We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Atmos Energy Stock to Your Portfolio Right Now
Read MoreHide Full Article
Atmos Energy Corporation’s (ATO - Free Report) long-term investment plans should further increase the safety and reliability of its natural gas pipelines and distribution and transportation systems. Solid contributions from residential customers help boost the company’s top line. Given its growth opportunities, ATO makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
ATO’s Growth Projections & Surprise History
The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.7% to $6.78 in the past 90 days.
The Zacks Consensus Estimate for fiscal 2024 sales is pinned at $4.45 billion, implying a year-over-year increase of 4.1%.
The company’s long-term (three to five-year) earnings growth rate is 7%. It delivered an average earnings surprise of 4.8% in the trailing four quarters.
Debt Position of ATO
Currently, ATO’s total debt to capital is 39.26%, better than the industry’s average of 49.59%.
The time-to-interest earned ratio at the end of the third quarter of fiscal 2024 was 7.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATO’s Liquidity Position
Atmos Energy’s current ratio is 1.74, better than the industry’s average of 0.57. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities (if necessary).
ATO’s Dividend History
ATO has been increasing shareholder value via regular dividend payments. It has increased its annual dividend for 40 consecutive years. Currently, its quarterly dividend is 80.5 cents per share. The dividend for fiscal 2024 is $3.22 per share, indicating an 8.8% increase from the prior-year level.
The company aims to increase its dividend by 6-8% per year through fiscal 2026, subject to the approval of the board of directors. Atmos Energy’s current dividend yield is 2.35%, better than the Zacks S&P 500 composite’s 1.24%.
ATO’s Systematic Investments
Atmos Energy’s systematic capital expenditure plan toward the enhancement of the safety and reliability of its natural gas pipelines helps it serve its expanding customer base more efficiently.
The company expects $3.1 billion in capital expenditures during fiscal 2024. It also plans to invest $17 billion during fiscal 2023-2028 to strengthen its operations. The planned investment should result in 7-8% annual earnings growth during the aforementioned period.
ATO Stock Price Performance
In the past three months, Atmos Energy’s shares have risen 17.2% compared with the industry’s 11.6% growth.
The Zacks Consensus Estimate for UGI’s fiscal 2024 EPS indicates a year-over-year increase of 3.2%. The company delivered an average earnings surprise of 99.1% in the trailing four quarters.
The Zacks Consensus Estimate for NWN’s 2024 sales indicates a year-over-year increase of 0.7%. The company delivered an average earnings surprise of 8.7% in the trailing four quarters.
The Zacks Consensus Estimate for CLNE’s 2024 loss per share has decreased 33.3% to 8 cents in the past 60 days. The company delivered an average earnings surprise of 60.4% in the trailing four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Add Atmos Energy Stock to Your Portfolio Right Now
Atmos Energy Corporation’s (ATO - Free Report) long-term investment plans should further increase the safety and reliability of its natural gas pipelines and distribution and transportation systems. Solid contributions from residential customers help boost the company’s top line. Given its growth opportunities, ATO makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
ATO’s Growth Projections & Surprise History
The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased 0.7% to $6.78 in the past 90 days.
The Zacks Consensus Estimate for fiscal 2024 sales is pinned at $4.45 billion, implying a year-over-year increase of 4.1%.
The company’s long-term (three to five-year) earnings growth rate is 7%. It delivered an average earnings surprise of 4.8% in the trailing four quarters.
Debt Position of ATO
Currently, ATO’s total debt to capital is 39.26%, better than the industry’s average of 49.59%.
The time-to-interest earned ratio at the end of the third quarter of fiscal 2024 was 7.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATO’s Liquidity Position
Atmos Energy’s current ratio is 1.74, better than the industry’s average of 0.57. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities (if necessary).
ATO’s Dividend History
ATO has been increasing shareholder value via regular dividend payments. It has increased its annual dividend for 40 consecutive years. Currently, its quarterly dividend is 80.5 cents per share. The dividend for fiscal 2024 is $3.22 per share, indicating an 8.8% increase from the prior-year level.
The company aims to increase its dividend by 6-8% per year through fiscal 2026, subject to the approval of the board of directors. Atmos Energy’s current dividend yield is 2.35%, better than the Zacks S&P 500 composite’s 1.24%.
ATO’s Systematic Investments
Atmos Energy’s systematic capital expenditure plan toward the enhancement of the safety and reliability of its natural gas pipelines helps it serve its expanding customer base more efficiently.
The company expects $3.1 billion in capital expenditures during fiscal 2024. It also plans to invest $17 billion during fiscal 2023-2028 to strengthen its operations. The planned investment should result in 7-8% annual earnings growth during the aforementioned period.
ATO Stock Price Performance
In the past three months, Atmos Energy’s shares have risen 17.2% compared with the industry’s 11.6% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are UGI Corporation (UGI - Free Report) , Northwest Natural (NWN - Free Report) and Clean Energy Fuels (CLNE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for UGI’s fiscal 2024 EPS indicates a year-over-year increase of 3.2%. The company delivered an average earnings surprise of 99.1% in the trailing four quarters.
The Zacks Consensus Estimate for NWN’s 2024 sales indicates a year-over-year increase of 0.7%. The company delivered an average earnings surprise of 8.7% in the trailing four quarters.
The Zacks Consensus Estimate for CLNE’s 2024 loss per share has decreased 33.3% to 8 cents in the past 60 days. The company delivered an average earnings surprise of 60.4% in the trailing four quarters.