Reasons to Add Atmos Energy Stock to Your Portfolio Now

Atmos Energy Corporation’s ATO long-term investment plans should further increase the safety and reliability of its natural gas pipelines along with the company’s 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 us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.ATO Stock’s Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased 0.3% to $7.17 in the past 60 days.The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $5.07 billion, implying a year-over-year increase of 21.61%.The company’s long-term (three to five-year) earnings growth rate is 7.01%. It delivered an average earnings surprise of 3.39% in the trailing four quarters.ATO’s SolvencyCurrently, ATO’s total debt to capital is 39.27%, better than the industry’s average of 49.52%. This ratio determines the proportion of a business’s total capital that is financed using debt. A lower ratio implies that the company can pay for capital without relying on debt.Dividend History of ATO StockATO has been increasing its shareholder value via regular dividend payments. The current annual dividend of the company is $3.48 per share.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 2.51%, better than the Zacks S&P 500 composite’s 1.57%.ATO’s Systematic InvestmentsThe company’s systematic capital expenditure plan toward the enhancement of the safety and reliability of its natural gas pipelines helps serve ATO’s expanding customer base more efficiently. ATO expects $3.7 billion in capital expenditures during fiscal 2025. The company also 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 aforementioned period.ATO’s Price PerformanceIn the past six months, Atmos Energy’s shares have risen 23.1% compared with the industry’s 21% growth.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are Vistra Corp. VST, New Jersey Resources NJR and NiSource NI. VST and NJR each sports a Zacks Rank #1 (Strong Buy) and NI holds a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.VST’s long-term (three to five years) earnings growth rate is 17.4%. The Zacks Consensus Estimate for 2025 earnings per share indicates an increase of 7.7% in the past 60 days.  The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates an increase of 7.3% in the past 60 days. The Zacks Consensus Estimate for NJR’s fiscal 2025 sales indicates an increase of 2.52% from the previous year’s registered figure.  NI’s long-term earnings growth rate is 7.45%. The Zacks Consensus Estimate for 2025 EPS indicates an increase of 0.5% in the past 60 days. NI reported an average surprise of 22.43% in the last four quarters. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 NiSource, Inc (NI): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis Report Vistra Corp. (VST): 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