Louis Navellier’s 10 Stock Picks with Huge Upside Potential

8. 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.