Are Investors Undervaluing Comfort Systems USA (FIX) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Comfort Systems USA (FIX) is a stock many investors are watching right now. FIX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 20.13. This compares to its industry's average Forward P/E of 28.06. Over the past year, FIX's Forward P/E has been as high as 24.44 and as low as 17.14, with a median of 20.72.
Another notable valuation metric for FIX is its P/B ratio of 5.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 10.50. Within the past 52 weeks, FIX's P/B has been as high as 6.07 and as low as 3.66, with a median of 4.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FIX has a P/S ratio of 1.31. This compares to its industry's average P/S of 2.4.
Finally, we should also recognize that FIX has a P/CF ratio of 18.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 43.40. Over the past year, FIX's P/CF has been as high as 20.92 and as low as 11.33, with a median of 15.77.
Value investors will likely look at more than just these metrics, but the above data helps show that Comfort Systems USA is likely undervalued currently. And when considering the strength of its earnings outlook, FIX sticks out at as one of the market's strongest value stocks.
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Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report
