Comfort Systems (FIX) is an Incredible Growth Stock: 3 Reasons Why

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Comfort Systems (FIX) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Comfort Systems is one of 88 companies in the Construction group. The Construction group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FIX's full-year earnings has moved 0.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, FIX has moved about 117% on a year-to-date basis. At the same time, Construction stocks have gained an average of 25.7%. This means that Comfort Systems is performing better than its sector in terms of year-to-date returns.

Sterling Infrastructure (STRL) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 112.3%.

In Sterling Infrastructure's case, the consensus EPS estimate for the current year increased 5.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Comfort Systems is a member of the Building Products - Air Conditioner and Heating industry, which includes 5 individual companies and currently sits at #32 in the Zacks Industry Rank. Stocks in this group have gained about 56.1% so far this year, so FIX is performing better this group in terms of year-to-date returns.

On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 18-stock industry is currently ranked #154. The industry has moved +16% year to date.

Comfort Systems and Sterling Infrastructure could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

Zacks Investment Research

Installed Building Products, Inc. IBP, a top U.S. installer of insulation and complementary building products, announced its acquisition of Tatum Insulation III, LLC, an installer based outside Wilmington, NC. With Tatum’s strong presence across new residential and commercial markets in the state, IBP gains increased geographic reach and additional revenue streams. Tatum’s offerings span fiberglass insulation, shower doors, shelving, mirrors, and other interior building products, which will strengthen IBP's service portfolio across North Carolina.

Installed Building Products’ Revenue Growth and Market Expansion

The acquisition of Tatum adds more than $17 million in annual revenues for IBP, a significant boost that aligns with its growth-focused acquisition strategy. According to Jeff Edwards, chairman and CEO of IBP, this deal marks a crucial step forward in diversifying the company’s customer base to serve single-family, multi-family, and commercial construction needs more effectively. Edwards emphasized that with more than $90 million in revenues gained from acquisitions so far in 2024, IBP’s approach remains robust, with a healthy pipeline for future deals across various regions and markets.

IBP’s Strategic Focus on Acquisitions

For IBP, acquisitions are a primary driver of growth, allowing the company to expand into new markets and broaden its service offerings. By integrating Tatum’s operations and resources, IBP is set to strengthen its competitive positioning in the Southeastern U.S. market. This acquisition not only boosts its revenues but also enhances its ability to meet rising demand across North Carolina’s residential and commercial construction sectors.

With this strategic addition, IBP continues its momentum, positioning itself as a leader in the building products installation industry while enhancing value for its shareholders.

During the third quarter, IBP completed acquisitions, including an Illinois-based installer and a specialty distributor, with combined annual revenues exceeding $42 million. These acquisitions contributed to IBP's 8% revenue growth, marking a record third-quarter performance.

Acquisitions are core to IBP's capital allocation strategy, enabling geographic expansion and product diversification across its national network. IBP anticipates further deals before year-end and has a strong acquisition pipeline for 2025. Management remains optimistic about demand driven by residential construction, further supported by U.S. government incentives for energy-efficient building standards.

Share Price Performance of IBP Stock

For Immediate Release

Chicago, IL – November 8, 2024 – Today, Zacks Investment Ideas feature highlights AbbVie ABBV, Visa V and Comfort Systems USA FIX.

Dividend Watch 3 Companies Boosting Quarterly Payouts

Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.

And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.

In addition, consistent dividend hikes reflect the company's successful nature, opting to share profits with shareholders.

And recently, three companies – AbbVie, Visa and Comfort Systems USA– have announced payout increases. Let's take a closer look at each.

FIX Shares Reflect AI Play

Comfort Systems USA, a current Zacks Rank #2 (Buy), offers comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services.

The company provides chillers, cooling towers, and other critical components in data centers, making it a somewhat under-the-radar play on the AI obsession. The revisions trend for its current fiscal year is notably bullish, with the $13.88 Zacks Consensus EPS estimate up 45% over the last year and suggesting nearly 60% Y/Y growth.

The company announced a sizable 17% boost to its quarterly payout following its latest set of quarterly results, continuing its shareholder-friendly nature. FIX has consistently increasingly rewarded shareholders, further underpinned by a 28% five-year annualized dividend growth rate.

The share reaction to the latest print was initially negative, with shares now shaking off any negativity and trading near all-time highs. Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions are present.

Visa Generates Substantial Cash

Visa, a current Zacks Rank #2 (Buy), is a titan in the payments service industry, providing a wide range of financial-related services to its customers. Positive revisions followed its latest set of quarterly results, with the $11.18 Zacks Consensus EPS estimate for its current fiscal year suggesting 11% growth year-over-year.

The above-mentioned set of results was overall positive, with Visa seeing 8% growth in Payments Volume year-over-year alongside a 10% boost in Processed Transactions. In other words, the company's core business continues to grow, enjoying consistent momentum over the last year overall.

Visa's board of directors approved a solid 13% boost to its quarterly payout, bringing the quarterly total to $0.59/share. The company has long been a favorite among income-focused investors thanks to its strong cash-generating abilities, with the company reporting $6.4 billion of free cash flow throughout its latest period.

Shares yield 0.7% annually.

AbbVie Lifts Outlook

AbbVie's recent set of results pleased investors, with shares enjoying a bullish move following the print. Concerning headline figures, the company exceeded both consensus EPS and sales expectations, with EPS growing 1.7% alongside a 3.8% sales increase.

Up 34% in 2024, shares have been red-hot, outperforming the S&P 500 handily on the back of strong quarterly releases.

Several key offerings helped drive the results, with Skyrizi revenue of $3.2 billion soaring 51% higher year-over-year. Rinvoq was also another huge contributor, with sales of $1.6 billion melting 45% higher from the same period last year.

The results led the company to up its full-year guidance yet again, now expecting adjusted EPS in a band of $10.90 - $10.94 per share ($10.67 - $10.87 per share previously). To top it off, the company also announced a 5.8% boost to its quarterly payout, continuing its shareholder-friendly nature.

Bottom Line

Everybody loves dividends, essentially investors' form of payday. They can help limit drawdowns in other positions and provide a passive income stream, two key traits that all market participants enjoy.

And for those seeking companies that have recently boosted payouts, all three above fit the criteria.

All three recently upped their quarterly payouts, continuing their shareholder-friendly nature.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Zacks Investment Research