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Is Southwest Gas (SWX) a Great Value Stock Right Now?
Southwest Gas Southwest Gas (US:SWX) ZACKSยท2025-05-13 14:45

Core Viewpoint - The article emphasizes the importance of value investing and highlights Southwest Gas (SWX) as a strong value stock based on various financial metrics [2][3][7]. Group 1: Value Metrics - Southwest Gas (SWX) has a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating it is among the strongest value stocks currently available [3]. - The PEG ratio for SWX is 2.06, which is lower than the industry average of 2.14, suggesting it may be undervalued relative to its expected earnings growth [4]. - The P/S ratio for SWX is 1.04, compared to the industry's average P/S of 1.56, further indicating potential undervaluation [5]. - SWX has a P/CF ratio of 8.57, which is slightly below the industry average of 8.66, reinforcing the notion of it being undervalued based on cash flow [6]. Group 2: Performance Indicators - Over the past 52 weeks, SWX's PEG ratio has fluctuated between a high of 3.56 and a low of 1.84, with a median of 3.26, indicating variability in its valuation [4]. - The P/CF ratio for SWX has ranged from a high of 9.28 to a low of 7.57, with a median of 8.47, suggesting stable cash flow performance [6]. - The combination of these metrics positions Southwest Gas as a potentially strong investment opportunity for value investors, particularly given its favorable earnings outlook [7].