At US$490, Is Comfort Systems USA, Inc. (NYSE:FIX) Worth Looking At Closely?

Let's talk about the popular Comfort Systems USA, Inc. (NYSE:FIX). The company's shares saw a significant share price rise of 62% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Comfort Systems USA’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Comfort Systems USA

What's The Opportunity In Comfort Systems USA?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 16.25% above our intrinsic value, which means if you buy Comfort Systems USA today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $421.49, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Comfort Systems USA’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Comfort Systems USA look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Comfort Systems USA's earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in FIX’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on FIX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Comfort Systems USA as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Comfort Systems USA you should know about.

If you are no longer interested in Comfort Systems USA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.