Economic Overview - Consumer confidence fell to 94.2 in September, a decline of 3.6 points month over month, missing the consensus estimate of 96 [4] - The Present Situation Index dropped 7 points to 125.4, indicating a negative assessment of current business and labor market conditions [4] - Short-term expectations for income, business conditions, and employment declined to 74.8, with readings below 80 suggesting a higher risk of recession [5] - Concerns over a shrinking labor market have negatively impacted consumer confidence, with job availability assessments declining for nine consecutive months [5] - High prices of goods, exacerbated by tariffs, continue to pressure consumer spending, while inflation remains a concern [6] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Consolidated Water Co. Ltd. (CWCO), NorthWestern Energy Group, Inc. (NWE), and Northwest Natural Holding Company (NWN), all carrying a Zacks Rank 2 (Buy) [2] - Recommended stocks are categorized as low-beta (beta greater than 0 but less than 1), suggesting a focus on low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.3% for the current year, with a current dividend yield of 2.05% and a beta of 0.75 [7][8] - **Consolidated Water Co. Ltd. (CWCO)**: Focuses on seawater desalination and water distribution in areas with scarce potable water. Expected earnings growth rate is 0.9% for the current year, with a current dividend yield of 1.60% and a beta of 0.58 [9][10] - **NorthWestern Energy Group, Inc. (NWE)**: Provides reliable energy to customers in Montana, South Dakota, and Nebraska. Expected earnings growth rate is 5.6% for the current year, with a current dividend yield of 4.54% and a beta of 0.40 [11][12] - **Northwest Natural Holding Company (NWN)**: Builds and maintains natural gas distribution systems, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a current dividend yield of 4.37% and a beta of 0.59 [13][14]

Economic Overview - U.S. consumer confidence dropped to 97.4 in August from 98.7 in July, indicating a decline of 1.3 points, with short-term expectations for income, business conditions, and employment also falling to 74.8 [4][5] - Concerns about the economy have been exacerbated by tariffs imposed by President Trump, which have raised inflation fears and impacted consumer confidence [5][6] - A weak labor market, characterized by slow job additions, has further fueled recession fears, despite low layoffs and unemployment rates [7] Investment Recommendations - Given the economic uncertainty, it is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), Northwest Natural Holding Company (NWN), Ingredion Incorporated (INGR), and Carriage Services, Inc. (CSV) [2][10] - These stocks are characterized by a beta greater than 0 but less than 1, indicating lower volatility, and they also offer high dividend yields [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.2% for the current year, with a beta of 0.75 and a dividend yield of 2.09% [8][9] - **Fortis, Inc. (FTS)**: Operates in the electric and gas utility sector, primarily in Canada and the Caribbean. Expected earnings growth rate is 4.6% for the current year, with a beta of 0.48 and a dividend yield of 3.57% [10][11] - **Northwest Natural Holding Company (NWN)**: Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a beta of 0.59 and a dividend yield of 4.72% [12][13] - **Ingredion Incorporated (INGR)**: Provides ingredient solutions specializing in nature-based sweeteners and starches, serving various sectors. Expected earnings growth rate is 6.7% for the current year, with a beta of 0.77 and a dividend yield of 2.47% [14] - **Carriage Services, Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. Expected earnings growth rate is 23.4% for the current year, with a beta of 0.86 and a dividend yield of 1.03% [15][16]

Market Overview - Volatility has returned to Wall Street due to escalating tensions between Iran and Israel, with the U.S. gradually getting involved [2][5] - The Dow declined by 0.7%, while the S&P 500 and Nasdaq fell by 0.8% and 0.9%, respectively [5] - Recent geopolitical tensions have unsettled markets, which could remain volatile for an extended period [9] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), MDU Resources Group, Inc. (MDU), and NiSource Inc. (NI) [3][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [4][11] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [10] - Expected earnings growth rate of 6% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the last 60 days [12] - Current dividend yield is 2.27% and beta is 0.71 [12] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [13] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Consensus Estimate improvement of 3.3% over the last 60 days [14] - Current dividend yield is 3.70% and beta is 0.49 [14] MDU Resources Group, Inc. (MDU) - Provides value-added natural resource products and regulated energy delivery services [15] - Expected earnings growth rate of 5.6% for the current year, with a Zacks Consensus Estimate improvement of 1.1% over the last 60 days [15] - Current dividend yield is 3.18% and beta is 0.72 [15] NiSource Inc. (NI) - Delivers natural gas and electricity to approximately 3.7 million customers across six states [16] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the last 60 days [17] - Current dividend yield is 2.83% and beta is 0.54 [17]