Edward Jones has reaffirmed its Buy rating on shares of Atmos Energy (NYSE: NYSE:ATO), citing the company's potential for above-average earnings growth.
The firm's stance is based on what it sees as attractive valuation of the shares, driven by significant infrastructure investment opportunities.
According to the firm, the positive outlook for Atmos Energy is rooted in its fully regulated earnings mix, which provides a stable financial environment.
The regulatory aspect, combined with the company's investment opportunities, is expected to result in higher earnings growth compared to its peers.
The energy company's financial health and growth prospects are seen as strong due to the robustness of its investment plans. The firm believes that these plans will underpin the anticipated earnings expansion.
In other recent news, Atmos Energy Corporation has reported strong fiscal performance with a significant rise in diluted earnings per share (EPS), from $5.33 to $6. This growth was driven by regulatory outcomes, customer expansion, and robust system revenues. The company added 57,000 new customers over the past year, mainly in Texas, and welcomed 10 new industrial customers in the third quarter.
Atmos Energy has also recently appointed Telisa Toliver to its board of directors. Toliver brings a wealth of experience from her current role as General Manager of Renewable Power at Chevron (NYSE:CVX) Pipeline and Power.
Ladenburg Thalmann initiated coverage on Atmos Energy with a "Buy" rating, recognizing the company's strong balance sheet and growth prospects. The company anticipates its fiscal '24 EPS to be at the higher end of the $6.70 to $6.80 range and projects a 6% to 8% EPS growth through fiscal '28.
InvestingPro Insights
Atmos Energy (NYSE:ATO) has been recognized for its consistent financial performance and stability, with InvestingPro Tips highlighting the company's impressive track record of raising its dividend for 31 consecutive years, and maintaining dividend payments for 42 consecutive years. These factors underscore the firm's confidence in Atmos Energy's ability to deliver above-average earnings growth. The company's commitment to shareholder returns is further evidenced by a dividend yield of 2.36% as of the last twelve months leading up to Q3 2024.
InvestingPro Data indicates that Atmos Energy has a market capitalization of $21.19 billion and trades at a P/E ratio of 20.15, suggesting that the stock is valued by the market at a level reflective of its earnings. The company's stock has also been trading near its 52-week high, at 98.38% of the peak, which aligns with Edward Jones's assessment of the stock's premium market position. Moreover, Atmos Energy has demonstrated a strong return over the last three months, with a price total return of 17.42%, which may attract investors looking for robust performance in their portfolio.
For those seeking more in-depth analysis, InvestingPro offers additional tips on Atmos Energy, which can be found at https://www.investing.com/pro/ATO. These tips can provide investors with a more comprehensive understanding of the company's financial health and future growth prospects.
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