The Zacks Construction sector is poised to release its second-quarter results amid a challenging environment marked by high interest rates and rising material and labor costs. Although the shortage of existing homes for sale is somewhat driving single-family residential construction, the uncertainty surrounding the Federal Reserve's rate cuts remains a significant obstacle. Nevertheless, the sector is benefiting from a substantial infrastructure drive led by the U.S. government, as well as growth in the tel ...

Comfort Systems has an impressive track record of surpassing earnings expectations, exceeding the consensus mark in each of the last four quarters. The average surprise over this period is 20%, as shown in the chart below. The Zacks Consensus Estimate for the second-quarter EPS has increased to $3.11 from $3.04 over the past seven days. The estimated figure indicates a 61.1% increase from the year-ago EPS of $1.93. Also, the consensus mark for revenues is $1.66 billion, indicating 27.7% year-over-year growt ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Comfort Systems (FIX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. The Zacks Rank is a proven system that emphasizes earnings estimates an ...

Core Viewpoint - Comfort Systems has a strong track record of exceeding earnings estimates, with an average surprise of 18.82% over the last two quarters [1] Earnings Performance - For the last reported quarter, Comfort Systems achieved earnings of $2.69 per share, surpassing the Zacks Consensus Estimate of $2.26 per share, resulting in a surprise of 19.03% [6] - In the previous quarter, the company was expected to report earnings of $2.15 per share but delivered $2.55 per share, yielding a surprise of 18.60% [6] Earnings ESP and Analyst Sentiment - Comfort Systems currently has an Earnings ESP of +2.25%, indicating a bullish outlook from analysts regarding the company's earnings prospects [3] - The positive Earnings ESP, combined with a Zacks Rank of 3 (Hold), suggests a high likelihood of another earnings beat in the upcoming report [3][7] Importance of Earnings ESP - The Earnings ESP is a critical metric to assess before a company's quarterly release, as it can enhance the probability of success in predicting earnings outcomes [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions which may provide more accurate predictions [8]

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Comfort Systems (FIX) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. Comfort Systems is one of 94 companies in the Construction group. The Construction group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank consider ...

Shares of the heating, ventilation and air conditioning company have depreciated by 7.22% over the course of the past month, underperforming the Construction sector's loss of 5% and the S&P 500's gain of 3.38%. The upcoming earnings release of Comfort Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 57.51% increase from the same quarter last year. It's also important for investors to be aware of any recent modifications to analyst ...

Comfort Systems USA, Inc.'s (FIX) shares have surged 56.1% in the year-to-date period, outperforming the Zacks Building Products - Air Conditioner and Heating industry's 17.7% growth. The share price trend can be compared with a few similar companies including Watsco, Inc. (WSO) , AAON, Inc. (AAON) , and EMCOR Group, Inc. (EME) , whose shares gained 8.9%, 14.3%, and 75.7%, respectively. Image Source: Zacks Investment Research Despite consistent investment activities and increased expense scenario, FIX focus ...

Core Viewpoint - Comfort Systems USA is positioned for long-term growth due to strong demand in the mechanical, electrical, and plumbing market, particularly from the technology sector, which is expected to drive revenue growth [2][4]. Company Background - Comfort Systems USA provides mechanical and electrical installation and maintenance services, focusing on HVAC systems, plumbing, electrical, construction, monitoring, and fire protection [3]. - The company operates two segments: Mechanical (78% of revenue) and Electrical (22% of revenue) [3]. Growth Catalysts - The technology sector is a significant growth driver, with the global AI market projected to grow at 19% annually, necessitating data center construction, which Comfort Systems is involved in [4]. - Recent acquisitions, including Summit Industrial and J&S Mechanical, are expected to contribute significantly to revenue and EBITDA, enhancing the company's modular construction capabilities [5]. - Comfort Systems has a record backlog of $5.9 billion, a 33% increase from the previous year, indicating strong future revenue potential [5]. Valuation - The company has a forward PE ratio of 26, higher than the industry average of 20.5, but a PEG ratio of 1.7 suggests reasonable valuation given its expected earnings growth [6]. - Consensus estimates project a 39% EPS growth for 2024, supported by acquisitions and organic growth, with a revenue increase of 28% anticipated [6]. - Profitability metrics are strong, with a ROE of 30% and ROIC of about 20%, alongside improved gross and operating margins [6]. Technical Perspective - The stock is currently in bullish territory, with a recent pullback from overbought conditions, and the upcoming Q2 earnings report is a potential catalyst for further stock appreciation [7]. - Positive guidance or new contracts could drive the stock higher, while missing estimates could lead to a sell-off [7]. Long-Term Investment Outlook - The combination of a strong backlog, recent acquisitions, and favorable market trends is expected to drive Comfort Systems' stock higher in the coming years [10].

The latest trading session saw Comfort Systems (FIX) ending at $316.31, denoting a -1.89% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.18%. The heating, ventilation and air conditioning company's shares have seen a decrease of 2.49% over the last month, surpassing the Construction sector's loss of 4.52% and falling behind the S&P ...

Shares of the heating, ventilation and air conditioning company have depreciated by 6.12% over the course of the past month, underperforming the Construction sector's loss of 3.41% and the S&P 500's gain of 3.96%. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. In terms of valuation, Comfort Systems is c ...