We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Southwest Gas Stock to Your Portfolio Right Now
Read MoreHide Full Article
Southwest Gas (SWX - Free Report) makes strategic investments to further strengthen its infrastructure and boost operations. The company is also gaining from consistent customer additions. Given its earnings growth opportunities and better debt management, SWX is a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
SWX’ Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 1.1% in the past 60 days to $3.70.
The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $5.25 billion, indicating year-over-year growth of 2.8%.
SWX’ long-term (three to five years) earnings growth rate is 6.61%. The company delivered an average earnings surprise of 0.5% in the past four quarters.
SWX’ Debt Position
Currently, Southwest Gas’ total debt to capital is 57.88%, much better than the sector’s average of 60.62%. A lower ratio suggests the company is less reliant on borrowed money, reducing the risk of defaulting on debt obligations and a stronger financial position.
SWX’ Dividend Yield
Utility optimization and cost management efforts allow the company to reward its shareholders. Upon completion of the separation of Centuri, Southwest Gas plans to target a dividend payout ratio in line with gas utility peers. Currently, the company’s quarterly dividend is 62 cents per share, resulting in an annualized dividend of $2.48 per share. The company’s current dividend yield is 3.31%, better than the Zacks S&P 500 Composite’s 1.3%.
SWX’ Systematic Investments
Southwest Gas strategically plans its investment to meet the growing demand for safe, reliable and affordable energy solutions. The company expects a capital investment of $4.3 billion in 2025-2029. In 2024, it made capital investments of nearly $946 million, up 8.4% from the 2023 level. The capital expenditure for 2025 is expected to be $880 million to support customer growth, system improvements and pipe replacement programs.
SWX’ Customer Growth
The company’s natural gas operations have a diversified and growing customer base in three states, namely Arizona, Nevada and California. Owing to strong economic growth across its service areas, the company installed 41,000 first-time meter sets in the 12 months ended Dec. 31, 2024.
Southwest Gas anticipates 1.4% growth in customers per year through 2029. The ongoing increase in the customer base will drive demand and performance for the company.
SWX’ Stock Price Performance
In the past three months, shares of the company have risen 5.8% against the industry’s 5.9% decline.
UGI’s long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for UGI’s fiscal 2025 sales implies year-over-year growth of 8.4%.
The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates a year-over-year increase of 7.5%. The Zacks Consensus Estimate for NJR’s fiscal 2025 sales implies year-over-year growth of 2.5%.
The Zacks Consensus Estimate for CPK’s 2025 EPS indicates year-over-year growth of 16.3%. The company delivered an average earnings surprise of 2.4% in the last four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Add Southwest Gas Stock to Your Portfolio Right Now
Southwest Gas (SWX - Free Report) makes strategic investments to further strengthen its infrastructure and boost operations. The company is also gaining from consistent customer additions. Given its earnings growth opportunities and better debt management, SWX is a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
SWX’ Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 1.1% in the past 60 days to $3.70.
The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $5.25 billion, indicating year-over-year growth of 2.8%.
SWX’ long-term (three to five years) earnings growth rate is 6.61%. The company delivered an average earnings surprise of 0.5% in the past four quarters.
SWX’ Debt Position
Currently, Southwest Gas’ total debt to capital is 57.88%, much better than the sector’s average of 60.62%. A lower ratio suggests the company is less reliant on borrowed money, reducing the risk of defaulting on debt obligations and a stronger financial position.
SWX’ Dividend Yield
Utility optimization and cost management efforts allow the company to reward its shareholders. Upon completion of the separation of Centuri, Southwest Gas plans to target a dividend payout ratio in line with gas utility peers. Currently, the company’s quarterly dividend is 62 cents per share, resulting in an annualized dividend of $2.48 per share. The company’s current dividend yield is 3.31%, better than the Zacks S&P 500 Composite’s 1.3%.
SWX’ Systematic Investments
Southwest Gas strategically plans its investment to meet the growing demand for safe, reliable and affordable energy solutions. The company expects a capital investment of $4.3 billion in 2025-2029. In 2024, it made capital investments of nearly $946 million, up 8.4% from the 2023 level. The capital expenditure for 2025 is expected to be $880 million to support customer growth, system improvements and pipe replacement programs.
SWX’ Customer Growth
The company’s natural gas operations have a diversified and growing customer base in three states, namely Arizona, Nevada and California. Owing to strong economic growth across its service areas, the company installed 41,000 first-time meter sets in the 12 months ended Dec. 31, 2024.
Southwest Gas anticipates 1.4% growth in customers per year through 2029. The ongoing increase in the customer base will drive demand and performance for the company.
SWX’ Stock Price Performance
In the past three months, shares of the company have risen 5.8% against the industry’s 5.9% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are UGI Corporation (UGI - Free Report) , New Jersey Resources (NJR - Free Report) and Chesapeake Utilities (CPK - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UGI’s long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for UGI’s fiscal 2025 sales implies year-over-year growth of 8.4%.
The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates a year-over-year increase of 7.5%. The Zacks Consensus Estimate for NJR’s fiscal 2025 sales implies year-over-year growth of 2.5%.
The Zacks Consensus Estimate for CPK’s 2025 EPS indicates year-over-year growth of 16.3%. The company delivered an average earnings surprise of 2.4% in the last four quarters.