Atmos Energy: A Steady Player in the Natural Gas Market
Atmos Energy Corporation (ATO), which has been in operation since 1906 and is based in Dallas, Texas, stands as a top natural gas utility provider in the United States. With a current market cap of $21.7 billion, ATO is dedicated to delivering safe, reliable, and affordable natural gas services while also emphasizing sustainability and modernizing its infrastructure to foster long-term growth and community support.
Classified as a “large-cap stock,” companies valued at $10 billion or more find themselves in a robust category, and Atmos Energy stands out as a significant player. Its strong market presence and focus on energy delivery innovation position it as a leader in the utility sector.
Recent Stock Performance
Currently, Atmos Energy’s shares trade 8.8% lower than their 52-week high of $152.65, achieved on November 27. In the last three months, the stock has only gained 1.4%, which is less than the broader S&P 500 Index’s ($SPX) 4.5% gains during that period.
Looking at a longer time frame, ATO stock has surged 18.2% over the past six months, surpassing the S&P 500’s return of 10.5%. However, ATO’s 52-week growth of 21.4% has not kept pace with SPX’s increase of 26.6% during the same span.
The stock has consistently traded above its 50-day moving average since July, although it has slipped below this average since early December, indicating a mixed performance. It has remained above its 200-day moving average since July, showcasing some consistency.
Strong Earnings and Future Guidance
On November 6, shares of Atmos Energy increased by 1.8% after the company disclosed its fiscal 2024 earnings. ATO reported total operating revenues of $4.2 billion with earnings per share at $6.83, reflecting a 12% increase from the previous year.
Looking ahead, Atmos has given guidance for fiscal 2025, estimating earnings per share to fall between $7.05 and $7.25, suggesting continued strong performance. The company also plans to invest about $3.7 billion in capital expenditures for the year, highlighting its commitment to infrastructure growth and development.
Comparative Analysis and Analyst Insights
In comparison, ATO’s competitor, Southwest Gas Holdings, Inc. (SWX), has seen less promising results, with SWX shares up only 8.1% over the past year.
While Atmos Energy has underperformed relative to the broader utility sector, analysts maintain a cautious optimism for the stock. Among the 12 analysts monitoring ATO, the consensus rating is “Moderate Buy,” with an average price target set at $151.65, indicating a potential upside of 8.9% from its current price.
On the date of publication, Rashmi Kumari 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
