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Comfort Systems USA, Inc. (FIX) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Comfort Systems (FIX - Free Report) ? Shares have been on the move with the stock up 0.6% over the past month. The stock hit a new 52-week high of $152.49 in the previous session. Comfort Systems has gained 28.2% since the start of the year compared to the 14% move for the Zacks Construction sector and the 33.6% return for the Zacks Building Products - Air Conditioner and Heating industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 26, 2023, Comfort Systems reported EPS of $1.51 versus consensus estimate of $1.07 while it beat the consensus revenue estimate by 4.15%.
For the current fiscal year, Comfort Systems is expected to post earnings of $7.17 per share on $4.89 billion in revenues. This represents a 35.54% change in EPS on a 18.12% change in revenues. For the next fiscal year, the company is expected to earn $8.14 per share on $5.2 billion in revenues. This represents a year-over-year change of 13.53% and 6.39%, respectively.
Valuation Metrics
Comfort Systems may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Comfort Systems has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24X. On a trailing cash flow basis, the stock currently trades at 19.3X versus its peer group's average of 19.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Comfort Systems currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Comfort Systems passes the test. Thus, it seems as though Comfort Systems shares could have potential in the weeks and months to come.
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Comfort Systems USA, Inc. (FIX) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Comfort Systems (FIX - Free Report) ? Shares have been on the move with the stock up 0.6% over the past month. The stock hit a new 52-week high of $152.49 in the previous session. Comfort Systems has gained 28.2% since the start of the year compared to the 14% move for the Zacks Construction sector and the 33.6% return for the Zacks Building Products - Air Conditioner and Heating industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 26, 2023, Comfort Systems reported EPS of $1.51 versus consensus estimate of $1.07 while it beat the consensus revenue estimate by 4.15%.
For the current fiscal year, Comfort Systems is expected to post earnings of $7.17 per share on $4.89 billion in revenues. This represents a 35.54% change in EPS on a 18.12% change in revenues. For the next fiscal year, the company is expected to earn $8.14 per share on $5.2 billion in revenues. This represents a year-over-year change of 13.53% and 6.39%, respectively.
Valuation Metrics
Comfort Systems may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Comfort Systems has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24X. On a trailing cash flow basis, the stock currently trades at 19.3X versus its peer group's average of 19.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Comfort Systems currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Comfort Systems passes the test. Thus, it seems as though Comfort Systems shares could have potential in the weeks and months to come.