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Atmos Energy Corp

Atmos Energy Corp

ATO
$167.56USD↓-0.92%-1.56 today

MARKET CAP

28.3B

P/E (TTM)

20.6x

FWD P/E

—

DAY RANGE

$167 – $170

52W RANGE

$160
$193

AI Summary

Stalk
Sell NowMedium

ATO remains in a Stage 4 declining phase with price below all major moving averages and clear downward alignment, reinforcing a bearish medium-term bias. Short-term conditions favor selling into any bounce at the declining 9-day and 20-day EMAs. Under the Stable strategy’s conservative, range-based approach, execution now on rallies into resistance aligns with structural weakness. Oversold context carries risk of short-lived rebounds but does not offset the dominant downtrend.

  • ↑Q3 2026 EPS $1.43 beats $1.35 estimate, up from $1.16 Y/Y.
  • ↑Pursuing $26 billion capex plan aiming to double rate base by 2030.
  • ↓Q3 2026 revenue $879.1 M misses $900.8 M forecast, down Y/Y.
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The case for & against

Bull & Bear analysis

Bullish

Atmos Energy Corporation (NYSE: ATO) is a leading energy utility company primarily engaged in the distribution and transmission of natural gas to more than 3 million customers across several states in the United States, primarily in Texas. Atmos Energy operates in a stable, regulated environment, which supports consistent revenue generation. Positioned within the utility sector, the company's significant capital investment in infrastructure aligns with the broader theme of energy efficiency and modernization of energy delivery systems.

Bull says

  • ↑Q3 2026 EPS $1.43 beats $1.35 estimate, up from $1.16 Y/Y.
  • ↑Pursuing $26 billion capex plan aiming to double rate base by 2030.
  • ↑Constructive regulation recovers ~90% of capex into earnings within six months.
  • ↑Dividend $1.00/share yields 2.4%, supported by strong earnings yield.
  • ↑Favorable factor profile: high earnings yield, positive book-to-price, low volatility.
  • ↑2026 EPS guidance reaffirmed at $8.40–$8.50 per share.

Bear says

  • ↓Q3 2026 revenue $879.1 M misses $900.8 M forecast, down Y/Y.
  • ↓Negative growth metrics indicate weak top-line expansion amidst rising costs.
  • ↓Interest rate sensitivity reduces utility appeal as yields climb.
  • ↓Profitability under pressure: margin compression risks amid higher O&M costs.
  • ↓Analyst revisions trending downward; institutional interest waning per short-interest data.
  • ↓Emerging renewables pose disruption risk to traditional gas distribution.

Investment themes with ATO

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Quality↑ +0.54%

Companies with strong fundamentals and stability

NVDA · AAPL · MSFT

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 02-06-2025neutral

Transcript signals

Bull points

  • fiscal 2024 first quarter earnings per share was $2.08, which represents an 8.9% increase over the $1.91 per share reported in the prior year quarter.
  • Consolidated operating income increased to $399 million or 24% in the first quarter, driven by several factors including rate increases in both segments totaling $84 million, and residential commercial customer growth combined with higher industrial loads.
  • $19 million, primarily driven by lower bad debt expense.

Bear points

  • we did not have any short-term debt outstanding, but any significant changes or unexpected needs could put pressure on our liquidity in the future.
  • I want to comment on an incident that the National Transportation Safety Board is investigating. The incident occurred at a Jackson, Mississippi residents on January 24 and resulted in one fatality.
  • No, there’s nothing contentious or unusual. And as a reminder, these general rate cases are being filed because those jurisdictions are under our grit mechanism.
Read full transcript analysis ›