Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 28th, 2026

Cetera Investment Advisers increased its position in Atmos Energy Corporation (NYSE:ATO – Free Report) by 4.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 102,024 shares of the utilities provider’s stock after acquiring an additional 4,266 shares during the period. Cetera Investment Advisers owned about 0.06% of Atmos Energy worth $18,846,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of Atmos Energy by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 21,032,554 shares of the utilities provider’s stock worth $3,525,687,000 after purchasing an additional 276,485 shares during the period. Capital International Investors increased its holdings in Atmos Energy by 8.5% during the fourth quarter. Capital International Investors now owns 11,893,826 shares of the utilities provider’s stock valued at $1,993,968,000 after buying an additional 927,986 shares during the last quarter. State Street Corp raised its position in Atmos Energy by 1.5% in the fourth quarter. State Street Corp now owns 10,786,358 shares of the utilities provider’s stock worth $1,808,117,000 after acquiring an additional 155,836 shares during the period. Geode Capital Management LLC raised its position in Atmos Energy by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 4,214,985 shares of the utilities provider’s stock worth $703,824,000 after acquiring an additional 78,438 shares during the period. Finally, Bank of America Corp DE boosted its stake in shares of Atmos Energy by 2.3% during the 3rd quarter. Bank of America Corp DE now owns 3,737,053 shares of the utilities provider’s stock worth $638,102,000 after acquiring an additional 84,786 shares during the last quarter. Institutional investors own 90.17% of the company’s stock.

Atmos Energy Trading Down 0.5% Shares of Atmos Energy stock opened at $178.26 on Tuesday. Atmos Energy Corporation has a fifty-two week low of $154.23 and a fifty-two week high of $192.51. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.89 and a current ratio of 1.00. The company has a market capitalization of $29.76 billion, a P/E ratio of 21.90, a P/E/G ratio of 3.11 and a beta of 0.60. The company has a fifty day moving average of $173.75 and a 200 day moving average of $177.82.

Atmos Energy (NYSE:ATO – Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The utilities provider reported $3.47 EPS for the quarter, beating analysts’ consensus estimates of $3.37 by $0.10. Atmos Energy had a return on equity of 9.59% and a net margin of 27.58%.The business had revenue of $1.96 billion for the quarter, compared to analysts’ expectations of $1.94 billion. During the same period last year, the firm earned $3.03 earnings per share. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. On average, sell-side analysts anticipate that Atmos Energy Corporation will post 8.44 earnings per share for the current fiscal year.

Atmos Energy Announces Dividend The company also recently declared a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were issued a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 2.2%. The ex-dividend date was Tuesday, May 26th. Atmos Energy’s dividend payout ratio (DPR) is currently 49.14%.

Analyst Ratings Changes A number of equities research analysts have recently issued reports on the stock. TD Cowen boosted their price objective on shares of Atmos Energy from $193.00 to $196.00 and gave the company a “hold” rating in a research report on Friday, May 15th. Argus decreased their target price on Atmos Energy from $190.00 to $185.00 and set a “buy” rating on the stock in a report on Thursday, July 2nd. Wells Fargo & Company initiated coverage on Atmos Energy in a research report on Monday, July 13th. They set an “overweight” rating and a $200.00 target price on the stock. Citigroup boosted their price target on Atmos Energy from $182.00 to $191.00 and gave the company a “neutral” rating in a report on Friday, May 8th. Finally, Weiss Ratings downgraded Atmos Energy from a “buy (b+)” rating to a “buy (b)” rating in a research note on Tuesday, June 2nd. Four research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $186.92.

Get Our Latest Stock Analysis on Atmos Energy

Atmos Energy Profile (Free Report)

Atmos Energy Corporation (NYSE: ATO) is a U.S.-based natural-gas utility that primarily focuses on the regulated distribution of natural gas. Headquartered in Dallas, Texas, the company operates through local distribution systems to deliver natural gas to residential, commercial, industrial and electric generation customers. Atmos’s core activities include pipeline operations, gas distribution, system maintenance and reliability programs designed to ensure safe and continuous service to its customers.

The company’s services encompass gas delivery, system integrity and maintenance, storage and transmission connections, and customer-facing programs such as billing, conservation initiatives and energy-efficiency offerings.

Further Reading Five stocks we like better than Atmos Energy AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding ATO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Atmos Energy Corporation (NYSE:ATO – Free Report).

Receive News & Ratings for Atmos Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Atmos Energy and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEDell Technologies Inc. $DELL Shares Sold by Bank of Nova Scotia

NEXT HEADLINE »Bank of Nova Scotia Increases Stock Position in Northern Trust Corporation $NTRS

I rate Atmos Energy a buy, supported by a $26 billion capital plan poised to nearly double its rate base by FY2030. ATO's rapid conversion of capital spending to earnings, with over 90% earning within six months, underpins a visible EPS growth trajectory. Texas pipeline operations offer additional regulated growth, with APT's expanding rate base and robust demand drivers supporting long-term returns.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Atmos Energy (ATO - Free Report) . This company, which is in the Zacks Utility - Gas Distribution industry, shows potential for another earnings beat.

When looking at the last two reports, this natural gas utility has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.11%, on average, in the last two quarters.

For the last reported quarter, Atmos came out with earnings of $3.47 per share versus the Zacks Consensus Estimate of $3.37 per share, representing a surprise of 2.97%. For the previous quarter, the company was expected to post earnings of $2.41 per share and it actually produced earnings of $2.44 per share, delivering a surprise of 1.24%.

Price and EPS Surprise

For Atmos, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Atmos has an Earnings ESP of +0.13% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 5, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Dallas, Atmos Energy (ATO - Free Report) is a Utilities stock that has seen a price change of 2.77% so far this year. Currently paying a dividend of $1.00 per share, the company has a dividend yield of 2.32%. In comparison, the Utility - Gas Distribution industry's yield is 3.36%, while the S&P 500's yield is 1.41%.

Looking at dividend growth, the company's current annualized dividend of $4.00 is up 14.9% from last year. Over the last 5 years, Atmos Energy has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.75%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Atmos's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, ATO expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.39 per share, which represents a year-over-year growth rate of 12.47%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, ATO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

For the quarter ended March 2026, Atmos Energy (ATO - Free Report) reported revenue of $1.96 billion, up 0.6% over the same period last year. EPS came in at $3.47, compared to $3.03 in the year-ago quarter.

The reported revenue represents a surprise of -12.33% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $3.37, the EPS surprise was +3.07%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Atmos performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Operating revenues- Pipeline and Storage segment: $289.29 million versus $280.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.Operating revenues- Distribution segment: $1.88 billion versus $1.98 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.3% change.Operating Income- Pipeline and Storage: $198.9 million versus the two-analyst average estimate of $163.12 million.Operating Income- Distribution: $565.9 million versus the two-analyst average estimate of $557.31 million.View all Key Company Metrics for Atmos here>>>

Shares of Atmos have returned -0.8% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways ATO posted Q2 EPS of $3.47, topping estimates and rising 14.5% from last year. Atmos Energy's Q2 operating income climbed 21.6% as O&M expenses fell 16.1%. ATO reaffirmed fiscal 2026 EPS guidance of $8.40-$8.50 and raised its annual dividend 14.9%. Atmos Energy (ATO - Free Report) posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.

ATO’s RevenuesThe company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.

Highlights of ATO’s Q2 ReleaseOperation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.

Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.

Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.

ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.

Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.

The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.

ATO’s Segmental DetailsDistribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.

Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.

ATO’s Financial HighlightsAs of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.

As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.

Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.

During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.

In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.

ATO’s FY26 GuidanceAtmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.

ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.

Total net income is expected to be in the range of $1.41-$1.43 billion.

ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.

ATO’s Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utilities ReleasesAlgonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.

PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.

Global Water Resources, Inc. (GWRS - Free Report) is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Atmos Energy (ATO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Atmos Energy is one of 110 individual stocks in the Utilities sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 1.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ATO has gained about 7.9% so far this year. In comparison, Utilities companies have returned an average of 5.2%. This shows that Atmos Energy is outperforming its peers so far this year.

One other Utilities stock that has outperformed the sector so far this year is American States Water (AWR - Free Report) . The stock is up 6.5% year-to-date.

For American States Water, the consensus EPS estimate for the current year has increased 6.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 13 individual stocks and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so ATO is performing better in this area.

American States Water, however, belongs to the Utility - Water Supply industry. Currently, this 11-stock industry is ranked #214. The industry has moved -21.9% so far this year.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and American States Water as they could maintain their solid performance.

Atmos Energy (ATO - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Atmos is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Atmos, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for AtmosThis natural gas utility is expected to earn $8.38 per share for the fiscal year ending September 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Atmos. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.3%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Atmos to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Atmos Energy remains a "Buy" for its stable, regulated business and credible 7%-8% long-term growth outlook. ATO benefits from Texas migration, strong customer growth, and favorable legislative changes supporting rapid cap-ex recovery. Raised FY24 EPS guidance to $8.40-$8.50, reflecting pipeline strength and high near-term visibility, with a 2.2% dividend yield and 42-year increase streak.

Atmos Energy (ATO - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 10.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for ATOThe RSI reading of 26.01 for ATO is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ATO in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 1.7% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, ATO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .