Core Viewpoint - Investors in the Utility - Gas Distribution sector should consider Spire (SR) and Atmos Energy (ATO) as potential investment opportunities, with a focus on their valuation metrics to determine which stock offers better value [1] Valuation Metrics - Both Spire and Atmos Energy currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - Key valuation metrics for Spire include a forward P/E ratio of 16.62 and a PEG ratio of 2.44, while Atmos Energy has a forward P/E of 22.54 and a PEG ratio of 3.08 [5] - Spire's P/B ratio stands at 1.53, compared to Atmos Energy's P/B ratio of 2.11, contributing to Spire's Value grade of B and Atmos Energy's Value grade of D [6]

Company Overview - Spire Inc. (NYSE: SR) is a natural gas company providing energy services to residential, commercial, and industrial customers [1][6] - The company's market capitalization is approximately $4.66 billion, with a trading volume of 257,645 shares, positioning it as a significant player in the utilities sector [5] Stock Performance - As of September 25, 2025, SR was trading at $79.20, which is approximately -4.03% below the price target of $76 set by David Arcaro from Morgan Stanley [1][6] - Currently, SR is priced at $79.03, reflecting a slight increase of 0.30% for the day, with a trading range of $78.47 to $79.21 [2] - Over the past year, SR has experienced a high of $79.81 and a low of $61.56, indicating some volatility in its price movements [2] Economic Context - Despite a recent federal funds rate cut, there are concerns about potential recession indicators, particularly in the housing and labor markets [3] - However, SR continues to show resilience, with stable performance in the utilities sector amidst economic uncertainty [6] Investment Strategy - Investors are advised to consider shifting towards more defensive equity investments in sectors like utilities, consumer staples, and healthcare due to recession concerns [4][6]

Core Viewpoint - Investors are closely monitoring recession indicators following the first federal funds rate cut of the year, with a struggling housing market and labor market warnings suggesting a potential recession, despite rising stock prices [1] Group 1: Church & Dwight (CHD) - Church & Dwight Co. Inc. is recognized for its essential household and personal care brands, which may provide insulation from a potential recession due to their perceived necessity [2][3] - The company has a long history of dividend increases, with a yield of 1.36% and a conservative payout ratio of 55.66%, making it a potential source of stability during volatile periods [3] - CHD shares have declined over 10% year-to-date, attributed to tariff impacts, but analysts predict a recovery with an upside potential of over 14% [4] Group 2: Spire Inc. (SR) - Spire Inc. is a regional natural gas utility firm expanding through the acquisition of Piedmont Natural Gas, which is expected to add over 200,000 customers and contribute to an estimated 8% bottom-line increase in the coming year [5] - The company maintains low operational costs, growing by less than 1% year-to-date, which provides protection against inflation, alongside a dividend yield of 4.08% and a payout ratio of 67.12% [6] Group 3: Chemed Corp. (CHE) - Chemed Corp. operates in home services and healthcare, with its brands Roto-Rooter and Vitas Healthcare providing recession-resistant services [8] - The company faces challenges such as hospice care caps and rising insurance costs, which have pressured CHE shares to their lowest P/E level in over four years, presenting a potential buying opportunity for long-term strength [9]

Market Conditions - The investing landscape has become challenging for income-oriented investors due to high uncertainty and volatility in the stock market [1] - Factors contributing to this volatility include an uncertain outlook related to tariffs and the ongoing war in Ukraine, alongside a rebound in inflation [1] Analyst Background - The author is a chemical engineer with a Master's in Food Technology and Economics, and a MENSA member [1] - The author has written multiple books on investing and mathematics, emphasizing the importance of mental calculations for making immediate investment decisions [1] - The author applies both fundamental and technical analysis in investing, primarily using options as a tool for investing and trading [1] Financial Independence - The author achieved financial independence at the age of 45, indicating a successful investment strategy [1] - The author follows Warren Buffett's principle of focusing on financial statements for investment insights [1]

Company Overview - Spire Inc. is a natural gas company serving over 1.7 million customers in the United States, founded in 2000 and headquartered in St. Louis, MO [11] - The company generates more than 90% of its profits from regulated operations, providing a clear outlook on future earnings [11] - Spire operates over 60,000 miles of pipelines and has businesses in Gas Utility, Gas Marketing, and Midstream segments [11] Investment Insights - Spire has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a moderate investment potential [12] - The Momentum Style Score for Spire is B, with shares increasing by 1.3% over the past four weeks [12] - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.01 to $4.51 per share [12] - Spire has an average earnings surprise of +24.7%, suggesting a positive trend in earnings performance [12] Recommendation - With a solid Zacks Rank and strong Momentum and VGM Style Scores, Spire is recommended for investors' consideration [13]

Group 1 - The company focuses on timely dividend-paying stocks to assist investors in wealth accumulation [1] - The author has extensive experience as a Registered Investment Advisor and has published multiple investment-related books [1] - The company aims to provide a steady pace of financial growth for its clients through various investment strategies [1] Group 2 - The author has a background in corporate management, having spent 15 years at Georgia-Pacific Corp before starting their own ventures [1] - The company has a history of involvement in small business advisory roles, including an appointment by President Ronald Reagan [1] - The investment newsletter emphasizes the importance of personal investment planning and stock market analysis [1]

Group 1 - The company focuses on timely dividend-paying stocks to assist investors in wealth accumulation [1] - The author has extensive experience as a Registered Investment Advisor and has published multiple investment-related books [1] - The company aims to provide a steady pace of financial growth for its clients through various investment strategies [1] Group 2 - The author has a background in corporate management, having worked at Georgia-Pacific Corp for 15 years before starting their own ventures [1] - The company has a history of involvement in small business advisory, having been appointed to a national council overseeing the Small Business Administration [1]

Core Viewpoint - Spire Global Inc. is a small firm with a market capitalization of $273 million, recently gaining attention due to new government contracts and a growing backlog, despite facing challenges in achieving positive operating cash flow and shaky revenue forecasts [1][2]. Group 1: Positive Developments - Spire sold its maritime division for over $233 million, which helped reduce debt and strengthen its balance sheet for future growth [2][3]. - The company secured an eight-figure, five-year deal with an unnamed commercial firm in space services, indicating its ability to attract repeat customers and generate recurring revenue [4]. - Spire launched 27 new satellites in the first half of 2025, which is expected to enhance revenue performance, aiming for up to $95 million in sales [5]. - As of mid-year, Spire had over $117 million in cash and equivalent reserves, providing crucial time and flexibility for business development and strategic investments [6]. Group 2: Challenges and Concerns - Spire's preliminary financial report indicated a reduction in revenue guidance by half a million dollars, with expected quarterly revenue now between $18 million and $19 million, complicating growth prospects [7][8]. - The company received a non-compliance notice from the NYSE due to delays in reporting second-quarter results, contributing to a nearly 11% drop in shares over the past month and a year-to-date decline of over 39% [9]. - High fixed costs associated with maintaining its satellite constellation pose significant financial challenges, which need to be addressed for broader investor appeal [10].

Core Insights - Spire Inc. (SR) is enhancing its operations through significant investments, which are aimed at meeting the rising demand from an expanding consumer base. The company's technological advancements are improving operational efficiency, reducing costs, and enhancing service quality [1] Investment Plans - Spire plans to invest $875 million in fiscal 2025, an increase from the previous guidance of $840 million. This capital plan focuses on reliability, new service connections, and the completion of advanced meter installations in Spire Missouri. Over the next decade, Spire projects a total of $7.4 billion in capital investments, expecting to support a long-term rate base growth of 7-8% [2][8] Technological Advancements - The company is advancing the deployment of ultrasonic meters across its utilities to enhance customer experience. In fiscal 2024, Spire installed over 350,000 advanced meters, bringing the total number of customers benefiting from this technology to 850,000 [3] Expansion Strategy - Spire is expanding its customer base through acquisitions, which allows for an extended geographic reach and improved infrastructure. In July 2025, Spire signed an agreement to acquire Piedmont Natural Gas's Tennessee local distribution business for $2.48 billion, adding nearly 3,800 miles of distribution and transmission pipelines and expanding into the Nashville metro area, one of the fastest-growing regions in the U.S. [4][8] Stock Performance - Over the past year, Spire's shares have increased by 17.6%, outperforming the industry average rise of 9.2% [7]

Group 1 - Spire Global operates its own satellite constellations and utilizes a subscription-based model for its services [1] - The company has a focus on the intelligence space, indicating a niche market within the broader technology sector [1] Group 2 - The article reflects on the author's extensive experience in the technology, media, and telecommunications (TMT) sectors, emphasizing the importance of momentum in investment strategies [1]