Is Comfort Systems USA (FIX) Stock Outpacing Its Construction Peers This Year?

Zacks
29 Oct 2024

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Comfort Systems (FIX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Comfort Systems is a member of our Construction group, which includes 88 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Comfort Systems is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FIX's full-year earnings has moved 0.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, FIX has moved about 89.3% on a year-to-date basis. At the same time, Construction stocks have gained an average of 21.9%. This means that Comfort Systems is performing better than its sector in terms of year-to-date returns.

Another Construction stock, which has outperformed the sector so far this year, is Lennox International (LII). The stock has returned 36.9% year-to-date.

For Lennox International, the consensus EPS estimate for the current year has increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 5 individual companies and currently sits at #102 in the Zacks Industry Rank. Stocks in this group have gained about 33.8% so far this year, so FIX is performing better this group in terms of year-to-date returns. Lennox International is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to Comfort Systems and Lennox International as they could maintain their solid performance.

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