What Makes Comfort Systems USA (FIX) an Investment Bet?

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large 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. The one-month return of Comfort Systems USA, Inc. (NYSE:FIX) was 18.33%, and its shares gained 146.48% of their value over the last 52 weeks. On October 27, 2025, Comfort Systems USA, Inc. (NYSE:FIX) stock closed at $976.45 per share, with a market capitalization of $34.441 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Comfort Systems USA, Inc. (NYSE:FIX) in its third quarter 2025 investor letter:

"Comfort Systems USA, Inc. (NYSE:FIX) was another large contributor. The company reported strong operating results, showing an acceleration in organic revenue growth while also highlighting the company’s incremental margin opportunities. Importantly, growth appears sustainable with an expanding business pipeline, driven by the buildout of new data centers that run AI applications. Looking ahead, we believe the company is well-positioned to provide ongoing service and maintenance for the cooling needs of both existing and new data centers."

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 third quarter of 2025, Comfort Systems USA, Inc. (NYSE:FIX) reported a revenue of $2.5 billion, which signifies an increase of $639 million or 35% 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 best non-tech stocks to buy according to Reddit. In addition, please check out our hedge fund investor letters Q3 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.