Southwest Gas (US:SWX) ZACKSยท2025-06-23 14:41Core Viewpoint - Southwest Gas (SWX) is positioned as a strong investment option in the Zacks Utility Gas Distribution industry due to its consistent infrastructure investments, customer growth, and effective debt management [1] Growth Forecast & Surprise History - The Zacks Consensus Estimate for SWX's 2025 earnings per share (EPS) has increased by 5.1% to $3.72 over the past 60 days [2] - The 2026 sales estimate is projected at $5.13 billion, reflecting a year-over-year growth of 6% [2] - SWX's long-term earnings growth rate is forecasted at 9.9%, with an average earnings surprise of 6% over the last four quarters [2] Debt Profile Overview - Southwest Gas has a total debt to capital ratio of 57.36%, which is better than the sector average of 59.23%, indicating a stronger financial position and lower reliance on borrowed funds [3] Strategic Capital Allocation Plan - The company plans to invest $4.3 billion in capital from 2025 to 2029 to meet the growing demand for energy solutions [4] - For 2025, capital expenditure is estimated at $880 million, aimed at customer growth, system enhancements, and pipe replacement initiatives [4] Customer Base Growth - Southwest Gas serves a diverse customer base across Arizona, Nevada, and California, having installed 40,000 first-time meter sets in the 12 months ending March 31, 2025 [5] - The company anticipates a 1.4% annual increase in customers through 2029, which is expected to enhance its performance [5] Return to Shareholders - The company has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of 62 cents per share, leading to an annualized dividend of $2.48 [6] - The current dividend yield stands at 3.36%, outperforming the Zacks S&P 500 Composite average of 1.25% [6] Stock Performance - In the past month, SWX shares have increased by 4.3%, compared to the industry's growth of 1.4% [9]