Zacks Investment Research
02 Jun 2026, 18:45 UTC · 2h ago
4 Gas Utility Stocks Positioned to Benefit Amid Industry Headwinds

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Zacks Investment Research
02 Jun 2026, 18:45 UTC · 2h ago

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Story key points
3 claims · impact-rated
Rising demand for clean-burning natural gas is creating growth opportunities for US distribution companies like Atmos Energy, Southwest Gas, Brookfield Infrastructure, and ONE Gas. — Increased demand for core product services generally supports revenue growth and positive valuations for the named utility stocks.
+0.40The natural gas distribution industry faces headwinds from aging infrastructure and the increasing costs of pipeline maintenance and upgrades. — High capital expenditure requirements for maintenance can compress margins and reduce free cash flow.
-0.30Advancements in renewable energy technology and battery storage are increasing competition and may gradually weaken long-term natural gas demand. — Substitution risk from cheaper, cleaner energy sources poses a long-term structural threat to the utility gas distribution business model.
-0.30Ticker attribution
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Model heads
Well positioned to benefit from rising natural gas demand and ongoing infrastructure investments.
Expected to see growth prospects supported by capital spending and infrastructure expansion.
Expected to see growth prospects supported by capital spending and infrastructure expansion.
Expected to see growth prospects supported by capital spending and infrastructure expansion.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
[mutual] Both companies operate within the Zacks Utility Gas Distribution industry providing natural gas services.
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