FIX Stock Soars 119% in 6 Months: Is It Still Worth Buying?

Shares of Comfort Systems USA, Inc. FIX have skyrocketed 118.6% in the past six months compared with the Zacks Building Products – Air Conditioner and Heating industry’s growth of 14.1%. During the same period, the stock has also outpaced the broader Construction sector’s growth of 19.7% and the S&P 500’s rally of 17.7%.

Comfort Systems is benefiting from strong demand in technology and industrial markets, supported by record backlog levels and expanding modular capabilities. Alongside consistent growth in service operations and disciplined project selection, recent acquisitions are broadening capabilities and strengthening end-market diversity, including healthcare and institutional projects.

FIX 6-Month Price Performance

In the past six months, the FIX stock has outperformed some other players, including AAON, Inc. AAON, Watsco, Inc. WSO and EMCOR Group, Inc. (EME). In the same time frame, shares of AAON and Watsco have tumbled 5.2% and 20.5%, respectively, while EMCOR has surged 67.2%.

Let us explore the drivers behind this momentum and see why FIX may continue to offer compelling growth opportunities for investors.

Strong Technology & Industrial Demand Fuel Comfort Systems

FIX continues to benefit from rising demand across technology and industrial markets. Large and complex projects, particularly data centers, remain a key source of growth, while industrial customers have contributed significantly to the overall revenue mix.

In the second quarter of 2025, industrial customers accounted for 63% of total revenues, with technology projects representing 40%, up from 31% a year earlier. This shift underscores strong demand for advanced infrastructure and reflects the company’s ability to capture opportunities in high-growth markets. With robust pipelines in both technology and industrial sectors, Comfort Systems is expected to sustain momentum as customers seek specialized expertise for complex projects.

Record-High Backlog Strengthens FIX

The growing backlog is providing Comfort Systems with improved visibility and long-term stability. The company has consistently secured new work in core markets, supported by demand from industrial, institutional and modular construction projects.

As of June 30, 2025, the backlog reached a record $8.12 billion compared with $5.77 billion a year earlier. On a same-store basis, backlog rose to $7.93 billion from $5.77 billion, reflecting strong booking activity and a year-over-year increase of more than $2 billion. This record backlog positions the company well for steady revenue streams, and with customer pipelines remaining robust, FIX is set to carry this strength into 2026 and beyond.

Comfort Systems Service Operations Provide Stability

Service operations remain a reliable growth engine for FIX, helping balance the cyclicality of large construction projects. The segment delivers consistent cash flow and enhances overall profitability.

In the second quarter of 2025, service revenues grew more than 10% year over year and represented 15% of the total revenues. Profitability in this segment remained strong, underscoring the stability and resilience of the business. With service continuing to expand customer relationships and provide recurring revenues, it is expected to remain a steady contributor to growth in the coming years.

FIX Expands Capabilities With Acquisitions

Strategic acquisitions are broadening the reach and capabilities of Comfort Systems. Its recent moves have added scale in mechanical, electrical and plumbing services, while also expanding the company’s presence in regional markets.

In the second quarter of 2025, FIX completed the acquisition of Right Way Plumbing, a Florida-based company expected to contribute $60-$70 million to annual revenues. Alongside this, healthcare and institutional projects remained solid, providing greater end-market diversity. With acquisitions enhancing capabilities and diversification supporting resilience, Comfort Systems is strengthening its base for long-term expansion and growth.

A Look at Comfort Systems Stock’s Valuation

From a valuation standpoint, FIX is currently trading at a premium relative to its industry, with a forward 12-month price-to-earnings (P/E) ratio of 31.02X, as evidenced by the chart below.

Moreover, FIX is priced higher than some of its industry peers, such as EMCOR and Watsco, which trade at 23.8X and 27.56X, respectively. However, AAON is currently trading higher at 42.46X.

FIX’s Stock Estimate Revision Trend

Comfort Systems’ earnings estimates for 2025 and 2026 have trended upward in the past 60 days to $21.82 per share and $23.69, respectively. The estimates for 2025 and 2026 indicate 49.5% and 8.6% year-over-year growth, respectively.

Should Investors Consider Comfort Systems’ Stock Now?

FIX has demonstrated strong momentum, supported by robust demand in technology and industrial markets, record backlog levels, and expanding service and modular operations. Strategic acquisitions are adding capabilities and broadening end-market reach, while steady cash generation provides stability against market cycles. Together, these factors point toward continued operational strength and growth visibility.

With upward estimate revisions and the stock currently carrying a Zacks Rank #1 (Strong Buy), FIX continues to stand out as an attractive pick. Despite trading at a premium to many peers, the company’s execution and growth drivers suggest that investors may still find value in the stock over the long term. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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