Wolfe Research Upgrades Southwest Gas (NYSE:SWX) to Strong-Buy

Key Points

• Wolfe Research upgraded Southwest Gas to “strong buy” from “hold.” Analysts overall rate the stock “Buy,” with a consensus price target of $101.25.
• Southwest Gas reported quarterly EPS of $0.20, beating the $0.14 estimate, but revenue of $298.2 million fell short of expectations and declined 5.9% year over year.
• The company’s Nevada and California rate cases are complete, while its Arizona case is progressing; its $2.3 billion Great Basin expansion remains on track for a planned 2028 target.

Southwest Gas (NYSE:SWX - Get Free Report) was upgraded by stock analysts at Wolfe Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Thursday, Zacks reports.

A number of other brokerages also recently commented on SWX. Weiss Ratings downgraded shares of Southwest Gas from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, September 14th. Wall Street Zen downgraded Southwest Gas from a "hold" rating to a "sell" rating in a report on Sunday, October 4th. Mizuho set a $103.00 price target on Southwest Gas in a report on Wednesday, August 5th. Scotiabank initiated coverage on Southwest Gas in a research report on Tuesday, September 29th. They issued a "sector outperform" rating and a $95.00 price target for the company. Finally, Wells Fargo & Company upped their price objective on Southwest Gas from $105.00 to $107.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating and seven have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $101.25.

Southwest Gas Trading Down 2.0%

NYSE SWX opened at $90.48 on Thursday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.99 and a current ratio of 0.89. The company has a market capitalization of $6.56 billion, a price-to-earnings ratio of 22.07, a price-to-earnings-growth ratio of 1.94 and a beta of 0.55. The company's 50-day simple moving average is $87.07 and its two-hundred day simple moving average is $88.31. Southwest Gas has a one year low of $78.26 and a one year high of $94.46.

Southwest Gas (NYSE:SWX - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The utilities provider reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.06. Southwest Gas had a net margin of 17.23% and a return on equity of 6.98%. The firm had revenue of $298.18 million during the quarter, compared to analysts' expectations of $346.50 million. During the same quarter in the prior year, the company earned $3.74 EPS. The company's revenue was down 5.9% compared to the same quarter last year. Equities analysts forecast that Southwest Gas will post 4.27 EPS for the current fiscal year.

Insiders Place Their Bets

In other Southwest Gas news, SVP Julie Williams sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $81.81, for a total value of $204,525.00. Following the completion of the sale, the senior vice president directly owned 26,450 shares in the company, valued at $2,163,874.50. This trade represents a 8.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.63% of the stock is currently owned by company insiders.

Institutional Trading of Southwest Gas

Several hedge funds and other institutional investors have recently made changes to their positions in SWX. Eurizon Capital SGR S.p.A. increased its holdings in Southwest Gas by 169.5% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 318 shares of the utilities provider's stock worth $26,000 after buying an additional 200 shares during the period. R Squared Ltd lifted its stake in Southwest Gas by 107.0% during the 3rd quarter. R Squared Ltd now owns 7,656 shares of the utilities provider's stock valued at $624,000 after acquiring an additional 3,957 shares during the period. Maryland State Retirement & Pension System lifted its stake in Southwest Gas by 2.1% during the 3rd quarter. Maryland State Retirement & Pension System now owns 62,346 shares of the utilities provider's stock valued at $5,084,000 after acquiring an additional 1,279 shares during the period. Jacobi Capital Management LLC purchased a new stake in shares of Southwest Gas in the 3rd quarter valued at $76,000. Finally, Illinois Municipal Retirement Fund boosted its holdings in shares of Southwest Gas by 1.0% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 17,816 shares of the utilities provider's stock valued at $1,453,000 after acquiring an additional 170 shares during the last quarter. Hedge funds and other institutional investors own 92.77% of the company's stock.

Southwest Gas News Summary

Here are the key news stories impacting Southwest Gas this week:

• Positive Sentiment: Southwest Gas beat third-quarter adjusted EPS expectations, reporting $0.20 per share versus analysts’ estimate of about $0.14. The company attributed support to lower interest costs, and it reaffirmed its 2026 adjusted EPS outlook of $4.17–$4.32. Article: SWX Q3 Earnings Beat on Lower Interest Cost, Sales Decline Y/Y
• Positive Sentiment: The company completed Nevada and California rate cases, while its Arizona case continues to progress. Approved rate increases can support utility earnings by improving recovery of operating costs. Article: How Investors Are Reacting To Southwest Gas Holdings (SWX) Rate Increase Approvals
• Positive Sentiment: Southwest Gas says its $2.3 billion Great Basin expansion remains on track, with a certificate filing planned for the fourth quarter and the project targeted for 2028. This offers a longer-term growth opportunity, though it depends on regulatory approval and execution. Article: Southwest Gas reaffirms 2026 adjusted EPS while advancing Great Basin expansion
• Neutral Sentiment: One valuation analysis estimates SWX may be about 8% undervalued, citing the earnings beat and rate relief. This is an analytical estimate, not a company forecast or assurance of share-price gains. Article: Southwest Gas Holdings (SWX) Could Be 8% Undervalued
• Negative Sentiment: Third-quarter revenue was $298.2 million, below analysts’ roughly $346.5 million estimate and down 5.9% year over year. The shortfall and declining sales temper the positive EPS surprise. Article: Southwest Gas Q3 Adjusted Earnings Rise, Revenue Falls

Southwest Gas Company Profile

Southwest Gas Corporation NYSE: SWX is a regulated natural gas distribution utility serving residential, commercial and industrial customers. The company purchases, transports and delivers natural gas through its distribution networks, while also providing services related to system operations, maintenance, customer support and energy conservation.

Southwest Gas serves communities in Arizona, Nevada and portions of California. Its service territory includes major metropolitan areas such as Las Vegas and Phoenix, as well as numerous smaller communities across the southwestern United States.

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