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Relatively High P/E Ratio Detected in Shares of Ferrellgas Partners in the Gas Utilities Industry (FGP, PNY, SWX, NWN, ATO)

By Shiri Gupta

Below are the three companies in the Gas Utilities industry with the highest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

Ferrellgas Partners ranks highest with a a P/E ratio of 40.96. Following is Piedmont Natural Gas with a a P/E ratio of 33.28. Southwest Gas ranks third highest with a a P/E ratio of 27.06.

Northwest Natural Gas follows with a a P/E ratio of 26.25, and Atmos Energy rounds out the top five with a a P/E ratio of 24.61.

SmarTrend recommended that subscribers consider buying shares of Southwest Gas on May 5th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $67.35. Since that recommendation, shares of Southwest Gas have risen 9.3%. We continue to monitor Southwest Gas for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest p/e ratio ferrellgas partners piedmont natural gas southwest gas northwest natural gas Atmos Energy