Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds

7. Comfort Systems USA, Inc. (NYSE:FIX)

3-Year Average Revenue Growth: 31.74%

Number of Hedge Fund Holders: 50

Comfort Systems USA, Inc. (NYSE:FIX) operates mainly in the U.S., offering mechanical and electrical installation, renovation, maintenance, and replacement services. It conducts through its Mechanical and Electrical divisions, handling heating, ventilation, and air conditioning (HVAC), plumbing, electrical, and fire protection. Its diversified client spans tech, healthcare, and manufacturing industries, with particularly high demand for its data center and modular solutions.

Comfort Systems USA, Inc. (NYSE:FIX) reported strong finances for 2024 as revenue jumped 35% to $7 billion from acquisitions, modular growth, and more construction projects. Where the Mechanical division grew by 40%, the Electrical segment rose by 19%, while early EPS surged 62% to $14.60 from $9.01 in 2023. This demonstrated better margins and boosted cost efficiency. The operational income for the quarter surged by 88% to $226 million, backed by a strong backlog and tight project management.

Comfort Systems USA, Inc. (NYSE:FIX) hit a record $6 billion backlog, an increase of 16% from last year, driven by steady demand from the industrial and tech sectors. Where data centers now make up 33% of revenue, an increase of 21% from the prior year, modular construction grew almost 50%, mainly serving data centers and pharma sectors. In addition, Comfort completed the acquisition of Century Contractors to strengthen its mechanical contracting portfolio.

For the future, Comfort Systems USA, Inc. (NYSE:FIX) predicts 7-9% same-store revenue growth in 2025, driven by continuous development in data centers and industrial markets. Although 2024 saw unusually high margins, the company is confident in keeping the profits up. Additionally, the ongoing trend of bringing manufacturing back to the U.S. creates more opportunities. With solid performance and expansion in growing sectors, Comfort Systems USA, Inc. (NYSE:FIX) makes a top stock for our stock portfolio.