Here's Why Atmos Energy (ATO) is a Strong Growth Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Atmos Energy (ATO)
Founded in 1906, Atmos Energy Corporation, along with its subsidiaries, is engaged in regulated natural gas distribution and storage business. The company serves nearly 3.4 million customers in more than 1,400 communities in eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. The company operates more than 72,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines. Atmos Energy’s pipelines are connected to 37 different pipelines across eight states, thereby providing supplier diversity.
ATO is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 8.2% year-over-year for the current fiscal year, with sales growth of 13.9%.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.03 to $6.06 per share. ATO also boasts an average earnings surprise of 2.4%.
Atmos Energy is also cash rich. The company has generated cash flow growth of 13.2%, and is expected to report cash flow expansion of 14% in 2023.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, ATO should be on investors' short lists.
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Atmos Energy Corporation (ATO) : Free Stock Analysis Report
