Why Atmos Energy (ATO) is a Top Momentum Stock for the Long-Term
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.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
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 3.3 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 73,000 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 Momentum Style Score of B and VGM Score of B. Shares are up 0.8% over the past one week and up 4.5% over the past four weeks. ATO has lost 5.2% in the last one-year period as well. Looking at trading volume, an average of 1,019,034.88 shares exchanged hands over the last 20 trading days.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for ATO, while the Zacks Consensus Estimate has increased $0.03 to $6.49 per share. ATO also boasts an average earnings surprise of 1.1%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding ATO to their portfolios.
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Atmos Energy Corporation (ATO) : Free Stock Analysis Report
