Is Comfort Systems USA (FIX) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Comfort Systems USA (FIX). FIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.88, which compares to its industry's average of 20.60. FIX's Forward P/E has been as high as 25.19 and as low as 14.51, with a median of 19.50, all within the past year.
Another notable valuation metric for FIX is its P/B ratio of 3.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.46. FIX's P/B has been as high as 4.80 and as low as 3.33, with a median of 3.87, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FIX has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.56.
Finally, investors should note that FIX has a P/CF ratio of 10.90. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FIX's current P/CF looks attractive when compared to its industry's average P/CF of 29.76. Over the past 52 weeks, FIX's P/CF has been as high as 17.53 and as low as 10.62, with a median of 13.58.
These are only a few of the key metrics included in Comfort Systems USA's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FIX looks like an impressive value stock at the moment.
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