Core Viewpoint - Stock markets are experiencing significant volatility due to the ongoing trade war, economic slowdown expectations, and rising inflation, leading the Federal Reserve to maintain steady interest rates, which poses challenges for retail investors in stock selection and achieving returns [1] Group 1: Broker Recommendations - Following brokers' recommendations can simplify stock selection, with Urban Outfitters, Inc. (URBN), Inogen, Inc. (INGN), and Southwest Gas Holdings, Inc. (SWX) identified as worthwhile investments [2] - Brokers have direct communication with top management, providing them with insights into company performance and industry conditions, which aids in assessing stock potential [3] Group 2: Stock Selection Strategy - A screening strategy for potential winners includes stocks with broker rating upgrades of 1% or more over the last four weeks, current prices above $5, and an average 20-day trading volume greater than 100,000 [5] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have a proven success record, and those with a VGM Score of A or B combined with a Zacks Rank 1 or 2 offer the best upside potential [6] Group 3: Company Insights - Urban Outfitters, based in Philadelphia, is a lifestyle specialty retailer with a projected 20% year-over-year earnings increase for fiscal 2026 and a 9.1% upward revision in broker ratings over the past four weeks, currently holding a Zacks Rank 2 [7][8] - Inogen, a medical technology company focused on respiratory health, is expected to see a 24.3% year-over-year earnings growth in 2025, with a 25% upward revision in broker ratings and a Zacks Rank 2 [9][10] - Southwest Gas, a regulated utility providing natural gas services, anticipates an 18.4% year-over-year earnings increase in 2025, with a 14.3% upward revision in broker ratings and currently holding a Zacks Rank 1 [10][11]

Core Viewpoint - Southwest Gas Holdings, Inc. is initiating a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. common stock, with an option for underwriters to purchase an additional 1,350,000 shares [1][2] Group 1: Offering Details - The offering includes 9,000,000 existing shares of Centuri's common stock, with a potential additional purchase option for underwriters [1] - Icahn Partners and Icahn Partners Master Fund LP will concurrently purchase $50 million in shares from Southwest Gas Holdings at the offering price [2] - The shares are being offered under an effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be available [3] Group 2: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [5] - Centuri Holdings, Inc. is a utility infrastructure services company that collaborates with regulated utilities to maintain energy networks across the U.S. and Canada [6]

A downtrend has been apparent in New Jersey Resources (NJR) lately with too much selling pressure. The stock has declined 5.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicato ...

Core Viewpoint - Southwest Gas (SWX) is making strategic investments to enhance its infrastructure and operations, benefiting from consistent customer growth, making it a solid investment option in the utility sector [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 5.4% to $3.73 over the past 30 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $5.25 billion, reflecting a year-over-year growth of 2.8% [2] - The long-term earnings growth rate for SWX is estimated at 9.5%, with an average earnings surprise of 6% over the past four quarters [2] Dividend Yield - The company plans to align its dividend payout ratio with that of its gas utility peers post-separation of Centuri [3] - Currently, SWX's quarterly dividend is 62 cents per share, leading to an annualized dividend of $2.48 and a dividend yield of 3.55%, which is significantly higher than the Zacks S&P 500 Composite's yield of 1.53% [3] Debt Position - Southwest Gas has a total debt to capital ratio of 57.88%, which is better than the sector average of 59.9%, indicating a stronger financial position and reduced reliance on borrowed funds [4] Focus on Strategic Investments - The company plans to invest $4.3 billion from 2025 to 2029, with an expected capital expenditure of $880 million in 2025 to support customer growth and system improvements [5] Consistent Customer Growth - SWX has a diversified customer base across Arizona, Nevada, and California, having installed 40,000 first-time meter sets in the year ending March 31, 2025 [6] - The company anticipates a 1.4% annual growth in customers through 2029, which will drive demand and enhance performance [6] Stock Price Performance - Over the past two years, SWX shares have increased by 22%, outperforming the industry's growth of 5.7% [7]

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].

Core Insights - Essential Utilities Inc. (WTRG) reported first-quarter 2025 operating earnings per share (EPS) of $1.03, exceeding the Zacks Consensus Estimate of 80 cents by 28.8% and showing a year-over-year improvement of 41.1% [1] - Total operating revenues reached $784 million, surpassing the Zacks Consensus Estimate of $691 million by 13.3% and reflecting a year-over-year increase of 28.1% [2] - The regulated Water segment generated revenues of $300.8 million, a 7.5% increase from $279.9 million in the first quarter of 2024, driven by higher rates and surcharges [2] - The regulated Natural Gas segment reported revenues of $470.8 million, up from $324.3 million in the first quarter of 2024, primarily due to higher purchased gas costs and increased delivery volumes from colder weather [3] Financial Performance - Operating income totaled $338.9 million, marking a 46.9% year-over-year increase, while operation and maintenance expenses rose slightly by 0.7% to $137.8 million [4] - Interest expenses increased by 12% to $82.1 million from $73.3 million in the prior-year quarter [4] - Current assets were $494.5 million as of March 31, 2025, compared to $485.9 million as of December 31, 2024, while long-term debt rose to $7.52 billion from $7.36 billion [5] Future Outlook - The company reaffirmed its 2025 EPS guidance in the range of $2.07-$2.11, with the Zacks Consensus Estimate at $2.10, exceeding the midpoint of the projected range [6] - Management anticipates a 2-3% expansion in the customer base for the water segment through acquisitions and organic growth [6] - Essential Utilities plans to invest $1.4-$1.5 billion in infrastructure in 2025 and a total of $7.8 billion from 2025 to 2029 to enhance water and natural gas systems and improve customer service [7]

Core Insights - Southwest Gas Holdings Inc. (SWX) reported first-quarter 2025 operating earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of $1.61 by 2.5% and increasing 20.4% from $1.37 in the same quarter last year [1] - Total operating revenues were $1.30 billion, falling short of the Zacks Consensus Estimate of $1.70 billion by 23.5% and decreasing 18% from $1.58 billion in the prior-year quarter [1] Financial Performance - Utility infrastructure service expenses reached $528.6 million, up 2.5% from $515.6 million in the year-ago quarter [2] - Total operating income was $200.4 million, reflecting a 26.7% increase from $158.1 million in the same quarter last year [2] - Total system throughput for the first three months of 2025 was 73.12 million dekatherms, down 4.8% from 76.81 million dekatherms in the first three months of 2024 [2] Cash Flow and Debt - Cash and cash equivalents as of March 31, 2025, were $406.3 million, compared to $363.8 million as of December 31, 2024 [3] - Long-term debt, less current maturities, was $4.33 billion as of March 31, 2025, slightly down from $4.35 billion as of December 31, 2024 [3] - Net cash provided by operating activities in the first three months of 2025 was $291.3 million, down from $543.7 million in the year-ago period [3] Future Guidance - Southwest Gas anticipates the Natural Gas Distribution segment's net income for 2025 to be in the range of $265-$275 million [4] - Capital expenditures are expected to be $880 million for 2025, aimed at supporting customer growth, system improvements, and pipe replacement programs [4] - Projected capital expenditures for the 2025-2029 period are $4.3 billion, with a utility rate base CAGR of 6-8% [4] Market Position - Southwest Gas currently holds a Zacks Rank 1 (Strong Buy) [5]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6][12] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [8] Company Strategy and Development Direction - The company is focused on infrastructure investments, planning to invest between $1.4 billion and $1.5 billion in 2025 [6] - The company is actively pursuing water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [30][31] - The company aims for a compounded annual growth rate of 8% in its combined utility rate base, with specific growth rates of 6% for regulated water and 11% for regulated natural gas segments [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, despite potential headwinds in the remaining quarters [50] - The company is committed to addressing PFAS compliance and expects to meet its $450 million capital spend target by 2028 [8][54] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [7] - Legislative developments in Texas and Ohio are seen as positive for the company's regulatory environment [10][29] Q&A Session Summary Question: Equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [40] Question: Texas rate case expectations - The company plans to file for the Texas rate case by the end of the month, with expectations for revenue increase and ROE consistent with other states [42][44] Question: EPS guidance and performance - Management noted that while the first quarter started strong, it is premature to adjust guidance due to uncertainties in the remaining quarters [50] Question: PFAS operational strategy - The company is proceeding with its PFAS mitigation plans and remains on track with its budget [54] Question: Data centers and gas supply - Discussions with data center developers are ongoing, with various approaches being considered, including behind-the-meter generation [62] Question: Beaver Falls settlement - Management expressed optimism about the Beaver Falls case, expecting it to be on the agenda in June [86]

MDU Resources Group Inc. (MDU) reported first-quarter 2025 operating earnings per share (EPS) of 40 cents, which surpassed the Zacks Consensus Estimate of 36 cents by 11.1%. However, the bottom line decreased 18.4% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Total Revenues of MDUFirst-quarter total operating revenues improved 14.7% to $674.8 million from $588.2 million in the comparable period of 2024.Highlights of MDU’s Earnings ReleaseTotal operating expenses were ...

Financial Data and Key Metrics Changes - The company reported a net income of $7.7 million or $0.74 per share for the second quarter, a 17% increase from $6.4 million or $0.63 per share in the same quarter last year [9] - Year-to-date net income reached $12.9 million or $1.26 per share, compared to $1.14 per share in the first half of the previous fiscal year, marking an 11% increase [10] - The company ended the second quarter with a strong balance sheet, having renewed its line of credit and raised maximum availability to $30 million [11] Business Line Data and Key Metrics Changes - Total delivered gas volumes increased by 20% in the second quarter compared to the same period last year, driven by higher consumption from an industrial customer [4] - Residential and commercial volumes also rose due to a 21% increase in heating degree days compared to the same quarter last year [5] - For the first half of the fiscal year, total gas volumes were up 18% compared to the first half of the previous fiscal year, with heating degree days increasing by 16% [5] Market Data and Key Metrics Changes - The company experienced strong residential development in the region, connecting 359 new services in the first six months of the fiscal year [4] - The regulatory environment remains stable, with a confirmed annual revenue increase of over $4 million based on a 9.9% return on equity and a 59% equity ratio [6] Company Strategy and Development Direction - The company is focused on enhancing safety and reliability through continued investment in its system, despite a slight decrease in renewal activity compared to the previous year [4] - The company is actively participating in discussions regarding potential data center locations in the region, leveraging its access to energy and infrastructure [20] - The company has raised its earnings per share guidance for 2025 to a range of $1.22 to $1.27, reflecting confidence in continued performance [23] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors have affected business activity, particularly for large customers in sensitive sectors [14] - The company is optimistic about recent economic development successes and potential growth opportunities in the Roanoke region [24] - Management emphasized the importance of weather patterns, stating that cooler weather significantly impacts business performance [36] Other Important Information - Capital expenditures for the first half of fiscal 2025 totaled $10.7 million, down approximately 5% from the same period last year [7] - The company is considering long-term refinancing options for its midstream debt, which is classified as current [11] Q&A Session Summary Question: Interest expense trends and refinancing - Management indicated that while interest expense has dropped quarter over quarter, future trends depend on economic conditions and Federal Reserve actions [28][29] Question: AFUDC for Southgate - Management clarified that due to the cost method of accounting, they do not recognize any AFUDC related to Southgate [31] Question: Customer refunds and WNA adjustment - Management confirmed that customer refunds associated with the rate case will be offset by the WNA adjustment [32][33]