Zacks Investment Research·2025-12-19 17:47Investment Recommendation - Zach's equity strategist recommends buying the dip in Comfort Systems USA (FIX) and Anigo Eagle Mines (AEM), both considered capital efficient stocks [1][11] - Both stocks have shown year-to-date gains of over 100% despite recent pullbacks [1] - The recommendation is supported by positive EPS revisions, magnifying expectations of high double-digit earnings growth in fiscal years 2025 and 2026 [11] Comfort Systems USA (FIX) Analysis - Comfort Systems dominates as a provider of comprehensive heating, ventilation, and air conditioning systems and services [2] - The stock has increased over 670% in the last three years and has traded at an all-time peak of over $1,000 [3] - Return on invested capital (ROIC) has soared to 35.9%, significantly higher than the industry average of 6% [4][5] - Invested capital funds are at new peaks of $2.75 billion [6] - Free cash flow conversion rate is above 80%, indicating efficiency in turning accounting profits into cash [6] - The company has returned over $500 million to shareholders this year via stock buybacks and a modest but increasing annual dividend, currently at $2.40 per share, which has grown by 39% in the last 5 years [7] Anigo Eagle Mines (AEM) Analysis - Anigo Eagle Mines has capitalized on historically high gold prices and has emerged as a leader among gold miners [2][7] - The stock hit a high of $187 a share in October, with total returns of more than 200% in the last three years [7] - Return on invested capital (ROIC) is currently at new peaks of 12%, surpassing the basin material sector's average of 4.33% [8] - Invested capital has swelled to record highs of $3 billion [9] - Free cash flow conversion rate is 106% [9] - The gold miner has returned nearly $900 million to shareholders in 2025 through its 0.96% annual dividend yield and stock repurchases [10]