UBS Sees Strong Backlog Supporting Comfort Systems USA's (FIX) Long-Term Outlook

Comfort Systems USA, Inc. (NYSE:FIX) is included among the 12 Best HVAC Stocks to Buy Now.

On February 2, UBS raised its price recommendation on Comfort Systems USA, Inc. (NYSE:FIX) to $1,310 from $1,140. The firm also reiterated its Buy rating on the stock. The firm expects a strong fourth-quarter performance, supported by management’s confident tone and an anticipated backlog in the $10.5B–$10.7B range. While UBS does not expect a formal increase to guidance, it noted the stock could face near-term pressure if backlog comes in below expectations. Even so, the firm remains constructive in the long term, citing structural labor shortages and potential upside to earnings estimates.

Comfort Systems USA has long been active in the data center market and has grown into one of the industry’s leading HVAC providers. Demand remains robust, with backlog reaching $9.38 billion, up roughly 65% year over year, underscoring the scale of ongoing project activity.

The company has also been expanding through acquisitions as investment tied to AI infrastructure accelerates. Recent purchases of electrical contractors in Western Michigan and Southern Florida are expected to add about $200 million in annual revenue. Management believes these acquisitions will strengthen its market position and pricing power as AI-related construction continues to ramp.

That growth has begun to flow through to shareholder returns. While the stock currently yields around 0.24%, Comfort Systems USA increased its dividend by 20% last year. Such an increase reflects a strong balance sheet and solid financial momentum, and similar dividend growth could become more common if current trends persist.

Comfort Systems USA, Inc. (NYSE:FIX) provides commercial, industrial, and institutional HVAC and electrical contracting services, supporting a wide range of complex facilities across the US.

While we acknowledge the potential of 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.

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