Trade-Ideas LLC identified

Comfort Systems USA

(

FIX

) as a strong on high relative volume 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 $8.0 million.
  • FIX has traded 55,627 shares today.
  • FIX is trading at 5.57 times the normal volume for the stock at this time of day.
  • FIX is trading at a new high 7.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 1%. FIX has a PE ratio of 22. Currently there are no analysts that rate Comfort Systems USA a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Comfort Systems USA has been 371,800 shares per day over the past 30 days. Comfort Systems USA has a market cap of $1.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.21 and a short float of 3.4% with 4.54 days to cover. Shares are down 4.8% year-to-date as of the close of trading on Tuesday.

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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, notable return on equity, compelling growth in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 10.9%. 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 0.03 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 1.30, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Construction & Engineering industry and the overall market, COMFORT SYSTEMS USA INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 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 132.4% when compared to the same quarter one year prior, rising from $7.61 million to $17.67 million.
  • Net operating cash flow has remained constant at $23.92 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -23.58%.

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