Comfort Systems USA Stock’s Winning Streak May Not Be Over Yet

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 109% so far this year, but can still run more given its good fundamentals and the fact that it is 14% below its 52-week high.

Comfort Systems USA’s Q3 2025 results highlight these strengths. Operating margins expanded, with gross profit at 24.8%, driven by efficient project execution and a higher-value project mix, including 42% revenue from technology work. A very low 0.06 debt-to-equity ratio is sustained by strong operating cash flow of $553.3 million. Momentum builds from a record $9.38 billion backlog, reflecting robust demand in key sectors like data centers and recent electrical acquisitions. Management projects high-teen revenue growth for Q4 2025, alongside a 130.9% year-to-date stock surge.

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 14% 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. Amphenol (APH)
2. Nextpower (NXT)
3. Coeur Mining (CDE)

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%

Stock Picking Falls Short Against Multi Asset Portfolios

Individual stocks can soar or tank but multi asset exposure steadies the ride. A spread out portfolio captures upside while limiting the damage from any one market.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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