Comfort Systems USA Stock May Have More Upside

We think Comfort Systems USA (FIX) stock might be a good investment candidate. Why? Because you get strong margin, low-debt capital structure, and strong momentum – with room to run as the stock is meaningfully below its 52-week high.

There Are Several Things In Favor Of FIX Stock

FIX is up 112% so far this year, but can still run more given its good fundamentals and the fact that it is 11% below its 52-week high.

Comfort Systems USA’s Q3 2025 results showcase robust operational execution, driving operating margins to 15.5%, stemming from favorable project developments and a growing mix in technology, particularly data center and modular construction projects. The company maintains a lean capital structure, with a 0.06 debt-to-equity ratio as of November 2025 and $725 million in net cash from Q3 2025. This financial strength, coupled with a record $9.38 billion backlog (Q3 2025) up 65% year-over-year, and recent acquisitions, demonstrates strong momentum. The stock has surged over 112% year-to-date.

And Its Fundamentals Look Good

• Long-Term Profitability: About 11.9% operating cash flow margin and 10.3% operating margin last 3-year average.
• Strong Momentum: Currently in the top 10th percentile of stocks in terms of “trend strength” – our proprietary momentum metric.
• Revenue Growth: Comfort Systems USA saw revenue growth of 27.7% LTM and 29.0% last 3-year average, but this is not a growth story
• Room To Run: Despite its momentum, FIX stock is trading 11% below its 52-week high.

Below is a quick comparison of FIX fundamentals with S&P medians.

*LTM: Last Twelve Months

But Be Wary Of The Risks

While FIX stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. FIX took a hit of about 90% in the Dot-Com crash, dropped 57% during the Global Financial Crisis, and fell 38% in the 2018 correction. The Covid pandemic saw a roughly 41% dip, while the inflation shock trimmed around 26%. Even with strong fundamentals, FIX isn’t immune when the market turns south. Sharp sell-offs have hit hard across various crises, showing risk is always there. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read FIX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell FIX Stock.

FIX Is Just One of Several Such Stocks

You could also check out:

1. Lam Research (LRCX)
2. KLA (KLAC)
3. Newmont (NEM)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. High operating or (cash flow from operations) margins
3. No instance of very large revenue decline in the past 5 years
4. Low-debt capital structure
5. Strong momentum

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 12-month forward returns of nearly 15%
• 12-month win rate (percentage of picks returning positive) of about 60%

Portfolios Beat Stock Picking

Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.