With the dog days of summer in the rear view mirror and fall season here, consumers and businesses will soon switch from cooling to heating systems. Air conditioning and heating systems company Comfort Systems USA is No. 1 in that field. Comfort Systems stock is trading about 10% under a 109.10 entry just ahead of its earnings report. The entry is based on a second-stage flat base, a bullish indicator because early stage bases are more likely to succeed.
Analysts expect EPS growth of 7% for the quarter, and 21% growth for the full year. Comfort Systems hasn't announced a third quarter earnings release date yet, but analysts expect the company to report on or around Oct. 27. Comfort Systems stock was up 2.3% Thursday afternoon to around 103.
Comfort Systems is an umbrella company operating under 35 brands nationwide including Quality Air, Ivey Mechanical, Colonial Webb and various state units with its namesake brand, among others. It primarily serves nonresidential businesses.
Comfort Systems Stock's Key Ratings Shine
Among its ratings, Comfort Systems stock has a near-best 98 Composite Rating of a possible 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Additionally, it boasts a 95 EPS Rating, putting the Houston-based company in the top 5% for recent quarters and years profit growth. It has a B Accumulation/Distribution Rating on an A+ to E scale. The B rating points to fairly strong buying of its shares by big investors such as mutual funds and insurance company funds.
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Regarding fundamentals, Comfort Systems USA has posted two quarters of accelerating earnings growth. Revenue gains have also risen over the same time frame. Last quarter it reported a 30% year-over-year increase in EPS to $1.17 on a 43% jump in revenue to $1.02 billion.
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Tops In Its Industry Group
Comfort Systems stock holds the No. 1 rank among its peers in the Building-A/C & Heating Products industry group. Watsco and AAON are also among the group's highest-rated stocks.
It's important to note that buying a stock just ahead of earnings can be risky since investors typically don't have enough time to build a profit cushion before the latest quarterly numbers come out. Following sound buy and sell rules can minimize the risk.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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