Do You Believe in Comfort Systems USA's (FIX) Ability to Outgrow the Market?

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the second quarter of 2025, which increased 18%. High tariff levels announced on Liberation Day triggered a sudden spike in the Volatility Index (VIX). However, fear quickly gave way to strong gains as tariffs were partially rolled back, and corporate first-quarter earnings showed resilience. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks such as Comfort Systems USA, Inc. (NYSE:FIX). Comfort Systems USA, Inc. (NYSE:FIX) offers mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services. The one-month return of Comfort Systems USA, Inc. (NYSE:FIX) was -0.38%, and its shares gained 125.66% of their value over the last 52 weeks. On September 08, 2025, Comfort Systems USA, Inc. (NYSE:FIX) stock closed at $715.87 per share, with a market capitalization of $25.257 billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding Comfort Systems USA, Inc. (NYSE:FIX) in its second quarter 2025 investor letter:

"Comfort Systems USA, Inc. (NYSE:FIX) is one of the largest non-union MEP (mechanical, electrical, plumbing) contracting firms in the U.S. The company has benefited from a persistent shortage of skilled MEP labor, enabling well-established players like Comfort to be selective with projects and command higher margins. Ongoing data center capex, onshoring-driven construction demand, and structural constraints on expanding the skilled trades workforce all support Comfort's ability to continue outgrowing the market while maintaining attractive margins over our investment horizon."

Comfort Systems USA, Inc. (NYSE:FIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Comfort Systems USA, Inc. (NYSE:FIX) at the end of the second quarter, which was 48 in the previous quarter. In the second quarter of 2025, Comfort Systems USA, Inc. (NYSE:FIX) reported a revenue of $2.2 billion, which signifies an increase of $363 million or 20% compared to the previous year. While we acknowledge the potential of Comfort Systems USA, Inc. (NYSE:FIX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Comfort Systems USA, Inc. (NYSE:FIX) and shared the list of top industrial stocks to buy amid easing tariff uncertainties. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.