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.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Is Atmos Energy Stock Underperforming the S&P 500?
Investors often compare the performance of individual stocks to that of the broader market to gauge how well their investments are doing. One such comparison can be made between Atmos Energy stock and the S&P 500 index.
Atmos Energy Corporation (NYSE: ATO) is a natural gas utility company that provides natural gas distribution services to over three million customers in eight states. The company’s stock performance is influenced by various factors, including changes in natural gas prices, regulatory approvals, and overall market conditions.
On the other hand, the S&P 500 index is a benchmark index that tracks the performance of 500 of the largest publicly traded companies in the United States. It is often used as a measure of the overall health of the stock market.
As of [current date], Atmos Energy stock has [increased/decreased] by [percentage] year-to-date, while the S&P 500 index has [increased/decreased] by [percentage] over the same period. This comparison indicates that Atmos Energy stock is [outperforming/underperforming] the broader market.
Investors should consider various factors, such as the company’s financial performance, industry trends, and market conditions, before making any investment decisions. It is also important to note that past performance is not indicative of future results.
In conclusion, while Atmos Energy stock may be [underperforming/overperforming] the S&P 500 index at present, investors should conduct their own research and consult with financial advisors before making any investment decisions.
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