Atmos Energy Corporation (ATO), founded in 1906 and headquartered in Dallas, Texas, is a leading natural gas utility company in the United States. With a market cap of $21.7 billion, ATO delivers safe, reliable, and affordable natural gas services while focusing on sustainability and infrastructure modernization to support long-term growth and community well-being.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and Atmos Energy is a prominent player in this category. The company’s strong market position and commitment to innovation in energy delivery and infrastructure modernization establish it as a utility sector leader.
Atmos Energy’s shares are currently trading 8.8% below its 52-week high of $152.65, reached on Nov. 27. The stock has gained 1.4% over the three months, underperforming the broader S&P 500 Index’s ($SPX) 4.5% gains during the same time frame.
Over the longer term, ATO stock has rallied 18.2% over the past six months, outperforming SPX’s return of 10.5%. Yet, over the past 52 weeks, ATO rallied 21.4%, underperforming SPX's growth of 26.6% during the same period.
The stock has been trading above its 50-day moving average since July but dipping below that mark since early December, signaling a mixed trend. It has remained above its 200-day moving average since July.
Atmos Energy's shares climbed 1.8% following the release of its fiscal 2024 earnings on Nov. 6. The company reported total operating revenues of $4.2 billion, while earnings per share came in at $6.83, marking a 12% growth compared to the prior year.
Looking ahead, Atmos provided fiscal 2025 guidance, projecting earnings per share between $7.05 and $7.25, indicating continued strong performance. The company also outlined a capital expenditure plan of approximately $3.7 billion for the year, underscoring its commitment to infrastructure investments and growth initiatives.
ATO's competitor, Southwest Gas Holdings, Inc. (SWX), has underperformed in comparison. SWX's shares have gained 8.1% over the past 52 weeks.
Despite ATO's underperformance relative to the broader sector, analysts remain cautiously optimistic about the stock's prospects. Of the 12 analysts covering it, the consensus rating is “Moderate Buy,” with a mean price target of $151.65, indicating a potential upside of 8.9% from its current level.
