5 Best Utility Stocks to Buy According to Financial Media

3. UGI Corporation (NYSE:UGI)

Number of Hedge Fund Holders: 29

Number of Times Stock Appeared in Top Picks of Financial Media: 4

UGI Corporation (NYSE:UGI) markets energy-related products and services. In early September, investment advisory Mizuho maintained a Neutral rating on UGI Corporation (NYSE:UGI) stock and lowered the price target to $29 from $33. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in UGI Corporation (NYSE:UGI) with 6.6 million shares worth more than $152 million.

In its Q3 2023 investor letter, First Pacific Advisors, an asset management firm, highlighted a few stocks and UGI Corporation (NYSE:UGI) was one of them. Here is what the fund said:

“UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. This is our kind of company – despite its disparate parts, UGI has increased earnings at a relatively steady high single digit rate historically while distributing excess cash through dividends.24 We believe shares are down primarily because of poor execution at AmeriGas, UGI’s U.S. propane business, but also because of losses at the company’s European energy marketing business and the negative effects of warm weather on earnings. We believe UGI is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position.”