We recently published a list of Louis Navellier’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other Louis Navellier’s stock picks with huge upside potential.
Navellier & Associates is an independent money management firm founded in 1987 by renowned stock analyst Louis Navellier. Headquartered in Reno, Nevada, the firm has spent over three decades delivering disciplined, style-consistent investment strategies to both individual and institutional clients. Its core mission is to maximize returns while effectively managing excessive risk, offering customized portfolios built on a proprietary mix of quantitative and fundamental analysis. Distinct from firms that mimic market indexes, Navellier & Associates aims to outperform them, constructing portfolios that exhibit low correlation to standard benchmarks, greater diversification, and reduced overall volatility.
Navellier’s investment philosophy is based on a rigorous three-step, bottom-up stock selection methodology designed to identify inefficiencies and high-growth opportunities in the market. The first step in this process uses a proprietary quantitative screening system that evaluates market data and individual stock statistics, measuring risk through standard deviation and reward through alpha. This narrows the investment universe to stocks ranking in the top percentiles for favorable risk/reward characteristics. The second step employs fundamental analysis to target companies with strong earnings growth, healthy profit margins, and reasonable forward-looking price-to-earnings ratios. The third and final step involves a proprietary optimization model that strategically allocates portfolio holdings to maximize alpha and minimize volatility. This structured approach results in portfolios that are diversified across sectors and industries and are particularly suited for long-term investors aiming to achieve steady growth in varying market conditions.
Louis Navellier, the firm’s Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer, continues to oversee the portfolios he helped originate. A highly respected voice in the financial community, Navellier has published quantitative growth stock research since 1980. His insights have been widely disseminated across CNBC, Fox Business News, Bloomberg, and MarketWatch, and he has been profiled in leading financial publications such as Forbes, Fortune, Barron’s, and The Wall Street Journal. His methodologies and career have also been spotlighted in books like Secrets of the Investment All-Stars and Investing Under Fire.
Navellier & Associates manages more than $1 billion in private and institutional assets and is a trusted resource for high-net-worth individuals and organizations. The firm offers personalized portfolio reviews that include detailed analysis, risk assessments, and tailored investment recommendations. Portfolio sizes range from $100,000 to over $100 million, and all investment decisions are uniquely customized to align with each client’s financial goals, preferences, and risk tolerance. This commitment to individualized service underscores the firm’s belief that every investor deserves a strategy tailored to their unique financial journey.
As of its latest 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings represent 29.42% of the total portfolio, highlighting a focused yet strategically diversified investment approach rooted in decades of systematic analysis and seasoned market expertise.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify Louis Navellier’s stock picks with the highest upside potential. From the resultant data, we picked out the equities with upside potential higher than 50% based on analyst ratings and discussed why they stood out as sound potential investments. Finally, we ranked the stocks based on their respective price targets according to analysts. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An engineer inspecting a newly renovated electrical installation.
Comfort Systems USA, Inc. (NYSE:FIX)
Number of Hedge Fund Holders as of Q4: 50
Navellier & Associates’ Equity Stake: $9.24 Million
Upside Potential as of April 23: 42.2%
Comfort Systems USA, Inc. (NYSE:FIX), headquartered in Texas, is a prominent provider of mechanical and electrical contracting services, primarily serving the new commercial construction sector. In addition to new builds, the company generates significant revenue from the maintenance and upgrade of existing systems, forming a balanced and diversified service model. A central pillar of its growth strategy has been acquisitions, with Comfort Systems allocating an average of $82.5 million annually to business purchases between 2007 and 2023, allowing it to expand its capabilities and market reach.
In the fourth quarter of 2024, Comfort Systems USA, Inc. (NYSE:FIX) posted strong financial results, reflecting the success of its strategic initiatives. The company reported revenue of $1.87 billion, representing a 37.5% year-over-year increase. Net income surged to $145.9 million from $91.6 million in the same period of the previous year. The firm ended the year in a robust financial position, with $550 million in cash and cash equivalents—more than double the $205 million it held in 2023. Operating cash flow totaled $210.5 million, while free cash flow reached $171.7 million, underscoring the company’s efficiency in turning revenue into strong liquidity.
In February, the company rewarded shareholders by increasing its quarterly dividend by 14.3%, bringing the payout to $0.40 per share. Looking ahead, Comfort Systems USA, Inc. (NYSE:FIX) anticipates same-store revenue growth of 7–9% in 2025. This projection is supported by rising demand from the data center and industrial sectors, as well as broader macroeconomic trends like the reshoring of manufacturing to the United States. Despite noting that margins in 2024 were unusually high, management remains confident in sustaining strong profitability.
With a proven track record of acquisitions, strong financial performance, and a strategic focus on expanding sectors, Comfort Systems USA, Inc. (NYSE:FIX) is well-positioned for continued growth. Its consistent execution and adaptability in evolving markets make it a compelling addition to any long-term investment portfolio.
Overall, FIX ranks 8th on our list of Louis Navellier’s stock picks with huge upside potential. While we acknowledge the potential of FIX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FIX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
