News Flash: Analysts Just Made A Captivating Upgrade To Their Comfort Systems USA, Inc. (NYSE:FIX) Forecasts
Celebrations may be in order for Comfort Systems USA, Inc. (NYSE:FIX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Comfort Systems USA too, with the stock up 15% to US$285 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from Comfort Systems USA's four analysts is for revenues of US$6.6b in 2024 which - if met - would reflect a sizeable 26% increase on its sales over the past 12 months. Per-share earnings are expected to ascend 18% to US$10.69. Prior to this update, the analysts had been forecasting revenues of US$5.9b and earnings per share (EPS) of US$9.62 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for Comfort Systems USA
It will come as no surprise to learn that the analysts have increased their price target for Comfort Systems USA 18% to US$259 on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Comfort Systems USA's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Comfort Systems USA to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Comfort Systems USA could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Comfort Systems USA analysts - going out to 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
