Billionaire Carl Icahn’s Top 10 Stocks

3. Southwest Gas Holdings, Inc. (NYSE:SWX)

Icahn Capital LP’s Equity Stake: $775.77 Million

Number of Hedge Fund Holders: 46

Southwest Gas Holdings, Inc. (NYSE:SWX) is one of Billionaire Icahn’s top 10 utilities stocks. It specializes in distributing and transporting natural gas. It also provides trenching, installation, and replacement of underground pipes and maintenance services for energy distribution systems.

In its second quarter, the company reported a significant improvement in its utility operating margin, raising its annual net income to $4 million. The utility margin increased by $11 million, attributed to a recovery in investments in Nevada and customer growth.

Southwest Gas Holdings, Inc. (NYSE:SWX)’s revenues have experienced a modest rise, showing a 2.19% increase in the past year as of the first quarter of 2024. Although the revenue growth for each quarter saw a small decline of -1.39% in the first quarter of 2024, the general upward movement in earnings suggests the firm’s strength and capacity to maneuver through economic changes.

Southwest Gas Holdings, Inc. (NYSE:SWX) boasts a strong balance sheet, with a significant cash position of $600 million and limited debt financing needs through 2026. The strong balance sheet has been the catalyst behind the company’s maintaining dividend payments for over half a century and raising them for 17 consecutive years.

Currently, the stock boasts a dividend yield of 3.42% while trading at a price-to-earnings multiple of 24, which suggests it might be trading at a discount relative to its earnings growth potential.

At the end of Q2 2024, 46 hedge funds tracked by Insider Monkey reported having stakes in Southwest Gas Holdings, Inc. (NYSE:SWX), compared with 20 in the previous quarter. With over 11.02 million shares, Icahn Capital LP was the company’s leading stakeholder in Q2.