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Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.
When it comes to top line strength, three companies – Comfort Systems USA, Arista Networks and EMCOR Group – have all posted sizable sales growth rates over recent years.
In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.
FIX Keeps Data Centers Cool
Comfort Systems USA, a current Zacks Rank #1 (Strong Buy), offers comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services.
The company provides chillers, cooling towers, and other critical components in data centers, making it a somewhat under-the-radar play on the AI frenzy. Analysts have been notably bullish concerning its current fiscal year, with the $13.79 Zacks Consensus EPS estimate up 50% over the last year and suggesting 60% Y/Y growth.
Top line revisions have moved similarly, also brightening its outlook in a big way. FIX’s sales growth has been remarkable over recent quarters, posting double-digit percentage year-over-year growth rates in 12 consecutive periods.
Sales have exploded in recent quarters.
And the CEO maintains a rosy outlook, delivering this statement following its Q2 results, ‘Same-store backlog is 25% above last year, demand continues at unprecedented levels and our job pipelines are robust. Considering these factors, we remain optimistic that our strong results will continue in the second half of 2024 and into 2025.’
ANET Shares Reflect AI Play
Arista Networks, a current Zacks Rank #2 (Buy), is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Analysts have taken their earnings expectations higher across the board.
Shares have been red-hot over the last year thanks to robust quarterly results stemming from unrelenting demand, gaining nearly 100% compared to the S&P 500’s 28% gain. The company again posted strong results in its latest release, enjoying margin expansion alongside a 30% pop in EPS.
The company’s margins have been moving in the right direction over recent periods.
And the strong sales growth is slated to continue for some time thanks to red-hot demand, with the $6.8 billion expected in its current fiscal year up 8% over the last year and suggesting 17% growth. Peeking a bit ahead, the company is expected to see another 20% sales increase in FY25.
EMCOR Reports Record Results
EMCOR, a Zacks Rank #1 (Strong Buy), is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services for a diverse range of businesses.
Sales expectations melted higher after a recent guidance upgrade that followed its latest record-breaking quarterly release. The company posted both record sales and diluted EPS.
Shares could interest those with an appetite for income, currently yielding a modest 0.3% annually. While the yield is nothing to write home about, the company’s 25% five-year annualized dividend growth rate overall reflects a shareholder-friendly nature.
Steady demand has kept the company’s top line healthy, seeing consistent growth over recent years.
Bottom Line
Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.
And when it comes to strong sales trends, all three companies above precisely fit the criteria.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Comfort Systems, Arista Networks and EMCOR
For Immediate Release
Chicago, IL – September 19, 2024 – Today, Zacks Investment Ideas feature highlights Comfort Systems USA (FIX - Free Report) , Arista Networks (ANET - Free Report) and EMCOR Group (EME - Free Report) .
3 Companies Enjoying Stellar Earnings Growth: EME, FIX, ANET
Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.
When it comes to top line strength, three companies – Comfort Systems USA, Arista Networks and EMCOR Group – have all posted sizable sales growth rates over recent years.
In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.
FIX Keeps Data Centers Cool
Comfort Systems USA, a current Zacks Rank #1 (Strong Buy), offers comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services.
The company provides chillers, cooling towers, and other critical components in data centers, making it a somewhat under-the-radar play on the AI frenzy. Analysts have been notably bullish concerning its current fiscal year, with the $13.79 Zacks Consensus EPS estimate up 50% over the last year and suggesting 60% Y/Y growth.
Top line revisions have moved similarly, also brightening its outlook in a big way. FIX’s sales growth has been remarkable over recent quarters, posting double-digit percentage year-over-year growth rates in 12 consecutive periods.
Sales have exploded in recent quarters.
And the CEO maintains a rosy outlook, delivering this statement following its Q2 results, ‘Same-store backlog is 25% above last year, demand continues at unprecedented levels and our job pipelines are robust. Considering these factors, we remain optimistic that our strong results will continue in the second half of 2024 and into 2025.’
ANET Shares Reflect AI Play
Arista Networks, a current Zacks Rank #2 (Buy), is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. Analysts have taken their earnings expectations higher across the board.
Shares have been red-hot over the last year thanks to robust quarterly results stemming from unrelenting demand, gaining nearly 100% compared to the S&P 500’s 28% gain. The company again posted strong results in its latest release, enjoying margin expansion alongside a 30% pop in EPS.
The company’s margins have been moving in the right direction over recent periods.
And the strong sales growth is slated to continue for some time thanks to red-hot demand, with the $6.8 billion expected in its current fiscal year up 8% over the last year and suggesting 17% growth. Peeking a bit ahead, the company is expected to see another 20% sales increase in FY25.
EMCOR Reports Record Results
EMCOR, a Zacks Rank #1 (Strong Buy), is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services for a diverse range of businesses.
Sales expectations melted higher after a recent guidance upgrade that followed its latest record-breaking quarterly release. The company posted both record sales and diluted EPS.
Shares could interest those with an appetite for income, currently yielding a modest 0.3% annually. While the yield is nothing to write home about, the company’s 25% five-year annualized dividend growth rate overall reflects a shareholder-friendly nature.
Steady demand has kept the company’s top line healthy, seeing consistent growth over recent years.
Bottom Line
Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.
And when it comes to strong sales trends, all three companies above precisely fit the criteria.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.