We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Here's Why You Should Add Atmos Energy Stock to Your Portfolio Now
Read MoreHide Full Article
Atmos Energy Corporation (ATO - Free Report) continues to benefit from rising demand for natural gas, courtesy of an expanding customer base. Atmos Energy's long-term investment plan should further increase the reliability of its natural gas pipelines and boost its performance. 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 2025 earnings per share (EPS) has increased 0.1% to $7.18 in the past 90 days.
The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $4.85 billion, implying a year-over-year increase of 16.5%.
The company’s long-term (three-to-five-year) earnings growth rate is 7.1%. It delivered an average earnings surprise of 3.9% in the trailing four quarters.
Debt Position of ATO
Currently, ATO’s total debt to capital is 39.97%, better than the industry’s average of 50.04%.
The time-to-interest earned ratio at the end of the fiscal first quarter of 2025 was 7.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATO’s Dividend History
ATO has been increasing shareholder value via regular dividend payments. In November 2024, the company’s board declared an 8.8% increase in the annual dividend rate. Currently, its quarterly dividend is 87 cents per share. This results in an annualized dividend of $3.48 per share compared with the previous year's $3.22. The company has raised its annual dividend for 41 consecutive years and paid quarterly dividends for 165 years.
Atmos Energy aims to increase its dividend by 6-8% per year through fiscal 2026, subject to approval by the board of directors. Its current dividend yield is 2.31%, better than the Zacks S&P 500 Composite’s 1.29%.
ATO’s Focus on Systematic Investments
Atmos Energy has a sturdy capital expenditure plan, helping the company to increase the safety and reliability of its natural gas pipelines. A major portion of its planned capital expenditure is utilized to improve the safety and reliability of distribution and transportation systems.
ATO expects $3.7 billion in capital expenditures during fiscal 2025 and plans to invest $24 billion during fiscal 2025-2029 to strengthen its operations. The planned investment should result in 6-8% annual earnings growth during the same period.
ATO’s Stock Price Performance
In the past three months, Atmos Energy’s shares have risen 7.8% against the industry’s 3.8% decline.
SWX’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for 2025 EPS is pinned at $3.70, which indicates year-over-year growth of 17.1%.
The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates year-over-year growth of 7.5%. The Zacks Consensus Estimate for NJR’s fiscal 2025 sales indicates an increase of 2.5% from the previous year’s registered figure.
UGI’s long-term earnings growth rate is 4.8%. The company delivered an average earnings surprise of 74.8% in the last four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add Atmos Energy Stock to Your Portfolio Now
Atmos Energy Corporation (ATO - Free Report) continues to benefit from rising demand for natural gas, courtesy of an expanding customer base. Atmos Energy's long-term investment plan should further increase the reliability of its natural gas pipelines and boost its performance. 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 2025 earnings per share (EPS) has increased 0.1% to $7.18 in the past 90 days.
The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $4.85 billion, implying a year-over-year increase of 16.5%.
The company’s long-term (three-to-five-year) earnings growth rate is 7.1%. It delivered an average earnings surprise of 3.9% in the trailing four quarters.
Debt Position of ATO
Currently, ATO’s total debt to capital is 39.97%, better than the industry’s average of 50.04%.
The time-to-interest earned ratio at the end of the fiscal first quarter of 2025 was 7.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ATO’s Dividend History
ATO has been increasing shareholder value via regular dividend payments. In November 2024, the company’s board declared an 8.8% increase in the annual dividend rate. Currently, its quarterly dividend is 87 cents per share. This results in an annualized dividend of $3.48 per share compared with the previous year's $3.22. The company has raised its annual dividend for 41 consecutive years and paid quarterly dividends for 165 years.
Atmos Energy aims to increase its dividend by 6-8% per year through fiscal 2026, subject to approval by the board of directors. Its current dividend yield is 2.31%, better than the Zacks S&P 500 Composite’s 1.29%.
ATO’s Focus on Systematic Investments
Atmos Energy has a sturdy capital expenditure plan, helping the company to increase the safety and reliability of its natural gas pipelines. A major portion of its planned capital expenditure is utilized to improve the safety and reliability of distribution and transportation systems.
ATO expects $3.7 billion in capital expenditures during fiscal 2025 and plans to invest $24 billion during fiscal 2025-2029 to strengthen its operations. The planned investment should result in 6-8% annual earnings growth during the same period.
ATO’s Stock Price Performance
In the past three months, Atmos Energy’s shares have risen 7.8% against the industry’s 3.8% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Southwest Gas (SWX - Free Report) , New Jersey Resources (NJR - Free Report) and UGI Corporation (UGI - Free Report) , each presently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SWX’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for 2025 EPS is pinned at $3.70, which indicates year-over-year growth of 17.1%.
The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates year-over-year growth of 7.5%. The Zacks Consensus Estimate for NJR’s fiscal 2025 sales indicates an increase of 2.5% from the previous year’s registered figure.
UGI’s long-term earnings growth rate is 4.8%. The company delivered an average earnings surprise of 74.8% in the last four quarters.