Nvidia has become so popular as a stock that it has gone from a hot pick to the world’s largest company by market capitalization.
So, it’s somewhat of a surprise that another stock, which many investors may not be familiar with yet, has easily outperformed the semiconductor maker over the past five years
And it’s not even close. Comfort Systems USA (NYSE: FIX) has returned more than 2,000% over the past five years, while Nvidia’s return is just under 1,000%. Here’s how this HVAC company did it.
Why Comfort Systems outperformed Nvidia Five years ago, Comfort Systems was a relatively overlooked mid-cap mechanical, electrical, and plumbing (MEP) contractor with a market capitalization under $3 billion. Nvidia was already a tech titan valued at more than $500 billion. Because Comfort Systems started from a much smaller baseline, capital inflows and earnings expansion had an exponentially larger multiplier effect on its stock price.