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Here's Why ATO Stock Deserves a Spot in Your Portfolio Right Now
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Key Takeaways
ATO's fiscal 2026 revenue estimate is pinned at $5.81 billion, implying 23.5% year-over-year growth.
The company plans $26B in capital spending from 2026 to 2030 to upgrade and modernize its systems.
ATO's total debt-to-capital ratio of 39.89% is better than the industry's average of 47.36%.
Atmos Energy Corporation (ATO - Free Report) 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 present
ATO’s Growth Outlook & Surprise History
The 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 History
Atmos 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 Focus
Atmos 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 Position
Currently, 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 Performance
Over the past year, ATO’s shares have risen 18.7%, which beat the industry’s growth of 9.8%.
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%.
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Here's Why ATO Stock Deserves a Spot in Your Portfolio Right Now
Key Takeaways
Atmos Energy Corporation (ATO - Free Report) 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 present
ATO’s Growth Outlook & Surprise History
The 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 History
Atmos 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 Focus
Atmos 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 Position
Currently, 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 Performance
Over the past year, ATO’s shares have risen 18.7%, which beat the industry’s growth of 9.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Spire Global, Inc. (SR - Free Report) , Southwest Gas Holdings, Inc. (SWX - Free Report) and IDACORP, Inc. (IDA - Free Report) , 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%.