Buy 4 Low-Beta Defensive Stocks as Fed Keeps Interest Rate Unchanged
SWX, ATO, COCO and WLY stand out as low-beta defensive picks as the Fed holds rates steady amid market volatility, inflation worries and a tech selloff.
Southwest Gas Holdings, Inc., operating through its various subsidiaries, is primarily engaged in the delivery and transportation of natural gas to customers ...
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Est. EPS $0.18 · Revenue $346.96M · 4 analysts
Est. EPS $1.72 · Revenue $592.79M · 3 analysts
Est. EPS $4.25 · Revenue $1.94B · 4 analysts
Est. EPS $2.10 · Revenue $630.73M · 1 analysts
$2.50 per share
$2.50 per share
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $1.9B | -62.0% | -38.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $439.8M | +121.2% | -69.6% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +29.3% | +48.0% | +51.9% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +24.4% | +158.1% | -37.2% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +22.7% | +482.9% | -50.3% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $-251.8M | -161.4% | -274.2% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | -13.0% | -261.9% | -511.3% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 88.6% | -38.6% | -0.5% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.28x | +59.7% | -22.9% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $10.4B | -13.3% | +0.7% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 6.08 vs 5.46 | +11.3% | 0.58 vs 0.18 | +219.7% |
| Revenue Surprise | $1.9B vs $3.6B | -46.4% | $358.2M vs $347.0M | +3.2% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| May 7, 2026 | Carson Molly R. | director | Common Stock | A | 1,196 | — |
| May 7, 2026 | Kim Leezie | director | Common Stock | A | 1,196 | — |
| May 7, 2026 | Kim Leezie | director: | — | — | 0 | — |
| May 7, 2026 | Carson Molly R. | director: | — | — | 0 | — |
| Feb 27, 2026 | Haller Karen S | officer: President and CEO | Common Stock | D | 13,105 | $80.02 |
Operator: Welcome to Southwest Gas Holdings' Second Quarter 2026 Earnings Conference Call. Today's call is being recorded, and our webcast is live. A replay will be available later today and for the next 12 months on the Southwest Gas Holdings' website. [Operator Instructions] I will now turn the call over to Tyler Franek, Manager of Investor Relations of Southwest Gas Holdings. Tyler Franek: Thank you, Joanna, and hello, everyone. We appreciate you joining the call today. This morning, we issued and posted to Southwest Gas Holdings' website our second quarter 2026 earnings release and filed the associated Form 10-Q. The slides accompanying today's call are also available on Southwest Gas Holdings' website. We'll refer to those slides by number throughout the call today. Please note that on today's call, we will address certain factors that may impact 2026 earnings and discuss longer term guidance. Information that will be discussed today contains forward-looking statements. These statements are based on management's assumptions on what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions, regulatory approvals and capital projects. This cautionary note and a note regarding non-GAAP measures are included on Slides 2 and 3 of this presentation in today's press release and in our filings with the Securities and Exchange Commission. We encourage you to review each of these disclosures. These risks and uncertainties may cause actual results to differ materially from statements made today. We caution against placing undue reliance on any forward-looking statements, and we are -- assume no obligation to update any such statement. As shown on Slide 4, on today's call, we have Justin Brown, President and CEO; and Justin Forsberg, Chief Financial Officer and Treasurer. Other members of the management team are also available to answer your questions during the Q&A portion of the call today, if necessary. I'll now turn the call over to Justin Brown. Justin Brown: Good morning, everyone, and thank you for joining us today. Beginning on Slide 5, we continued our strong momentum in the second quarter, reporting adjusted earnings per share from continuing operations of $0.45, which is adjusted for the amount of California revenues that had been deferred in a memorandum account since the first quarter. This performance reflects ongoing execution of our regulatory strategy to support the timely recovery of prudent investments as well as materially lower interest expense following the payoff of all outstanding HoldCo debt last summer. We remain confident in our outlook and are reaffirming our 2026 and long-term guidance ranges. With active proceedings across each of our jurisdictions, our regulatory strategy doesn't depend on any single outcome, giving us multiple credible paths to achieve our objectives regardless of how individual cases unfold or how the political and …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Karen S. Haller | Advisor | USD 3,151,059 | Female | 1964 | Active |
Justin L. Brown | President, Chief Executive Officer & Director | USD 1,278,932 | Male | 1973 | Active |
Justin S. Forsberg | CFO, Treasurer & Senior VP | USD 900,356 | Male | — | Active |
Catherine Mazzeo | Senior Vice President, Chief Legal, Safety & Compliance Officer and Corporate Secretary | USD 863,744 | Female | 1977 | Active |
Fabio A. Pineda | Vice President, Controller & Chief Accounting Officer | — | Male | 1982 | Active |
Tyler Franek | Manager of Investor Relations | — | Male | — | Active |
SWX, ATO, COCO and WLY stand out as low-beta defensive picks as the Fed holds rates steady amid market volatility, inflation worries and a tech selloff.
Let's focus on five utility stocks, AEE, EIX, SWX, SO and VST, that are expected to post an earnings beat this reporting cycle.
Company to Host Earnings Conference Call on August 5, 2026 LAS VEGAS, July 22, 2026 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas Holdings" or the "Company") will hold its second quarter earnings conference call and webcast on August 5, 2026, at 11:00 AM ET, following its news release to be issued before the markets open that day. The conference call will be webcast live on the Company's website at www.swgasholdings.com.
LAS VEGAS, July 15, 2026 /PRNewswire/ -- The Board of Directors for Southwest Gas Holdings, Inc. ("Southwest Gas") (NYSE: SWX) has declared the following third quarter cash dividend: Common Stock Payable September 1, 2026 Of Record August 17, 2026 Dividend $0.645 per share The dividend equates to $2.58 per share on an annualized basis. The Company has paid quarterly dividends continuously since going public in 1956.
The smart money exited, but Wall Street did not follow. Three legendary investors—Stanley Druckenmiller, David Tepper, and Carl Icahn—unloaded positions in Alphabet (NASDAQ: GOOGL | GOOGL Price Prediction), Delta Air Lines (NYSE: DAL), and Southwest Gas (NYSE: SWX) as of Q1 2026 13F disclosures, yet sell-side consensus on all three remains firmly bullish, and the stocks have continued higher since the exit quarter closed.