11 Best Engineering Stocks to Invest in Now

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5. Comfort Systems USA Inc. (NYSE:FIX)

Number of Hedge Fund Holders: 50

Comfort Systems USA Inc. (NYSE:FIX) specializes in the engineering, installation, and maintenance of mechanical and electrical systems. It provides MEP solutions for new and existing buildings across the US. Its services encompass HVAC, plumbing, electrical, and fire protection, with a focus on design, engineering, and remote monitoring for commercial, industrial, and institutional clients.

The company’s Mechanical segment experienced substantial growth in 2024, with full-year revenue increasing by 40% year-over-year. This was driven by acquisitions, modular expansion, and significant organic construction and service growth. The segment’s performance contributed to a record-breaking year for the company, with overall revenue reaching $7 billion, which was a 35% increase from 2023.

The Mechanical segment’s backlog is robust and broadly based, with contributions from the industrial sector, which accounted for over 60% of the company’s 2024 volume. This includes the growing technology sector which encompasses data centers and chip fabs that represented 33% of the company’s revenue. Modular construction, which is a key component of the Mechanical segment, accounted for 17% of the total 2024 revenue.

Carillon Chartwell Small Cap Growth Fund stated the following regarding Comfort Systems USA Inc. (NYSE:FIX) in its first quarter 2024 investor letter:

“Another strong performer was Comfort Systems USA, Inc. (NYSE:FIX). The company is a modular construction company, involved in manufacturing plant and data center construction. Given strong demand trends, the company is reporting record growth and backlogs.”

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