3 Air Conditioner Stocks to Buy on the Dip Before They Heat Up

Industry Overview - Air conditioner stocks have been strong investments recently, with expectations for continued growth as temperatures rise [1] - Demand for air conditioning solutions is anticipated to increase, especially with predictions that 2024 could be the warmest year on record [1] Company: Comfort Systems USA (FIX) - Comfort Systems USA reported a 31% revenue increase to $1.5 billion in Q1 2024, exceeding estimates by nearly 5% [2] - Earnings per share reached $2.69, surpassing expectations by almost 30% [2] - Same-store revenue growth was 23%, and the electrical segment achieved record margins of 22.6% [2] - The company has a backlog of $5.9 billion, with expectations for mid-teens same-store revenue growth for the full year [3] Company: Trane Technologies (TT) - Trane Technologies achieved record bookings of over $5 billion in Q1, a 17% organic increase [5] - The company exceeded top-line estimates by nearly 5.6% and expanded adjusted operating margins by 230 basis points [5] - Adjusted earnings per share grew by 38%, and the stock has increased by 80% over the past year [5] - The company offers a 1% dividend yield, which is attractive to investors amid worsening global heatwaves [5] Company: AAON (AAON) - AAON specializes in premium commercial and industrial HVAC equipment and is positioned to benefit from electrification trends [6] - Despite a 16% decline from its highs, AAON has rebounded over 10% from its lows, indicating potential for further growth [6] - The company missed Q1 revenue estimates, reporting $262.1 million, which was $22.7 million short [7] - AAON's order trends remain solid, with a growing backlog and opportunities in the data center market [7]