Southwest Gas Corporation (SWX) projected a long-term earnings growth rate of 9.16%, supported by a growing customer base and regional economic development. The company plans to invest $6.3 billion from 2026 to 2030, including $1.25 billion in 2026, to upgrade its infrastructure and enhance service reliability.
In 2023, Southwest Gas installed 37,000 first-time meter sets, marking a 1.6% increase in customer base. However, it faces challenges from reliance on interstate pipelines for gas transportation, which could affect supply and financial performance.
Despite a recent share price increase of 5% over the past three months, Southwest Gas holds a Zacks Rank #4 (Sell), while competitors like Atmos Energy, Chesapeake Utilities, and Northwest Natural, holding a Zacks Rank #2 (Buy), have higher projected earnings growth for 2026.
