Our weekly Stock Scores report is Bespoke’s ranking of all S&P 1500 stocks based on our proprietary Fundamental, Technical, and Sentiment ratings. A large number of data points go into each category. For our Fundamental rating, we of course look at valuation measures and growth expectations to rate every stock relative to other names in its industry group. For our Technical rating, we look at the stock’s upside (or downside) price momentum, relative strength, overbought/oversold levels, and more. Finally, for our Sentiment Rating, we look at analyst sentiment and short interest levels among other things.
In order for a stock to rank at the top of our list, it must rank highly across all three categories with strong fundamentals, technicals, and sentiment. This is a “fusion” approach to stock selection that many investors have adopted in recent years.
A boring old Utilities company — Southwest Gas Holdings (SWX) — came in as one of the top stocks this week with a total score of 83.51 (out of 100). The company operates in the Southwestern US states like Nevada and California. On a technical basis, the stock scored perfectly and price action today is confirming this as it has risen 1.76% up to all-time highs. For most of this year, the stock has been trending sideways in what is a longer-term uptrend. In early May, the stock fell below this range but found nice support at its 200-day moving average and then bounced. In the past week, it again pulled back to find support at the 50-DMA from where it has reached its current levels.
In addition to a strong technical picture, the fundamentals are solid as the stock is valued cheaply by several measures as shown below. With this cheaper valuation, Southwest Gas also has higher sales growth around 13% YoY compared to an average of 9.64% for other gas utilities. On top of all of this, SWX has paid out a consistent and increasing dividend for the past decade since the financial crisis. The dividend currently sits at 2.48%, which is a bit below average for a utility but again has been growing at a solid pace, rising 5% last year alone. If you would like to view our full Stock Scores report and see where stocks you own rank, start a two-week free trial to Bespoke Premium today!