Comfort Systems USA(US:FIX) ZACKS·2026-01-20 17:11Core Insights - Comfort Systems USA, Inc. (FIX) is expanding its focus on data center construction, which is becoming a significant driver of its growth [1][4] - The company is experiencing strong demand in manufacturing markets, but data center opportunities are increasingly attractive due to the technology sector's growth [1][2] Revenue and Market Trends - Technology-related projects, including data center construction, accounted for approximately 42% of total revenues in the first nine months of 2025, up from 32% in the previous year [2][9] - The surge in demand for data centers is driven by the rapid adoption of artificial intelligence, cloud computing, big data, and digital services, leading to a construction boom [2] Backlog and Demand - Comfort Systems' backlog reached a record $9.4 billion at the end of Q3 2025, with strong bookings in the technology sector [3][9] - The company has a robust data center pipeline with no signs of a near-term slowdown in bidding activity or customer demand [3][9] Competitive Landscape - Competitors like Sterling Infrastructure, Inc. and Quanta Services, Inc. are also increasing their focus on technology-related construction, intensifying competition in the market [5][6][7] - Sterling reported a 125% year-over-year increase in data center revenues in Q3 2025, highlighting strong demand for high-capacity facilities [6] Stock Performance and Valuation - FIX shares have increased by 105.6% over the past six months, outperforming industry peers and major indices [8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 36.63, indicating a premium compared to industry peers [11] Earnings Estimates - The earnings estimate for FIX for 2026 remains unchanged at $30.61 per share, reflecting a year-over-year growth of 16.4% [13]