Comfort Systems USA (FIX) In A Perilous Reversal

Trade-Ideas LLC identified Comfort Systems USA (FIX) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Comfort Systems USA

(

FIX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Comfort Systems USA as such a stock due to the following factors:

  • FIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
  • FIX has traded 236,029 shares today.
  • FIX is down 3.3% today.
  • FIX was up 7.1% yesterday.

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More details on FIX:

Comfort Systems USA, Inc. provides installation, maintenance, repair, and replacement services for heating, ventilation, and air conditioning (HVAC) systems in the mechanical services industry. The stock currently has a dividend yield of 0.9%. FIX has a PE ratio of 24. Currently there is 1 analyst that rates Comfort Systems USA a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Comfort Systems USA has been 426,400 shares per day over the past 30 days. Comfort Systems USA has a market cap of $1.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.02 and a short float of 3.7% with 3.10 days to cover. Shares are up 86.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Comfort Systems USA as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FIX's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 204.6% when compared to the same quarter one year prior, rising from $4.40 million to $13.40 million.
  • Powered by its strong earnings growth of 191.66% and other important driving factors, this stock has surged by 91.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • COMFORT SYSTEMS USA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMFORT SYSTEMS USA INC reported lower earnings of $0.62 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $0.62).

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