Here's Why ATO Stock Deserves a Spot in Your Portfolio Right Now

Atmos Energy Corporation ATO has projected a clear pathway for sustained growth, supported by rising natural gas demand and customer base growth. The company focuses on long-term investments to ensure the reliability of its natural gas pipelines while simultaneously benefiting from industrial customer additions and constructive rate outcomes.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick in the Zacks Utility- Gas Distribution industry at presentATO’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) implies an increase of 1.8% to $8.02 in the past 60 days. The Zacks Consensus Estimate for fiscal 2026 revenues is currently pegged at $5.81 billion, suggesting a year-over-year improvement of 23.5%.ATO’s long-term (three to five years) earnings growth rate is 7.98%. It delivered an average earnings surprise of 2.6% in the last four quarters.ATO’s Dividend HistoryAtmos Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is $1.00 per share, resulting in an annualized dividend of $4.00. ATO’s current dividend yield is 2.27%, better than the Zacks S&P 500 composite's average of 1.07%.ATO’s Investment FocusAtmos Energy has outlined a five-year capital expenditure plan of $26 billion for fiscal 2026-2030, with $20 billion allocated to upgrading the distribution system and $6 billion allocated to modernizing the transmission system. The planned investment should result in 6-8% annual earnings growth during the period.ATO’s Debt PositionCurrently, ATO’s total debt to capital is 39.89%, better than the industry’s average of 47.36%. This implies that the company is using lower debts to run operations compared with its peers in the industry.Atmos Energy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 9.6. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.ATO’s Stock Price PerformanceOver the past year, ATO’s shares have risen 18.7%, which beat the industry’s growth of 9.8%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are Spire Global, Inc. SR, Southwest Gas Holdings, Inc. SWX and IDACORP, Inc. IDA, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.SR’s long-term earnings growth rate is 10.54%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $5.18, which suggests year-over-year growth of 16.67%.SWX’s long-term earnings growth rate is 13.33%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.63, which suggests year-over-year growth of 14.87%.IDA’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.85, which suggests year-over-year growth of 6.36%. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDACORP, Inc. (IDA): Free Stock Analysis Report Southwest Gas Corporation (SWX): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Spire Inc. (SR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks