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3 Companies Enjoying Stellar Sales Growth: EME, FIX, ANET

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Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.

When it comes to top line strength, three companies – Comfort Systems USA (FIX - Free Report) , Arista Networks (ANET - Free Report) , and EMCOR Group (EME - Free Report) – have all posted sizable sales growth rates over recent years.

In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.

FIX Keeps Data Centers Cool

Comfort Systems USA, a current Zacks Rank #1 (Strong Buy), offers comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services.

The company provides chillers, cooling towers, and other critical components in data centers, making it a somewhat under-the-radar play on the AI frenzy. Analysts have been notably bullish concerning its current fiscal year, with the $13.79 Zacks Consensus EPS estimate up 50% over the last year and suggesting 60% Y/Y growth.

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Image Source: Zacks Investment Research

Top line revisions have moved similarly, also brightening its outlook in a big way. FIX’s sales growth has been remarkable over recent quarters, posting double-digit percentage year-over-year growth rates in 12 consecutive periods.

Sales have exploded in recent quarters, as shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

And the CEO maintains a rosy outlook, delivering this statement following its Q2 results, ‘Same-store backlog is 25% above last year, demand continues at unprecedented levels and our job pipelines are robust. Considering these factors, we remain optimistic that our strong results will continue in the second half of 2024 and into 2025.’

ANET Shares Reflect AI Play

Arista Networks, a current Zacks Rank #2 (Buy), is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Analysts have taken their earnings expectations higher across the board.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares have been red-hot over the last year thanks to robust quarterly results stemming from unrelenting demand, gaining nearly 100% compared to the S&P 500’s 28% gain. The company again posted strong results in its latest release, enjoying margin expansion alongside a 30% pop in EPS.

The company’s margins have been moving in the right direction over recent periods, as shown below. Please note that the chart is on a trailing twelve-month basis.

Zacks Investment Research
Image Source: Zacks Investment Research

And the strong sales growth is slated to continue for some time thanks to red-hot demand, with the $6.8 billion expected in its current fiscal year up 8% over the last year and suggesting 17% growth. Peeking a bit ahead, the company is expected to see another 20% sales increase in FY25.

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Image Source: Zacks Investment Research

EMCOR Reports Record Results

EMCOR, a Zacks Rank #1 (Strong Buy), is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services for a diverse range of businesses.

Sales expectations melted higher after a recent guidance upgrade that followed its latest record-breaking quarterly release. The company posted both record sales and diluted EPS.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares could interest those with an appetite for income, currently yielding a modest 0.3% annually. While the yield is nothing to write home about, the company’s 25% five-year annualized dividend growth rate overall reflects a shareholder-friendly nature.

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Image Source: Zacks Investment Research

Steady demand has kept the company’s top line healthy, seeing consistent growth over recent years.

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Image Source: Zacks Investment Research

Bottom Line

Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.

And when it comes to strong sales trends, all three companies above – Comfort Systems USA (FIX - Free Report) , Arista Networks (ANET - Free Report) , and EMCOR Group (EME - Free Report) – precisely fit the criteria.


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EMCOR Group, Inc. (EME) - free report >>

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