Stocks of the natural gas-producing and natural gas-related companies are termed as gas stocks. Owing to the growing demand for natural gas as a cleaner fossil fuel than other alternatives, gas stocks offer excellent opportunities for investment. Natural gas produces much fewer greenhouse gas emissions than other fossil fuels, like coal. With so many transportation options out there, gas stocks can be very interesting to look at.
The demand for natural gas is expected to grow at an average annual rate of 1.7% through 2040. This will mean an increase in demand by 50% compared to the 2018 level. Therefore, investment in gas stocks of oil and gas producers, liquefied natural gas producers, and natural gas pipeline operators has a bright future.
|ATO||Atmos Energy Corporation||$92.65||-0.04%||12.1B|
|CLNE||Clean Energy Fuels Corp.||$9.01||267.76%||2.0B|
|CNP||CenterPoint Energy, Inc.||$26.30||23.47%||15.6B|
|CPK||Chesapeake Utilities Corporation||$129.60||35.27%||2.3B|
|NGG||National Grid plc||$64.94||9.01%||47.1B|
|NJR||New Jersey Resources Corporation||$37.47||29.39%||3.6B|
|NWN||Northwest Natural Holding Company||$45.37||2.21%||1.4B|
|OGS||ONE Gas, Inc.||$67.54||-2.65%||3.6B|
|RGCO||RGC Resources, Inc.||$22.28||-6.27%||186.2M|
|SJI||South Jersey Industries, Inc.||$22.09||14.04%||2.5B|
|SPH||Suburban Propane Partners, L.P.||$16.07||-4.74%||1.0B|
|SWX||Southwest Gas Holdings, Inc.||$68.85||6.17%||4.1B|
|TGS||Transportadora de Gas del Sur S.A.||$5.70||24.18%||885.7M|
|COG||Cabot Oil & Gas||$135.00||157.14%||42.1M|
|UNG||United States Natural Gas Fund||$19.35||55.30%|
|BOIL||ProShares Ultra Bloomberg Natural Gas||$73.00||78.09%|
|KOLD||ProShares UltraShort Bloomberg Natural Gas||$6.59||-78.30%|
|UNL||United States 12 Month Natural Gas Fund||$14.53||60.91%|
|GAZ||iPath Series B Bloomberg Natural Gas Subindex Total Return ETN||$29.98||50.43%|
Factors to Consider Before Investing in Gas Stocks
Investors must remember that the growth and development of gas companies and gas stocks are affected by the macroeconomic environment to a large extent. New regulations, government policies, trade relationships, and many other factors impact the production costs and production efficiency of natural gas companies.
Therefore, investors must consider the overall economic conditions in addition to the local parameters surrounding the specific company and stock. The fundamental analysis must include the revenues and earnings growth, cash flow generation, production efficiency, cost of production, number of contracts, and the comprehensive business model of the companies.
Additionally, investors must also consider that the success of natural gas stocks is inversely correlated to the performance of renewable energy companies. Gas stocks suffer a setback due to the growing pace of renewable energy resources.
Which Gas Stocks Should I Buy?
We have compiled a list of the best gas stocks and ETFs for you to select from. The listed gas stocks have been around for a long time and have demonstrated solid growth, the sustainability of revenues, and a large number of fixed contracts.
Gas stocks follow a low-risk profile with strong returns and above-average dividend yield. Therefore, they become suitable investments for both short-term income-seeking investors and long-term returns-seeking ones.