Comfort Systems USA, Monday's pick for IBD 50 Growth Stocks To Watch, is approaching a new buy point. That makes FIX stock one of the best stocks to buy and watch in today's market.
Houston, Texas-based Comfort Systems makes heating and air-conditioning products. On Oct. 26, the company reported strong earnings and sales that topped Wall Street's estimates. The HVAC leader earned $2.74 a share on revenue of $1.37 billion, year-over-year increases of 64% and 23%, respectively.
The company also upped its quarterly dividend by 2.5 cents, to 25 cents a share. The annualized dividend yield is 0.5%.
Further, analysts project 59% earnings growth this year, followed by a 14% bump in 2024.
Coupled with strong and steady long-term earnings growth, Comfort Systems boasts an Earnings Per Share Rating of 98, out of a best-possible 99, according to IBD Stock Checkup. This rating takes into account earnings growth and profit stability over the past three years. The two most recent quarters are weighted more heavily.
FIX stock also has a best-possible 99 IBD Composite Rating after a tremendous stock price move since June 2022. That fundamental and technical strength makes Comfort Systems one of the best stocks to buy and watch.
Learn How To Time The Market With IBD's ETF Market Strategy
FIX Stock Nears Buy Point
Comfort Systems stock is rapidly approaching a cup-with-handle buy point at 191.27, per IBD MarketSmith pattern recognition. On Oct. 27, FIX stock shot up more than 14% after the company's strong earnings results. Shares regained their 50-day line in bullish fashion, and are just 2% away from their latest buy point.
FIX stock rallied nearly 1% midday Monday.
Bullishly, the relative strength line hit a new high in early November, confirming the strength of the stock's recent advance. A strong RS line during the early stages of a new uptrend is a big positive.
With the stock market outlook back in a confirmed uptrend, investors should be their raising market exposure through buying during strong breakouts. IBD recommends an exposure level of 60% to 80%, according to the Big Picture column.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| First Citizens | 1,450.56 | Cup with handle | |
| Lululemon Athletica | 406.94 | Flat base | |
| ServiceNow | 607.90 | Double bottom |
Source: IBD Data As Of Nov. 13, 2023
Follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
