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/SWX
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Southwest Gas Holdings Inc

Southwest Gas Holdings Inc

SWX
$86.11USD↓-0.91%-0.79 today

MARKET CAP

6.2B

P/E (TTM)

14.2x

FWD P/E

—

DAY RANGE

$86 – $88

52W RANGE

$77
$94

AI Summary

Stalk
Sell NowMedium

SWX has broken below key horizontal support near the 50-SMA and EMAs into a Stage 4 decline, reinforcing a medium-term bearish bias. Short-term price is rejecting rallies into the 9/20/50-EMA zone, favoring immediate sell execution. Long-term trend remains up via a rising 200-day SMA, but near-term weakness dominates. A reclaim and hold above the 50-SMA or EMA zone would invalidate this bearish outlook.

  • ↑Secured $600M authorized rate-base increase in Arizona rate case
  • ↑Planning ~$4.3B capex over next five years for infrastructure
  • ↓California rate-case delays may defer planned revenue
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Southwest Gas Holdings, Inc. (NYSE: SWX) is a prominent regulated utility company that provides essential natural gas services primarily in Arizona, Nevada, and California. With a commitment to safety, reliability, and responsive customer service, the company is transitioning towards a fully regulated model. Southwest Gas is heavily involved in infrastructure investment, aiming to optimize operational efficiency while navigating evolving regulatory frameworks. This positioning aligns with the broader theme of energy infrastructure enhancement, particularly as demand for natural gas continues to grow due to regional economic development.

Bull says

  • ↑Secured $600M authorized rate-base increase in Arizona rate case
  • ↑Planning ~$4.3B capex over next five years for infrastructure
  • ↑Added ~40K new meter sets YoY, supporting revenue growth
  • ↑Reaffirmed 2026 EPS guidance of $4.17–$4.32, implying 12–14% annual growth
  • ↑Increased dividend 4% for 2026; payout ratio ~75% preserves sustainability
  • ↑Strong earnings yield and solid dividend yield support returns

Bear says

  • ↓California rate-case delays may defer planned revenue
  • ↓O&M expenses rose by $7M YoY, compressing operating margins
  • ↓Heavy capex and higher rates elevate debt leverage and liquidity risk
  • ↓Peers’ alternative rate-making strategies intensify competitive pressure
  • ↓Execution risks persist for Great Basin expansion absent firm demand
  • ↓Weak profitability metrics and negative growth revisions flag downside

Investment themes with SWX

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 06-03-2026neutral

Transcript signals

Bull points

  • $38.9 million
  • $27 million
  • $5 million

Bear points

  • Deferred purchase gas costs flipped from a receivable balance for customers of nearly $200 million in March of 2024 to a net liability balance of over $280 million at the end of March of 2025.
  • Interest expense at the utility increased by $8.2 million, primarily due to interest incurred on the now over-collected balance of the PGA.
  • $280 million
Read full transcript analysis ›