5 Oversold Dividend Growth Stocks to Buy

3. ONE Gas, Inc. (NYSE:OGS)

Relative Strength Index: 25.56

5-Year Dividend Growth Rate: 5.21%

On May 21, Morgan Stanley lowered its price recommendation on ONE Gas, Inc. (NYSE:OGS) to $82 from $86. It reiterated an Equal Weight rating on the shares. The adjustment came as part of the firm’s update to price targets for North American Regulated & Diversified Utilities and Independent Power Producers (IPPs) for April. Arcaro told investors that utilities lagged the S&P 500’s return during the month.

Earlier, on May 18, Truist reduced its price goal on OGS to $95 from $99. It kept a Buy rating on the stock. The change was included in a broader research note updating the firm’s Power and Utilities models ahead of the American Gas Association’s Financial Forum. According to the analyst, the sector remains in the third year of the data center expansion cycle, with investment levels continuing to rise alongside growth expectations. The analyst added that vertically integrated electric utilities are among the biggest beneficiaries, given their role in building the infrastructure needed to support growing electricity demand from data centers.

ONE Gas, Inc. (NYSE:OGS) is a regulated natural gas distribution utility in the United States. The company operates through a single segment, regulated public utilities, and delivers natural gas to residential, commercial, and transportation customers.