What Happened?
A number of stocks jumped in the afternoon session after the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Renewable Energy company Shoals (NASDAQ: SHLS) jumped 6%. Is now the time to buy Shoals? Access our full analysis report here, it’s free.
- Renewable Energy company Generac (NYSE: GNRC) jumped 5.9%. Is now the time to buy Generac? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Comfort Systems (NYSE: FIX) jumped 6.9%. Is now the time to buy Comfort Systems? Access our full analysis report here, it’s free.
- Energy Products and Services company Quanta (NYSE: PWR) jumped 6.1%. Is now the time to buy Quanta? Access our full analysis report here, it’s free.
- Engineering and Design Services company Dycom (NYSE: DY) jumped 5.6%. Is now the time to buy Dycom? Access our full analysis report here, it’s free.
Zooming In On Comfort Systems (FIX)
Comfort Systems’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 21.7% on the news that the company reported stellar second-quarter 2025 financial results that significantly surpassed analyst expectations for both revenue and profit. The mechanical and electrical contracting firm announced revenue of $2.17 billion, a 20% increase from the same quarter last year and well ahead of the consensus estimate of $1.95 billion. Profitability was even more impressive, with earnings per share (EPS) soaring 75% year-over-year to $6.53, crushing Wall Street's forecast of $4.68. Adding to the positive results, Comfort Systems reported a record backlog of $8.12 billion. Backlog represents contracted future work, and this substantial increase from the prior year's $5.77 billion signaled robust demand and strong future revenue visibility to investors.
Comfort Systems is up 22.8% since the beginning of the year, and at $1,232 per share, has set a new 52-week high. Investors who bought $1,000 worth of Comfort Systems’s shares 5 years ago would now be looking at an investment worth $19,024.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.
