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Here's Why You Should Invest in Atmos Energy (ATO) Stock Now

Zacks Equity Research

Earnings estimates for Atmos Energy Corporation ATO for fiscal 2019 and fiscal 2020 are likely to improve 8% and 6.76% on a year-over-year basis to $4.32 and $4.61 per share, respectively. Revenue estimates for fiscal 2019 and fiscal 2020 are likely to increase 53.77% and 8.31% on a year-over-year basis to $3.42 billion and $3.71 billion, respectively.

Let’s focus on the factors that make Atmos Energyan appropriate investment option at the moment.

Zacks Rank & VGM Score

Atmos Energycurrently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Earnings Surprise History & Long-Term Growth

The company’s average four-quarter positive earnings surprise is 4.26%.

The company’s long-term (three to five years) earnings growth is pegged at 6.50%.

Price Movement

In the past 12 months, Atmos Energy’s shares have gained 18.8% compared with the industry’s rise of 8.4%.

Dividend Growth & Dividend Yield

On Nov 7, 2018, the board of directors approved 8.2% increase in annual dividend, marking the 35th consecutive year of dividend hike that indicatesconsistent performance.

Currently, the company has a dividend yield of 1.99% compared with the Zacks S&P 500 composite’s 1.94%.

Other Key Picks

Some other top-ranked stocks from the same industry are ONEOK, Inc OKE, ONE Gas, Inc OGS and Northwest Natural Gas Company NWN, each holding a Zacks Rank of 2.

ONEOK pulled off an average positive earnings surprise of 3.17% in the last four quarters. The company’s long-term earnings growth is pegged at 11.30%.

ONE Gas pulled off an average positive earnings surprise of 8.29% in the last four quarters. The company’s long-term earnings growth is pegged at 5.90%.

Earnings Estimates for 2019 for Northwest Natural Gas moved up 4.4% to $2.37 per share in the past 60 days. The company’s long-term earnings growth is pegged at 4.50%

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Atmos Energy Corporation (ATO) : Free Stock Analysis Report
 
Northwest Natural Gas Company (NWN) : Free Stock Analysis Report
 
ONE Gas, Inc. (OGS) : Free Stock Analysis Report
 
ONEOK, Inc. (OKE) : Free Stock Analysis Report
 
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