Comfort Systems USA FIX: Should You Chase the Rally?

Comfort Systems USA (FIX) has seen a 73.3% surge in the past three months, outperforming the broader Zacks Building Products - Air Conditioner and Heating industry and Construction sector benchmarks. FIX's national scale, deep industrial and tech-sector exposure, and large-scale project capacity give it a competitive edge. Its record $6.9 billion backlog, up 16% year over year, provides visibility into 2026 and supports sustained revenue and earnings growth. FIX's modular business accounted for 19% of total revenues in Q1 2025, and recent acquisitions, such as Century Contractors, enhance its geographic reach and earnings power.

Comfort Systems USA (FIX) has experienced a remarkable surge in its stock price over the past three months, with shares rising by 73.3%. This significant performance has outpaced the broader Zacks Building Products - Air Conditioner and Heating industry, which gained 37.1%, and the Construction sector benchmarks. FIX's national scale, deep industrial and tech-sector exposure, and large-scale project capacity have contributed to its competitive edge [1].

The company's stock performance has been particularly impressive when compared to its peers. While AAON gained just 3.1%, Watsco declined by 1.2%, and EMCOR Group saw a 54.4% increase, FIX's outperformance stands out. Comfort Systems' strong backlog, which ended the first quarter at a record $6.9 billion, provides visibility into 2026 and supports sustained revenue and earnings growth [1].

The modular business accounted for 19% of total revenues in Q1 2025, while recent acquisitions, such as Century Contractors, have expanded the company's geographic reach and earnings power. These strategic moves position FIX well for future growth.

Looking ahead, investors will be closely watching the upcoming earnings release. The company's earnings per share (EPS) are projected to be $4.68, reflecting a 25.13% increase from the same quarter last year. Revenue is expected to reach $1.95 billion, up 7.86% from the prior-year quarter. For the full year, analysts are expecting earnings of $19.28 per share and revenue of $7.72 billion [2].

Despite the strong performance, FIX is currently trading at a Forward P/E ratio of 27.81, which is a discount to the industry average of 31.1. This valuation suggests that the stock may offer value to investors seeking long-term growth [2].

In conclusion, Comfort Systems USA's impressive stock performance, strong backlog, and strategic acquisitions make it an attractive option for investors. The upcoming earnings release will provide further insights into the company's financial health and growth prospects.

References:
[1] https://finance.yahoo.com/quote/FIX/news/
[2] https://www.nasdaq.com/articles/heres-why-comfort-systems-fix-fell-more-broader-market-1