Up 77% This Year Already, Comfort Systems Stock Is Outpacing Nvidia (And It's Not Even Close)

Comfort Systems (NYSE: FIX) is a mechanical and electrical services contractor that handles everything from HVAC systems to plumbing to controls, and fire protection. Its shares are up more than 77% this year and more than 374% over the past year.

There's a good chance the run isn't over yet because the company is riding the trend of data center growth. It has successfully pivoted toward high-growth technology markets, with data center projects now accounting for roughly 45% of its total revenue.

Hyperscalers such as Amazon, Alphabet, and Microsoft are ramping up spending on artificial intelligence (AI) infrastructure, pushing the need for complex cooling and electrical systems that Comfort can provide. Here are four reasons why investing in Comfort Systems stock today would be a smart long-term move.

Image source: Getty Images.

1. It has a huge backlog

As of early 2026, the industrial company's backlog reached a record $11.94 billion, more than double what it had at the end of 2024. It is a pick-and-shovel AI play that benefits from its role in constructing data centers but also the long-running revenue it derives from servicing them.

The company has 22,000 employees across 50 operating companies and 190 locations in 142 cities in the U.S., yet it can't keep up with demand.

2. It is the ultimate momentum play

The stock is trading at more than 42 times earnings. That seems pricey for an industrial stock, but it has outgained Nvidia on five, three and one year periods. In 2025, it reported revenue of $9.1 billion, up 29.5%, and earnings per share (EPS) of $28.88, up 97.8%.

FIX data by YCharts

The company has had positive cash flow for 27 consecutive years, one reason why it has raised its dividend for 14 consecutive years, including a 16.7% boost this year to $0.70 per quarterly share. It has grown its dividend by 35.62% over the past five years.

The company hasn't yet provided specific guidance for 2026, so investors should stay tuned when that projection comes in.

3. Its off-site modular construction is growing

Through strategic acquisitions, the company grew its modular capacity to 4 million square feet by the end of 2026. Building components in a controlled factory setting rather than on-site allows for better quality control, higher margins, and faster project delivery -- a critical advantage, given current labor shortages.

Building modular parts in its own factories, rather than on site, works perfectly with the company's approach of designing and building projects from start to finish. Because it handles engineering and installation, it gains efficiency, higher profits, and greater trust with big clients, particularly those in fast-growing industries such as data centers and high-tech manufacturing.

4. It has little debt, meaning it can easily grow

At the end of 2025, it had $145.2 million in debt compared to $981.9 million in cash. Its annual debt-to-equity level is 0.197, very low for an industrial company. With so little debt, it has massive dry powder. If a smaller competitor struggles, Comfort Systems can easily borrow money at favorable rates to buy them out.

The biggest concern about the stock is its relatively high valuation. However, considering its strong finances and huge backlog, the company still appears to be a bargain. Even if data center demand were to drop off, the company has almost no interest payments dragging it down. Comfort Systems could comfortably survive a downturn much longer than many competitors.

James Halley has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Comfort Systems USA, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.