• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Southwest Gas Holdings (SWX)

The utility business isn’t a particularly exciting one. But for investors who want to earn steady returns through thick and thin, the sector should not be ignored.

No matter what the economy is doing, people still need to heat their homes in the winter. And that’s why Southwest Gas Holdings could be an opportunity.

The company’s subsidiary, Southwest Gas Corp, is a natural gas utility serving more than 2 million customers in Arizona, Nevada and parts of California. Meanwhile, its other segments provide natural gas storage, transportation and other energy infrastructure services.

While the S&P 500 is down about 5% in 2022, Southwest Gas Holdings shares are up 16% year to date.

The company also recently raised its quarterly dividend and offers a decent 3.1% annual yield.

Last week, BofA analyst Julien Dumoulin-Smith upgraded Southwest from neutral to buy, and raised the price target to $88. That implies potential upside of roughly 10% from current levels.

Elevate Your Investments with Moby

Gain a competitive edge with Moby's expert investing insights. Our data-driven analysis and personalized recommendations empower you to make smarter investment decisions. Enhance your portfolio and stay ahead of market trends. Start your journey to financial success today at Moby.

Get Started

Logitech International (LOGI)

Compared to the solid performance of many utility stocks in 2022, tech is a beaten-down sector at the moment. Year to date, the tech-centric Nasdaq has slipped 10%.

Logitech is one of the out-of-favor tech stocks. Shares of the computer peripherals manufacturer tumbled 16% in 2021 and is down 34% over the past 12 months.

But business isn’t exactly in the dumps. Earlier this month, management updated their outlook full-year outlook, projecting 2% to 5% sales growth in 2022, followed by mid-single-digit growth in 2023.

BofA sees a major rebound in the stock on the horizon. In late March, analyst Adam Angelov initiated coverage on Logitech with a buy rating, citing the company’s “strong track record of execution” and market share expansion.

His price target is set at $107 — about 50% above where the stock currently trades.

FedEx (FDX)

FedEx shares had a strong run in the first year of the pandemic. After all, delivery service is an essential part of e-commerce — an industry that flourished in the stay-at-home environment.

But more recently, sentiment has changed towards the delivery giant. FedEx shares have slipped more than 20% over the past year.

The company delivered a solid earnings report last month. During the quarter, revenue rose 9.8% year over year to $23.6 billion. Adjusted earnings jumped 32% to $4.59 per share.

BofA analyst Ken Hoexter reiterated a buy rating on FedEx shares last month noting the company’s “historically low valuation.”

Right now, FedEx stock has a price-to-earnings ratio of 12, substantially below its five-year average P/E of 48.

While Hoexter also lowered his price target on FedEx from $297 to $280, the new target is still roughly 25% above where the stock sits today.

Follow These Steps Once Your Portfolio Reaches $100K

If you've amassed a $100k+ portfolio, it's time to meet with a trusted advisor. Zoe Financial's elite network of fiduciary advisors offers personalized strategies to enhance your financial success. Experience exclusive investment opportunities and bespoke wealth management services.

Trust Zoe Financial for unparalleled expertise and a commitment to your prosperity.

Get Started

More from Moneywise

Sponsored

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.