Here's Why Southwest Gas (SWX) is a Strong Value Stock

Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market over the next 30 days, based on value, growth, and momentum characteristics [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score assists investors in capitalizing on price trends, utilizing metrics like weekly price changes and monthly earnings estimate shifts [5] Group 3 - The VGM Score combines the Value, Growth, and Momentum Scores to identify stocks with the most attractive overall characteristics, serving as a strong indicator alongside the Zacks Rank [6] - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify the process of building a successful investment portfolio [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [10][11] Group 5 - Southwest Gas Corporation (SWX) is a regulated utility providing natural gas services, currently holding a Zacks Rank of 2 (Buy) and a VGM Score of A [12] - SWX has a forward P/E ratio of 19.66, indicating attractive valuation metrics for value investors [12][13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.05 to $3.74 per share, and an average earnings surprise of 0.5% [13]