Is Atmos Energy Stock Outperforming the Dow?

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Dallas, Texas-based Atmos Energy Corporation (ATO) distributes natural gas. With a market cap of $24.2 billion, the company provides natural gas marketing and procurement services to large customers, as well as manages storage and pipeline assets.
Companies worth $10 billion or more are generally described as 'large-cap stocks,' and ATO perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regulated gas utilities industry. ATO's financial strength stems from operational efficiency, strategic rate management, and infrastructure investments, positioning it for continued financial success and customer service excellence.
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Despite its notable strength, ATO shares have slipped 9% from their 52-week high of $167.45, achieved on May 8. Over the past three months, ATO stock has gained 1.2%, underperforming the Dow Jones Industrials Average's ($DOWI) 1.4% gains during the same time frame.
In the longer term, shares of ATO rose 9.4% on a YTD basis and climbed 30.3% over the past 52 weeks, outperforming DOWI's YTD marginal losses and 8.6% returns over the last year.
To confirm the bullish trend, ATO has been trading above its 200-day moving average over the past year, with minor fluctuations. However, the stock is trading below its 50-day moving average since late May.
On May 7, ATO shares closed up marginally after reporting its Q2 results. Its EPS of $3.03 beat Wall Street expectations of $2.92. The company's revenue stood at $2 billion, up 18.4% year over year. ATO expects full-year EPS to be between $7.20 and $7.30.
ATO's rival, Southwest Gas Holdings, Inc. (SWX) shares lagged behind the stock, with a 4.6% uptick on a YTD basis and a marginal loss over the past 52 weeks.
Wall Street analysts are moderately bullish on ATO's prospects. The stock has a consensus 'Moderate Buy' rating from the 14 analysts covering it, and the mean price target of $162.36 suggests a potential upside of 6.5% from current price levels.
On the date of publication, Neha Panjwani 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. This article was originally published on Barchart.com