% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $43.08 per share and a revenue of $11.88 billion, indicating changes of +49.17% and +30.51%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Comfort Systems. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.5% higher. At present, Comfort Systems boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Comfort Systems is holding a Forward P/E ratio of 42.79. This denotes a premium relative to the industry average Forward P/E of 23.16.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, seven are Strong Buy, representing 77.8% 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.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
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.
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 Worth Investing In?Looking at the earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 16.5% over the past month to $42.74.
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 generated 90% of Q1 2026 revenues from construction-driven projects.FIX backlog surged 80.8% year over year to a record $12.45 billion in Q1 2026.Data center and advanced technology projects contributed more than half of FIX revenues. Comfort Systems USA, Inc. (FIX - Free Report) continues riding a powerful wave of construction demand, but investors are beginning to question whether the current pace of new-build activity can remain sustainable. Its latest results reveal an increasingly construction-heavy revenue mix, driven largely by hyperscale data center and advanced technology projects.
In the first quarter of 2026, construction activity accounted for roughly 90% of FIX’s total revenues, with projects tied to new buildings representing 75% of sales. Advanced technology markets, dominated by data center work, contributed more than half of quarterly revenues, highlighting the company’s growing exposure to one of the hottest infrastructure themes in the market. That demand translated into impressive financial performance, with revenues surging 56% year over year to $2.87 billion, while diluted earnings per share more than doubled to $10.51.
Backlog also climbed to a record $12.45 billion as of the first quarter of 2026, up 80.8% year over year from $6.89 billion. This signaled that customers continue committing capital to large-scale projects despite macro uncertainty. Still, some caution may be warranted. Management acknowledged that comparisons become tougher in the second half of 2026 after several exceptionally strong quarters. In addition, construction-heavy businesses remain vulnerable to project timing delays, labor shortages and shifts in customer spending patterns.
However, Comfort Systems appears better positioned than many peers. Its expanding modular construction capabilities, national workforce flexibility and growing collaboration between mechanical and electrical operations could help the company sustain efficiency and profitability even if growth moderates.
For now, new-build demand remains exceptionally strong. The bigger question is not whether demand is slowing today, but how long the current data center construction cycle can continue at this extraordinary pace.
Comfort Systems, Quanta & AECOM: Infrastructure Race OnComfort Systems is seeing exceptional momentum from data center and advanced technology construction, supported by a rapidly expanding backlog and strong demand for mechanical, electrical and modular solutions. Given this environment, it still competes with renowned market players, including Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) .
Quanta benefits more from the infrastructure side of the cycle, leveraging investments in power grids, utility modernization and communications networks needed to support AI-driven electricity demand. Its backlog strength reflects long-duration energy and transmission projects rather than commercial building construction.
AECOM, meanwhile, offers broader exposure across engineering, infrastructure design and program management services. It benefits from public infrastructure spending, transportation modernization and environmental projects, giving it a more diversified and less construction-concentrated growth profile compared with Comfort Systems and Quanta.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 101.8% year to date, significantly 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 40.93, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $42.74 and $50.89 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 48% and 19.1%, 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.
On May 28, 2026, we present a DCF analysis for Comfort Systems USA Inc FIX , a company that has shown remarkable price performance over the past year. The stock has appreciated significantly, with a year-to-date increase of 100.2% and a staggering 285.5% rise over the past year. Here are some key highlights from our analysis:
DCF Earnings-based intrinsic value of $2668.99 compared to the current price of $1867.09, indicating a margin of safety of -68.3%. DCF Free Cash Flow (FCF)-based intrinsic value of $1223.22, providing a second opinion on valuation. GF Score™ of 86/100, suggesting a high reliability of the DCF inputs. What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of Comfort Systems USA Inc. In the first stage, we project the company's earnings growth over the next ten years, followed by a terminal phase where growth stabilizes. Below are the key assumptions used in our model:
Parameter Value Current EPS (TTM, excl. non-recurring) $35.50 10-Year Growth Rate 33.2% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we expect the EPS to grow at a rate of 33.2% per year for the next ten years, which is then discounted at a rate of 11%. The calculated value for this growth stage is $1105.81 per share. In the second stage, we assume a terminal growth rate of 4% for the following ten years, also discounted at 11%, leading to a terminal stage value of $1563.18 per share. The summary of our calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.2%, discounted at 11% $1105.81 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $1563.18 Intrinsic Value Growth + Terminal $2668.99 Comparing the current price of $1867.09 with our intrinsic value of $2668.99, we find that the stock is modestly overvalued, with a margin of safety of -68.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access 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 $1223.22. When we compare this with the earnings-based intrinsic value of $2668.99, we see a divergence in the two models. Both models indicate that the stock is modestly overvalued, with the FCF-based model showing a margin of safety of -52.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc is calculated at $655.39, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When we consider all three models—DCF earnings, DCF FCF, and GF Value™—there is a consensus that the stock is overvalued. For more information, visit the GF Value™ page.
What Does FIX's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtesting from 2006 to 2021. Below is a summary of FIX's GF Score™:
Metric Rating GF Score™ 86/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The predictability rank for FIX is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For more details, visit the FIX stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as FIX, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.
What This Means for Investors In synthesizing the results from the three valuation models—DCF earnings, DCF FCF, and GF Value™—it is clear that Comfort Systems USA Inc is currently overvalued. The DCF earnings model suggests a significant discrepancy between intrinsic value and market price, while the FCF model supports this view. The GF Value™ further corroborates the overvaluation perspective.
For the full DCF analysis, visit the FIX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is FIX's intrinsic value based on DCF?
Answer: Both DCF and GF Value™ indicate that FIX is overvalued.
How reliable is the DCF model for FIX?
Answer: The predictability rank of 1/5 suggests that the DCF model is less reliable for FIX.
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].
In the latest trading session, Comfort Systems (FIX - Free Report) closed at $1,828.21, marking a -1.45% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.22%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.21%.
The heating, ventilation and air conditioning company's shares have seen an increase of 0.81% over the last month, not keeping up with the Construction sector's gain of 0.87% and the S&P 500's gain of 6.04%.
Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $10.3, signifying a 57.73% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 35.42% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $42.74 per share and a revenue of $11.88 billion, indicating changes of +47.99% and +30.48%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Comfort Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Comfort Systems currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Comfort Systems is at present trading with a Forward P/E ratio of 43.41. This indicates a premium in contrast to its industry's Forward P/E of 21.79.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FIX in the coming trading sessions, be sure to utilize Zacks.com.
Comfort Systems USA rated BUY with a $2,150 12-month price target, leveraging a recent 14% correction as an attractive entry into a secular growth story. FIX's growth is underpinned by surging AI data center construction and US manufacturing reshoring, with technology clients now 56% of Q1 2026 revenues. Revenues surged 29.5% in 2025 and 56% YoY in Q1 2026, with gross margins expanding to 24.1% and a record $12.5Bn backlog driven by strong order intake.
Comfort Systems USA delivered 56.5% YoY revenue growth in Q1 2026, driven by strong performance in both electrical and mechanical segments. Robust demand, a record backlog, and secular AI infrastructure tailwinds underpin double-digit topline growth visibility through and beyond FY26. Execution and operational efficiency remain a key focus for profitability growth in the future.
Comfort Systems USA, Inc. FIX is riding one of the strongest growth waves in its history, but its increasing reliance on technology customers raises an important question: could concentration risk eventually become a concern? The company delivered an exceptional first quarter of 2026, with revenues soaring 56% year over year to $2.87 billion and earnings per share more than doubling to $10.51.
On June 03, 2026, we present a detailed DCF analysis for Comfort Systems USA Inc FIX . The company has shown impressive price performance, with a year-to-date increase of 102.0% and a remarkable 295.6% rise over the past year.
DCF Earnings-based intrinsic value of $2668.99 vs current price of $1883.26 (margin of safety: -69.8%) DCF FCF-based intrinsic value of $1223.22 vs current price (second opinion: -54.0% margin of safety) GF Score™ of 86/100 indicates strong reliability of the DCF inputs What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model for Comfort Systems USA Inc employs a two-stage approach to evaluate the intrinsic value of the stock. The first stage considers a high growth rate for the initial ten years, while the second stage accounts for a more stable growth rate thereafter. Below is a summary of the key assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $35.50 10-Year Growth Rate 33.2% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.2%, discounted at 11% $1105.81 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $1563.18 Intrinsic Value Growth + Terminal $2668.99 Comparing the current price of $1883.26 to the intrinsic value of $2668.99 indicates that the stock is modestly overvalued, with a margin of safety of -69.8%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than 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 $1223.22. When compared with the earnings-based intrinsic value of $2668.99, the two models indicate a consensus that the stock is modestly overvalued, with a margin of safety of -54.0%. This suggests that both valuation approaches are aligned in their assessment of the stock's current price relative to its intrinsic value.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc is calculated at $657.16, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that the stock is overvalued at its current price. For more information, visit the GF Value™ page.
What Does FIX's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021.
Metric Rating GF Score™ 86/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The predictability rank for Comfort Systems USA Inc is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For additional insights, visit the FIX stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Comfort Systems USA Inc, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, it is clear that Comfort Systems USA Inc is currently overvalued. The consensus from all three valuation models suggests caution for potential investors.
For the full DCF analysis, visit the FIX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is FIX's intrinsic value based on DCF?
Answer: Both DCF and GF Value™ indicate that FIX is overvalued.
How reliable is the DCF model for FIX?
Answer: The predictability rank of 1/5 suggests that the DCF model is less reliable for FIX.
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].
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Comfort Systems (FIX - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Comfort Systems is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FIX's full-year earnings has moved 17.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, FIX has returned 101.8% so far this year. At the same time, Construction stocks have gained an average of 12.6%. As we can see, Comfort Systems is performing better than its sector in the calendar year.
Another stock in the Construction sector, Sterling Infrastructure (STRL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 185.9%.
The consensus estimate for Sterling Infrastructure's current year EPS has increased 40.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, which includes 7 individual stocks and currently sits at #43 in the Zacks Industry Rank. Stocks in this group have gained about 40.3% so far this year, so FIX is performing better this group in terms of year-to-date returns.
On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 22-stock industry is currently ranked #68. The industry has moved +37.9% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Comfort Systems and Sterling Infrastructure as they could maintain their solid performance.
