Is Comfort Systems (FIX) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Comfort Systems (FIX). FIX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 15.04, which compares to its industry's average of 22.69. FIX's Forward P/E has been as high as 17 and as low as 11.69, with a median of 14.73, all within the past year.
We should also highlight that FIX has a P/B ratio of 3.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.22. Over the past year, FIX's P/B has been as high as 4.14 and as low as 2.53, with a median of 3.51.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FIX has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.59.
Finally, investors will want to recognize that FIX has a P/CF ratio of 11.74. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.40. Within the past 12 months, FIX's P/CF has been as high as 14.53 and as low as 8.72, with a median of 11.67.
These are only a few of the key metrics included in Comfort Systems's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FIX looks like an impressive value stock at the moment.
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