Dallas, Texas-based Atmos Energy Corporation (ATO) distributes natural gas. With a market cap of $23.8 billion, the company provides natural gas marketing and procurement services to large customers, as well as manages storage and pipeline assets.
Shares of this leading natural gas utility have outperformed the broader market over the past year. ATO has gained 33.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.6%. In 2025, ATO stock is up 7.9%, surpassing the SPX’s 1.7% rise on a YTD basis.
Zooming in further, ATO’s outperformance is also apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 28.9% over the past year. Moreover, ATO’s gains on a YTD basis outshine the ETF’s 5.5% returns over the same time frame.
On Feb. 4, ATO shares closed down marginally after reporting its Q1 results. Its EPS of $2.23 beat Wall Street expectations of $2.20. ATO expects full-year EPS to be between $7.05 and $7.25.
For the current fiscal year, ending in September, analysts expect ATO’s EPS to grow 5.1% to $7.18 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 12 analysts covering ATO stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than three months ago, with five analysts suggesting a “Strong Buy.”
On Feb. 20, Morgan Stanley (MS) analyst David Arcaro maintained a “Buy” rating on ATO with a price target of $142.
The mean price target of $153.05 represents a 1.9% premium to ATO’s current price levels. The Street-high price target of $165 suggests an upside potential of 9.8%.
