Energy

Cheap natural gas to boost these stocks: Pro

Gas utility stock picks
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Gas utility stock picks

Natural gas continues to struggle, but some companies in the space should benefit if prices stay low, one analyst said Tuesday.

The commodity has fallen about 35 percent this year. Futures climbed Tuesday, a day after touching their lowest level since 2012.

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If prices do not recover, consumers could not only pay less for energy, but also find returns in natural gas utility stocks, said Spencer Joyce, an analyst at Hilliard Lyons.

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Joyce sees strength in Atmos Energy if demand for natural gas delivery rises amid lower prices. The company distributes the commodity in eight states, and its shares have climbed 10 percent this year.

He pointed to another utility, Laclede Group, that "should be able to expand operations when clients' bills go down." Joyce also likes WGL Holdings, which provides natural gas services in the Washington D.C. area.