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Consumer Confidence Climbs But Economic Woes Remain: 4 Utility Picks
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Key Takeaways
Consumer confidence rose to 91.8 in March, beating estimates despite ongoing economic concerns.
ATO, AWR, FTS, NI show earnings estimate revisions and steady growth outlooks.
Economic pressure from inflation, job declines and rising oil prices keeps markets volatile.
Americans remain confident about the economy amid inflationary pressure and a sharp decline in job openings and hiring. A surge in gasoline prices also added to the pressure. Yet, consumer confidence rose in March, defying concerns about the economy amid a surge in geopolitical tensions.
Given this scenario, we recommend buying five utility stocks, namely, Atmos Energy Corporation (ATO - Free Report) , American States Water Company (AWR - Free Report) , Fortis, Inc. (FTS - Free Report) and NiSource Inc. (NI - Free Report) .
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Unexpected Jump in Consumer Confidence
The consumer confidence index inched up 0.8 points to 91.8 in March, beating analysts’ expectations of the index at 88, the Conference Board said on Tuesday. Although the consumer confidence jumped, consumers’ morale remained low.
The 12-month inflation expectation index rose to 5.2% from 4.5% in February, the highest level since May 2025. The low morale spread as job openings and hiring shrank in February. Job openings declined by 358,000 in February, while layoffs increased by 1.721 million.
The job openings rate fell to 4.2% in February from 4.4% in the prior month. Hiring declined by 498,000 to 4.849 million in February. Also, the unemployment rate rose to 4.4% in February from 4.3% a month earlier.
President Donald Trump’s tariff pressures have already been taking a toll on commodity prices. Moreover, oil prices have surged more than 50% in the past month due to the ongoing conflict with Iran.
Wall Street remained volatile for most of the first quarter, and the ongoing concerns could keep markets choppy for a longer period.
4 Low-Beta Utility Stocks With Upside
Atmos Energy Corporation
Atmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energyoperates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.
Atmos Energy has an expected earnings growth rate of 10.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the last 60 days. Atmos Energy has a beta of 0.74 and a current dividend yield of 2.16%.
American States Water Company
American States Water Company, along with its subsidiaries, provides fresh water, wastewater services and electricity to its customers in the United States. AWR principally works through its two major subsidiaries — Golden State Water Company and American States Utility Services.
American States Water Company has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 60 days. American States Water Company has a beta of 0.69 and a current dividend yield of 2.63%.
Fortis, Inc.
Fortis, Inc. is engaged in the electric and gas utility business. FTS offers regulated utilities comprising electric and gas, as well as engages in non-regulated hydroelectric operations. Fortis operates primarily in Canada, the United States and the Caribbean.
Fortis has an expected earnings growth rate of 5.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. FTS currently carries a Zacks Rank #2. Fortis has a beta of 0.49 and a current dividend yield of 3.35%.
NiSource Inc.
NiSource Inc., together with its subsidiaries, provides natural gas, electricity, and other products and services in the United States. NI’s operating subsidiaries deliver energy to roughly 3.7 million customers in six states — Ohio, Pennsylvania, Virginia, Kentucky, Maryland and Indiana. NiSource has one of the nation’s largest natural gas distribution networks, as measured by the number of customers.
NiSource has an expected earnings growth rate of 7.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. NI presently has a Zacks Rank #2. NiSource has a beta of 0.49 and a current dividend yield of 3.35%.
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Consumer Confidence Climbs But Economic Woes Remain: 4 Utility Picks
Key Takeaways
Americans remain confident about the economy amid inflationary pressure and a sharp decline in job openings and hiring. A surge in gasoline prices also added to the pressure. Yet, consumer confidence rose in March, defying concerns about the economy amid a surge in geopolitical tensions.
Given this scenario, we recommend buying five utility stocks, namely, Atmos Energy Corporation (ATO - Free Report) , American States Water Company (AWR - Free Report) , Fortis, Inc. (FTS - Free Report) and NiSource Inc. (NI - Free Report) .
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Unexpected Jump in Consumer Confidence
The consumer confidence index inched up 0.8 points to 91.8 in March, beating analysts’ expectations of the index at 88, the Conference Board said on Tuesday. Although the consumer confidence jumped, consumers’ morale remained low.
The 12-month inflation expectation index rose to 5.2% from 4.5% in February, the highest level since May 2025. The low morale spread as job openings and hiring shrank in February. Job openings declined by 358,000 in February, while layoffs increased by 1.721 million.
The job openings rate fell to 4.2% in February from 4.4% in the prior month. Hiring declined by 498,000 to 4.849 million in February. Also, the unemployment rate rose to 4.4% in February from 4.3% a month earlier.
President Donald Trump’s tariff pressures have already been taking a toll on commodity prices. Moreover, oil prices have surged more than 50% in the past month due to the ongoing conflict with Iran.
Wall Street remained volatile for most of the first quarter, and the ongoing concerns could keep markets choppy for a longer period.
4 Low-Beta Utility Stocks With Upside
Atmos Energy Corporation
Atmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energyoperates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.
Atmos Energy has an expected earnings growth rate of 10.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the last 60 days. Atmos Energy has a beta of 0.74 and a current dividend yield of 2.16%.
American States Water Company
American States Water Company, along with its subsidiaries, provides fresh water, wastewater services and electricity to its customers in the United States. AWR principally works through its two major subsidiaries — Golden State Water Company and American States Utility Services.
American States Water Company has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 60 days. American States Water Company has a beta of 0.69 and a current dividend yield of 2.63%.
Fortis, Inc.
Fortis, Inc. is engaged in the electric and gas utility business. FTS offers regulated utilities comprising electric and gas, as well as engages in non-regulated hydroelectric operations. Fortis operates primarily in Canada, the United States and the Caribbean.
Fortis has an expected earnings growth rate of 5.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. FTS currently carries a Zacks Rank #2. Fortis has a beta of 0.49 and a current dividend yield of 3.35%.
NiSource Inc.
NiSource Inc., together with its subsidiaries, provides natural gas, electricity, and other products and services in the United States. NI’s operating subsidiaries deliver energy to roughly 3.7 million customers in six states — Ohio, Pennsylvania, Virginia, Kentucky, Maryland and Indiana. NiSource has one of the nation’s largest natural gas distribution networks, as measured by the number of customers.
NiSource has an expected earnings growth rate of 7.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. NI presently has a Zacks Rank #2. NiSource has a beta of 0.49 and a current dividend yield of 3.35%.