Here's Why You Should Add ONE Gas Stock to Your Portfolio Now

ONE Gas, Inc. OGS continues to benefit from strategic investments, 100% regulated operations and an expanding customer base. Given its growth opportunities, OGS makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.OGS’ Growth ProjectionsThe Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased nearly 1% in the past 60 days to $3.88.The Zacks Consensus Estimate for fourth-quarter 2024 sales is pinned at $655.26 million, indicating a year-over-year increase of 8.1%.OGS’ long-term (three to five years) earnings growth rate is 2.89%.Debt Position of OGSCurrently, ONE Gas’ total debt to capital is 43.44%, better than the industry’s average of 50.49%.The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.9. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.OGS’ Dividend HistoryRegular investments in a fully regulated company and OGS’ ability to generate sufficient cash flows should support management’s plans of rewarding its shareholders with an average annual dividend increase of 1-2% through 2028, subject to the board of directors' approval. Currently, ONE Gas’ quarterly dividend is 66 cents per share, resulting in an annualized dividend of $2.64. The company’s current dividend yield is 3.88%, better than the Zacks S&P 500 composite’s 1.22%.OGS’ Systematic Investments & Customer GrowthONE Gas’ 2025 capital investment, including asset removal costs, is expected to be $750 million. Capital investments for extensions to new customers are expected to be nearly $180 million, primarily due to continued growth opportunities in Texas and Oklahoma.OGS expects its capital expenditure for the 2025-2029 period to be $4 billion or $750-$850 million per year.The company has been steadily increasing its customer base every year since 2015 and expects an average annual customer growth of 0.9% for 2024-2028 across its service territories. For the first nine months of 2024, OGS’ average customer count included nearly 16,000 new connections.OGS’ Price PerformanceIn the past six months, the stock has risen 12.2% compared with the industry’s 9.9% growth. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are New Jersey Resources NJR, sporting a Zacks Rank #1 (Strong Buy) at present, and Atmos Energy ATO and NiSource NI, both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates year-over-year growth of 5.8%. The Zacks Consensus Estimate for sales indicates an improvement of 2.5% from the previous year’s registered figure.  ATO’s long-term earnings growth rate is 7.01%. The company delivered an average earnings surprise of 3.4% for the trailing four quarters.NI’s long-term earnings growth rate is 7.45%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 8.1%. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis Report ONE Gas, Inc. (OGS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks