During this earnings season, even good results are leading to stock declines for most companies levered to the AI build-out. Therefore, the retirement announcement, combined with a “sell the news” mentality, appears to be the cause of today’s sell-off. <\/p>\n
Comfort Systems continues to thrive <\/p>\n
Comfort Systems has been a massive winner due to the AI data center build-out<\/a>, given its expertise in the cooling, plumbing, ventilation, and electrical systems that AI data centers require. <\/p>\n Third-quarter results continued that trend, with revenue growing a whopping 53.7% and earnings per share growing an even higher 68.6% to $13.91. Both figures beat analyst expectations by a fair amount. <\/p>\n Not only were current results terrific, but the company’s backlog grew to $17.8 billion from $14.1 billion just three months prior. That’s a 26.2% quarter-over-quarter growth rate in the backlog, which would amount to a 153.7% annualized rate. <\/p>\n This makes Comfort Systems’ sell-off all the more confusing today. However, there have been many similar sell-offs<\/a> this week in AI stocks, with blockbuster earnings often met with selling pressure. It appears some investors may be anticipating the end of the AI build-out next year, even as tech executives say the opposite. <\/p>\n Image source: Getty Images. <\/p>\n Comfort Systems is reasonably priced now <\/p>\n Comfort Systems is now about 38% off its all-time high set back in June, while shares trade at 19.4 times the average 2027 analyst earnings estimate. <\/p>\n That’s a very reasonable valuation for Comfort Systems if the AI build-out continues beyond 2027. However, doubts over that prospect, along with the CFO’s retirement announcement, appear to be dominating sentiment today. <\/p>\n Should you buy stock in Comfort Systems USA right now? <\/p>\n Before you buy stock in Comfort Systems USA, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Comfort Systems USA wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $361,596!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,303,935!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 910% \u2014 a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of October 23, 2026. <\/p>\n Billy Duberstein<\/a> and\/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> <\/p>\n