Why Comfort Systems USA Stock Slid 17% Last Month
Shares of Comfort Systems USA (NYSE: FIX) slid 16.8% in February, according to data provided by S&P Global Market Intelligence. Part of this drop occurred after the company reported financial results for the fourth quarter of 2024 on Feb. 20, but the bigger drop happened earlier in the month and could be related to President Donald Trump's trade tariffs.The trade tariff situation is constantly changing, so my thoughts could quickly become outdated. But suffice it to say that Comfort Systems' costs could go up because of import tariffs -- the company specifically calls this out in the risk section of its financial filings. And if it can't raise prices by the same amount, its profit margins would go down, which is bad for the business and, consequently, for the stock.Before reporting Q4 results, Comfort Systems' stock was down about 10% during the month, and I'd wager that investors were thinking about its profit margins due to tariffs. It seems the Q4 report didn't do anything to alleviate concerns. The numbers beat expectations, but the stock still fell.Continue reading
Shares of Comfort Systems USA (NYSE: FIX) slid 16.8% in February, according to data provided by S&P Global Market Intelligence. Part of this drop occurred after the company reported financial results for the fourth quarter of 2024 on Feb. 20, but the bigger drop happened earlier in the month and could be related to President Donald Trump's trade tariffs.
The trade tariff situation is constantly changing, so my thoughts could quickly become outdated. But suffice it to say that Comfort Systems' costs could go up because of import tariffs -- the company specifically calls this out in the risk section of its financial filings. And if it can't raise prices by the same amount, its profit margins would go down, which is bad for the business and, consequently, for the stock.
Before reporting Q4 results, Comfort Systems' stock was down about 10% during the month, and I'd wager that investors were thinking about its profit margins due to tariffs. It seems the Q4 report didn't do anything to alleviate concerns. The numbers beat expectations, but the stock still fell.
