Latest news with #ComfortSystemsUSA
Yahoo
16-05-2025
- Business
- Yahoo
Q1 Earnings Highs And Lows: Comfort Systems (NYSE:FIX) Vs The Rest Of The Construction and Maintenance Services Stocks
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the construction and maintenance services stocks, including Comfort Systems (NYSE:FIX) and its peers. Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies' offerings. The 12 construction and maintenance services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 5.9%. Luckily, construction and maintenance services stocks have performed well with share prices up 21.1% on average since the latest earnings results. Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services. Comfort Systems reported revenues of $1.83 billion, up 19.1% year on year. This print exceeded analysts' expectations by 4.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' backlog estimates and a solid beat of analysts' EPS estimates. Brian Lane, Comfort Systems USA's President and Chief Executive Officer, said, 'Our amazing teams across the United States continue to achieve world class performance. We are reporting earnings per share that exceed every past quarter, a remarkable accomplishment given that the first quarter is historically our seasonally weakest period. These results reflect a promising start to 2025. Per share earnings in the first quarter of 2025 was $4.75, more than 75% higher than the spectacular results we achieved in the first quarter of 2024. During the first quarter, we also made substantial payments to a key customer resulting in a long-expected normalization of our working capital.' Interestingly, the stock is up 23.3% since reporting and currently trades at $464.38. Read why we think that Comfort Systems is one of the best construction and maintenance services stocks, our full report is free. Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally. Great Lakes Dredge & Dock reported revenues of $242.9 million, up 22.3% year on year, outperforming analysts' expectations by 17.5%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Great Lakes Dredge & Dock achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.4% since reporting. It currently trades at $11.31. Is now the time to buy Great Lakes Dredge & Dock? Access our full analysis of the earnings results here, it's free. Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets. Matrix Service reported revenues of $200.2 million, up 20.6% year on year, falling short of analysts' expectations by 6.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations. Matrix Service delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 5.3% since the results and currently trades at $12.88. Read our full analysis of Matrix Service's results here. Known for constructing the Philadelphia Eagles' Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services. Tutor Perini reported revenues of $1.25 billion, up 18.8% year on year. This number beat analysts' expectations by 16.7%. It was an incredible quarter as it also recorded an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The stock is up 53.8% since reporting and currently trades at $36.35. Read our full, actionable report on Tutor Perini here, it's free. Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Construction Partners reported revenues of $571.7 million, up 53.9% year on year. This result surpassed analysts' expectations by 2.1%. Overall, it was a stunning quarter as it also put up a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Construction Partners scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 7% since reporting and currently trades at $99.05. Read our full, actionable report on Construction Partners here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
01-05-2025
- Business
- Yahoo
Is Comfort Systems USA (FIX) A Small-Cap Construction and Materials Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other small-cap construction and materials stocks. Saira Malik, Nuveen's head of equities and fixed income, joined 'Closing Bell' on CNBC on March 26 to discuss her investment strategy in the middle of this uncertain market. She emphasized that two dominant themes are shaping the second quarter of this year: policy uncertainty and questions surrounding the pace of the economic slowdown. Malik noted that markets have shown a little optimism after a rebound from correction territory. This was driven by investor expectations of watered-down tariffs and the return of the term 'transitory' regarding inflation effects from tariffs. However, she highlighted that the economy continues to slow. Given this, Malik prefers defensive market sectors, particularly infrastructure. She also identified municipal bonds as a favored fixed-income category. These appeal to local investors who seek stable income streams in the middle of this economic uncertainty. Malik also acknowledged the risk that continued negative sentiment about consumer weakness could become a self-fulfilling prophecy. She pointed out that the economy's recent strength has been driven by consumer spending and employment, with about half of payroll growth since 2019 coming from government jobs. The recent data on consumer spending, retail sales, and confidence have been weak, but consumers often express pessimism without reducing spending proportionally. Despite this, she stressed that the economy is slowing and warned that ongoing tariff uncertainty could cause a sharper economic downturn. However, she also mentioned potential upside from forthcoming tax cuts and deregulation, which could provide economic support. Malik explained that the market's recent optimism comes from increasing clarity about tariff implementation and targets. We first sifted through financial media reports, ETFs, and Insider Monkey's Q4 2024 hedge funds database reports to compile a list of the small-cap construction and materials stocks hedge funds are buying. For this article, we define small-cap stocks as those that trade between $10 billion and $30 billion, as of April 28. We then selected the top 15 stocks and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An engineer inspecting a newly renovated electrical installation. Market Capitalization as of April 28: $13.78 billion Number of Hedge Fund Holders: 50 Comfort Systems USA, Inc. (NYSE:FIX) is a construction services company that provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services. It serves the mechanical and electrical services industry in the US. It operates through two segments: Mechanical and Electrical. In Q1 2025, Comfort Systems (NYSE:FIX) made $1.83 billion in revenue, which was up 19.15% year-over-year. The Industrial sector accounted for 62% of this total revenue. Within this sector, Advanced Technology, which includes data centers and chip fabrication facilities, stands out as the largest component of overall revenue at 37%. This indicates that advanced technology projects are currently the single largest contributor to Comfort Systems' top line. Q1 2025 saw particularly strong bookings within the technology sub-sector of the Industrial market. Comfort Systems USA, Inc. (NYSE:FIX) anticipates continued strong demand from its tech customers and across the broader Industrial sector, which will contribute to the company's optimistic outlook for 2025 and into 2026. Overall, FIX ranks 3rd on our list of the small-cap construction and materials stocks hedge funds are buying. While we acknowledge the growth potential of FIX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FIX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-04-2025
- Business
- Yahoo
Comfort Systems's (NYSE:FIX) Q1: Strong Sales, Stock Jumps 10.2%
HVAC and electrical contractor Comfort Systems (NYSE:FIX) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 19.1% year on year to $1.83 billion. Its GAAP profit of $4.75 per share was 28.1% above analysts' consensus estimates. Is now the time to buy Comfort Systems? Find out in our full research report. Revenue: $1.83 billion vs analyst estimates of $1.76 billion (19.1% year-on-year growth, 4.2% beat) EPS (GAAP): $4.75 vs analyst estimates of $3.71 (28.1% beat) Adjusted EBITDA: $242.7 million vs analyst estimates of $200.7 million (13.3% margin, 20.9% beat) Operating Margin: 11.4%, up from 8.8% in the same quarter last year Free Cash Flow was -$109.1 million, down from $122.6 million in the same quarter last year Backlog: $6.89 billion at quarter end, up 16.5% year on year Market Capitalization: $12.54 billion Brian Lane, Comfort Systems USA's President and Chief Executive Officer, said, 'Our amazing teams across the United States continue to achieve world class performance. We are reporting earnings per share that exceed every past quarter, a remarkable accomplishment given that the first quarter is historically our seasonally weakest period. These results reflect a promising start to 2025. Per share earnings in the first quarter of 2025 was $4.75, more than 75% higher than the spectacular results we achieved in the first quarter of 2024. During the first quarter, we also made substantial payments to a key customer resulting in a long-expected normalization of our working capital.' Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services. Construction and maintenance services companies not only boast technical know-how in specialized areas but also may hold special licenses and permits. Those who work in more regulated areas can enjoy more predictable revenue streams - for example, fire escapes need to be inspected every five years. More recently, services to address energy efficiency and labor availability are also creating incremental demand. But like the broader industrials sector, construction and maintenance services companies are at the whim of economic cycles as external factors like interest rates can greatly impact the new construction that drives incremental demand for these companies' offerings. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Comfort Systems grew its sales at an incredible 21.4% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Comfort Systems's annualized revenue growth of 28.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We note Comfort Systems isn't alone in its success as the Construction and Maintenance Services industry experienced a boom, with many similar businesses also posting double-digit growth. We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Comfort Systems's backlog reached $6.89 billion in the latest quarter and averaged 30.5% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Comfort Systems's products and services but raises concerns about capacity constraints. This quarter, Comfort Systems reported year-on-year revenue growth of 19.1%, and its $1.83 billion of revenue exceeded Wall Street's estimates by 4.2%. Looking ahead, sell-side analysts expect revenue to grow 6.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Comfort Systems has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.5%, higher than the broader industrials sector. Analyzing the trend in its profitability, Comfort Systems's operating margin rose by 4.1 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Comfort Systems generated an operating profit margin of 11.4%, up 2.6 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Comfort Systems's EPS grew at an astounding 40.6% compounded annual growth rate over the last five years, higher than its 21.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into Comfort Systems's quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Comfort Systems's operating margin expanded by 4.1 percentage points over the last five years. On top of that, its share count shrank by 3.5%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Comfort Systems, its two-year annual EPS growth of 66.4% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, Comfort Systems reported EPS at $4.75, up from $2.69 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Comfort Systems's full-year EPS of $16.67 to grow 11%. We were impressed by how significantly Comfort Systems blew past analysts' backlog expectations this quarter. We were also excited its EPS outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid quarter. The stock traded up 10.2% to $415 immediately after reporting. Sure, Comfort Systems had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Comfort Systems USA, Inc. (FIX): Among Louis Navellier's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other Louis Navellier's stock picks with huge upside potential. Navellier & Associates is an independent money management firm founded in 1987 by renowned stock analyst Louis Navellier. Headquartered in Reno, Nevada, the firm has spent over three decades delivering disciplined, style-consistent investment strategies to both individual and institutional clients. Its core mission is to maximize returns while effectively managing excessive risk, offering customized portfolios built on a proprietary mix of quantitative and fundamental analysis. Distinct from firms that mimic market indexes, Navellier & Associates aims to outperform them, constructing portfolios that exhibit low correlation to standard benchmarks, greater diversification, and reduced overall volatility. Navellier's investment philosophy is based on a rigorous three-step, bottom-up stock selection methodology designed to identify inefficiencies and high-growth opportunities in the market. The first step in this process uses a proprietary quantitative screening system that evaluates market data and individual stock statistics, measuring risk through standard deviation and reward through alpha. This narrows the investment universe to stocks ranking in the top percentiles for favorable risk/reward characteristics. The second step employs fundamental analysis to target companies with strong earnings growth, healthy profit margins, and reasonable forward-looking price-to-earnings ratios. The third and final step involves a proprietary optimization model that strategically allocates portfolio holdings to maximize alpha and minimize volatility. This structured approach results in portfolios that are diversified across sectors and industries and are particularly suited for long-term investors aiming to achieve steady growth in varying market conditions. Louis Navellier, the firm's Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer, continues to oversee the portfolios he helped originate. A highly respected voice in the financial community, Navellier has published quantitative growth stock research since 1980. His insights have been widely disseminated across CNBC, Fox Business News, Bloomberg, and MarketWatch, and he has been profiled in leading financial publications such as Forbes, Fortune, Barron's, and The Wall Street Journal. His methodologies and career have also been spotlighted in books like Secrets of the Investment All-Stars and Investing Under Fire. Navellier & Associates manages more than $1 billion in private and institutional assets and is a trusted resource for high-net-worth individuals and organizations. The firm offers personalized portfolio reviews that include detailed analysis, risk assessments, and tailored investment recommendations. Portfolio sizes range from $100,000 to over $100 million, and all investment decisions are uniquely customized to align with each client's financial goals, preferences, and risk tolerance. This commitment to individualized service underscores the firm's belief that every investor deserves a strategy tailored to their unique financial journey. As of its latest 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm's top ten holdings represent 29.42% of the total portfolio, highlighting a focused yet strategically diversified investment approach rooted in decades of systematic analysis and seasoned market expertise. We searched through Navellier & Associates' Q4 2024 13F filings to identify Louis Navellier's stock picks with the highest upside potential. From the resultant data, we picked out the equities with upside potential higher than 50% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on their respective price targets according to analysts. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An engineer inspecting a newly renovated electrical Systems USA, Inc. (NYSE:FIX), headquartered in Texas, is a prominent provider of mechanical and electrical contracting services, primarily serving the new commercial construction sector. In addition to new builds, the company generates significant revenue from the maintenance and upgrade of existing systems, forming a balanced and diversified service model. A central pillar of its growth strategy has been acquisitions, with Comfort Systems allocating an average of $82.5 million annually to business purchases between 2007 and 2023, allowing it to expand its capabilities and market reach. In the fourth quarter of 2024, Comfort Systems USA, Inc. (NYSE:FIX) posted strong financial results, reflecting the success of its strategic initiatives. The company reported revenue of $1.87 billion, representing a 37.5% year-over-year increase. Net income surged to $145.9 million from $91.6 million in the same period of the previous year. The firm ended the year in a robust financial position, with $550 million in cash and cash equivalents—more than double the $205 million it held in 2023. Operating cash flow totaled $210.5 million, while free cash flow reached $171.7 million, underscoring the company's efficiency in turning revenue into strong liquidity. In February, the company rewarded shareholders by increasing its quarterly dividend by 14.3%, bringing the payout to $0.40 per share. Looking ahead, Comfort Systems USA, Inc. (NYSE:FIX) anticipates same-store revenue growth of 7–9% in 2025. This projection is supported by rising demand from the data center and industrial sectors, as well as broader macroeconomic trends like the reshoring of manufacturing to the United States. Despite noting that margins in 2024 were unusually high, management remains confident in sustaining strong profitability. With a proven track record of acquisitions, strong financial performance, and a strategic focus on expanding sectors, Comfort Systems USA, Inc. (NYSE:FIX) is well-positioned for continued growth. Its consistent execution and adaptability in evolving markets make it a compelling addition to any long-term investment portfolio. Overall, FIX ranks 8th on our list of Louis Navellier's stock picks with huge upside potential. While we acknowledge the potential of FIX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FIX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Comfort Systems USA, Inc. (FIX): The High Growth Forever Dividend Stock to Invest In
We recently published a list of the . In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other high growth forever dividend stocks. Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don't diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market's monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices. Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump's expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session's gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%. This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market's down months and roughly 44% of its up months. They've also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market. Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years. The report emphasized that the most promising opportunities in the dividend space lie with so-called 'Compounders'—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends. An engineer inspecting a newly renovated electrical installation. For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. The stocks are ranked in ascending order of their revenue growth rates. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). 5-Year Revenue Growth: 21.86% Comfort Systems USA, Inc. (NYSE:FIX) is a Texas-based company that offers mechanical and electrical contracting services. The bulk of the company's revenue is generated through new commercial construction projects. However, maintaining existing systems and upgrading older ones also play an important role in its operations. Given the historically fragmented nature of the industry, the company has made acquisitions a core part of its strategy. Between 2007 and 2023, it allocated an average of $82.5 million per year toward acquiring other businesses—accounting for roughly three-quarters of its overall capital deployment during that period. In the fourth quarter of 2024, Comfort Systems USA, Inc. (NYSE:FIX) reported revenue of $1.87 billion, which showed a 37.5% growth from the same period last year. The company's net income came in at $145.9 million, up from $91.6 million in the prior-year period. Its cash position also came in strong, as it ended the year with $550 million available in cash and cash equivalents, compared with $205 million in 2023. Comfort Systems USA, Inc. (NYSE:FIX) generated $210.5 million in operating cash flow, and its free cash flow came in at $171.7 million. In February, the company declared a 14.3% hike in its quarterly dividend to $0.40 per share. Through this increase, the company achieved its 13th consecutive year of dividend growth. The stock supports a dividend yield of 0.46%, as of April 13. Overall, FIX ranks 1st on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of FIX as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than FIX but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
