Dallas, Texas-based Atmos Energy Corporation (ATO) distributes natural gas. With a market cap of $20.6 billion, the company provides natural gas marketing and procurement services to large customers, as well as manages storage and pipeline assets.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ATO perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regulated gas utilities industry. ATO’s financial strength stems from operational efficiency, strategic rate management, and infrastructure investments, positioning it for continued financial success and customer service excellence.
ATO shares have slipped 1.6% from their 52-week high of $138.78, achieved on Sep. 17. Over the past three months, ATO stock has gained 17.2%, outperforming the Utilities Select Sector SPDR Fund’s (XLU) 16.1% gains during the same time frame.
However, in the longer term, shares of ATO rose 17.8% on a YTD basis and climbed 23.6% over the past 52 weeks, underperforming XLU’s YTD gains of 26.6% and 26.9% returns over the last year.
Despite weak price momentum in the long term, ATO has been trading above its 50-day and 200-day moving averages since early July, indicating a bullish trend.
On Aug. 7, ATO shares closed up marginally after reporting its Q3 results. Its EPS increased 14.9% year over year to $1.08. The company’s revenue stood at $701.5 million, up 5.9% year over year. ATO expects full-year EPS to be between $6.70 and $6.80.
In the competitive arena of regulated gas utility stocks, Southwest Gas Holdings, Inc. (SWX) has taken the lead over ATO, returning 18.4% on a YTD basis. However, SWX shares lagged behind the stock with 20.2% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on ATO’s prospects. The stock has a consensus “Moderate Buy” rating from the 10 analysts covering it. While ATO currently trades above its mean price target of $134.62, the Street-high price target of $145 suggests an upside potential of 6.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
