Here's Why You Should Add Atmos Energy Stock to Your Portfolio Now

Atmos Energy Corporation’s ATO strategic 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 HistoryThe Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased 0.3% to $7.18 in the past 90 days.The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $4.92 billion, implying a year-over-year increase of 18.2%.The company’s long-term (three-to-five-year) earnings growth rate is 7.1%. It delivered an average earnings surprise of 3.4% in the trailing four quarters.Debt Position of ATOCurrently, ATO’s total debt to capital is 39.97%, better than the industry’s average of 50.49%.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 HistoryATO 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. Its new quarterly dividend is 87 cents per share. This resulted 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 the approval of the board of directors. Its current dividend yield is 2.38%, better than the Zacks S&P 500 composite’s 1.18%.ATO’s Systematic InvestmentsThe company’s systematic capital expenditure plan to enhance the safety and reliability of its natural gas pipelines helps serve its expanding customer base more efficiently.  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 Price PerformanceIn the past six months, Atmos Energy’s shares have risen 13.2% compared with the industry’s 7.5% growth.    Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are Southwest Gas SWX, New Jersey Resources NJR and CenterPoint Energy CNP, 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 fourth-quarter EPS indicates an increase of 1.8% from the prior-year registered figure.  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.  CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 8%. Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Southwest Gas Corporation (SWX): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks