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

Atmos Energy Corporation ATO 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 HistoryThe 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 ATOCurrently, 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 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. 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 InvestmentsAtmos 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 PerformanceIn the past three months, Atmos Energy’s shares have risen 7.8% against the industry’s 3.8% decline.    Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Southwest Gas SWX, New Jersey Resources NJR and UGI Corporation UGI, 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. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Southwest Gas Corporation (SWX): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report UGI Corporation (UGI): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks