10 Best Conglomerate Stocks to Buy According to Hedge Funds

5) MDU Resources Group, Inc. (NYSE:MDU)

Number of Hedge Fund Holders: 27

MDU Resources Group, Inc. (NYSE:MDU) is engaged in the regulated energy delivery, and construction materials and services businesses in the US.

The company’s pipeline business, which is expected to fuel growth momentum, focuses on the transportation and storage of natural gas. As per Wall Street analysts, this business is expected to continue to be aided by higher transportation volumes and service rates. The rise in transportation volumes is driven by organic growth projects. Furthermore, new transportation and storage rates, together with higher storage-related revenues, should continue to fuel the income growth of the business. Furthermore, MDU Resources Group, Inc. (NYSE:MDU)’s investments in the pipeline business are expected to aid customer growth and the completion of ongoing projects driven by increasing customer demand.

The company has also announced a capital investment plan of $3.1 billion for the period from 2025 through 2029, demonstrating a 15% increase over the previous five-year plan (2024-2028). This investment focuses on enhancing and expanding MDU Resources Group, Inc. (NYSE:MDU)’s electric, natural gas, and pipeline services. By focusing on strategic upgrades and expansions, the company’s pipeline operations are well-positioned to optimize service delivery and support long-term profitability.

Approximately $473 million of this plan has been earmarked specifically for the pipeline segment. This investment will allow MDU Resources Group, Inc. (NYSE:MDU) to modernize its pipeline infrastructure and address increasing customer demand. Overall, the investment strategy aligns with MDU Resources Group, Inc. (NYSE:MDU)’s goal of achieving a 6%–8% annual earnings growth target.