We recently published a list of Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds. In this article, we are going to take a look at where Comfort Systems USA, Inc. (NYSE:FIX) stands against other aggressive stocks picked by hedge funds.
The broader market has dropped into correction territory, declining by over 10% from its peak in February and wiping $5 trillion in market value. Simultaneously, Reuters reported that the Nasdaq Composite is also undergoing a correction, reflecting a wider pullback in high-growth stocks. With unpredictable market trends, aggressive stock portfolios offer both positive and negative effects for growth investors. Investor confidence is highly dependent on trade pressures and inflation, with the Federal Reserve holding rates at 4.25-4.5% and predicting inflation to rise to 2.8%. Concurrently, trade tensions between the U.S. and China are worsening, while in India, the outflow of capital has surged. An estimated $29 billion of foreign investment has been pulled out of stocks in India since October. It is the biggest outflow in six months due to global investment volatility.
History proves that these market corrections, while having repercussions, also create some opportunities. As mentioned in Reuters, since 1929, the broader market has gone through 56 corrections, but only 22 turned into bear markets. These dips typically last 115 days and fall by 13.8%, much less than the 35.6% drops in bear markets. Gold prices went up 13% in 2025, driven by investors looking for stability, and U.S. Treasury yields have fallen as demand for safe assets increases. However, aggressive investors know that market swings can be a good time to buy growth stocks poised for a comeback.
For high-growth investors, it is challenging to maneuver this volatile market. Corrections of 7-10% are occurring more frequently now, yet major indices still find support, which indicates that market disruptions could be investment opportunities. Companies with strong market control, advantages in U.S.-based manufacturing, or innovative business models might be more efficient in these economic conditions. Similarly, sectors evolving through new tech, population shifts, or regulation shifts could offer significant gains for those staying poised in short-term ups and downs.
Sector rotation is becoming crucial in these market shifts, as Reuters reported that the ‘Magnificent Seven’ tech giants are facing challenges. The major EV company has dropped 33%, and the group is down 17% on average since February. This has shifted investors’ interest toward undervalued sectors with strong potential. Historically, aggressive stocks bounce back stronger after corrections as investors regain their risk appetite. Despite current disruptions, companies with solid base values, exposure to disruptive tech, and apt market strategies could see considerable gains as markets settle down.
While uncertain market conditions persist, history shows that downturns often lead to significant recoveries. Investors who plan smartly during these shifts might see gains as money flows between markets and policies evolve.
Our Methodology
To compile our list of the Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds, we began by screening stocks with a minimum of 20% revenue growth over the past three years and strong EPS performance. From this pool, we identified the top 12 stocks with the highest revenue growth and strong hedge fund interest. Finally, we ranked these stocks in ascending order based on hedge fund sentiment as of Q4 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)
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.
Overall, FIX ranks 7th on our list of aggressive stocks picked by hedge funds. While we acknowledge the potential of FIX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
