Carl Icahn Stock Portfolio: Top 10 Stock Picks

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

Carl Icahn’s Q4 2024 Stake: $681.1 million

Southwest Gas Holdings, Inc. (NYSE:SWX) is a gas utility based in Las Vegas, Nevada. Over 2 million residential, commercial, and industrial clients in Arizona, Nevada, and California rely on the company’s natural gas services.

Southwest Gas Holdings, Inc. (NYSE:SWX) demonstrated resilience in the fourth quarter of 2024, increasing its utility operating profit by $72.5 million for the year. The rise was fueled mostly by $66 million in rate cuts in Nevada and California, as well as a $12 million lift from higher consumer traffic. The firm also managed a slight 2% increase in operating and maintenance expenditures, keeping them below inflation.

Despite the earnings surprise delivered on February 26, Southwest Gas Holdings, Inc. (NYSE:SWX) shares fell 3.02% in premarket trading, closing at $77.28. This fall happened as investors weighed the quarterly performance against broader market conditions and the company’s future prospects. That said, the stock remains within its 52-week range, with highs of $80.29 and lows of $62.48.

O’keefe Stevens Advisory stated the following regarding Southwest Gas Holdings, Inc. (NYSE:SWX) in its Q3 2024 investor letter:

“Southwest Gas Holdings, Inc. (NYSE:SWX) – In our income portfolio, we initiated a position in Southwest Gas Corporation, a utility provider in Nevada, Arizona, California, and Utah. Florida has become less affordable due to higher insurance costs (in parts, unable to get) and rising HOA fees. And as desirability declines resulting from increasing natural disasters. The likelihood of future retirees opting for locations where they do not have to worry about their house getting destroyed or moving into a residential complex that could become unaffordable on a fixed income will result in a generation no longer retiring in the southeast—instead, the West. Population growth will drive incremental power demand in Southwest’s regions.

Anecdotal conversations with friends cited the inability to close on a home in Florida as they could either not find insurance or the quote made the home unaffordable. While Florida has a beneficial tax code, making it cheaper on the surface to live relative to Arizona and Nevada, the cost of living differential is slowly eroding these benefits, which is unlikely to reverse…” (Click here to read the full text)