Shares Of Atmos Energy Corporation (NYSE: ATO): Are They Overvalued Compared To Others?

Atmos Energy Corporation (NYSE:ATO) shares, rose in value on Friday, 08/26/22, with the stock price down by -1.35% to the previous day’s close as strong demand from buyers drove the stock to $115.99.

Actively observing the price movement in the last trading, the stock closed the session at $117.58, falling within a range of $115.87 and $117.81. The value of beta (5-year monthly) was 0.48 whereas the PE ratio was 21.38 over 12-month period. Referring to stock’s 52-week performance, its high was $122.96, and the low was $85.80. On the whole, ATO has fluctuated by -3.29% over the past month.

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With the market capitalization of Atmos Energy Corporation currently standing at about $16.24 billion, investors are eagerly awaiting this quarter’s results, scheduled for Jan 31, 2022 – Feb 04, 2022. The company’s Forward Dividend Ratio is 2.72, with its dividend yield at 2.35%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.84, which is expected to increase to $0.53 for fiscal year $5.55 and then to about $5.92 by fiscal year 2023. Data indicates that the EPS growth is expected to be 8.40% in 2023, while the next year’s EPS growth is forecast to be 6.70%.

Analysts have estimated the company’s revenue for the quarter at $681.07 million, with a low estimate of $629.59 million and a high estimate of $765 million. Wall Street analysts also predicted that in 2023, the company’s y-o-y revenues would reach $3.79 billion, representing an increase of 11.30% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were 1 upward and no downward review(s) in last seven days. We see that ATO’s technical picture suggests that short-term indicators denote the stock is a 50% Buy on average. However, medium term indicators have put the stock in the category of 50% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

12 analyst(s) have assigned their ratings of the stock’s forecast evaluation on a scale of 1.00-5.00 to indicate a strong buy to a strong sell recommendation. The stock is rated as a Hold by 5 analyst(s), 6 recommend it as a Buy and 0 called the ATO stock Overweight. In the meantime, 1 analyst(s) believe the stock as Underweight and 0 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as the average rating for the stock is Overweight.

The stock’s technical analysis shows that the PEG ratio is about 2.55, with the price of ATO currently trading nearly -1.02% and 2.08% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 49.46, while the 7-day volatility ratio is showing 1.22% which for the 30-day chart, stands at 1.47%. Furthermore, Atmos Energy Corporation (ATO)’s beta value is 0.49, and its average true range (ATR) is 1.72. The company’s stock has been forecasted to trade at an average price of $127.00 over the course of the next 52 weeks, with a low of $115.00 and a high of $140.00. Based on these price targets, the low is 0.85% off current price, whereas the price has to move -20.7% to reach the yearly target high. Additionally, analysts’ median price of $129.50 is likely to be welcomed by investors because it represents a decrease of -11.65% from the current levels.

A comparison of Atmos Energy Corporation (ATO) with its peers suggests the former has fared considerably weaker in the market. ATO showed an intraday change of -1.35% in last session, and over the past year, it grew by 19.95%%. In comparison, ONEOK Inc. (OKE) has moved lower at -2.72% on the day and was up 23.39% over the past 12 months. On the other hand, the price of NiSource Inc. (NI) has fallen -1.79% on the day. The stock, however, is off 21.84% from where it was a year ago. The PE ratio stands at 21.38 for Atmos Energy Corporation, compared to 18.44 for ONEOK Inc., and 19.64 for NiSource Inc. Other than that, the overall performance of the S&P 500 during the last trading session shows that it lost -3.37%. Meanwhile, the Dow Jones Industrial Slipped by -3.03%.

Data on historical trading for Atmos Energy Corporation (NYSE:ATO) indicates that the trading volumes over the past 10 days have averaged 0.83 million and over the past 3 months, they’ve averaged 938.26K. According to company’s latest data on outstanding shares, there are 139.88 million shares outstanding.

Nearly 0.30% of Atmos Energy Corporation’s shares belong to company insiders and institutional investors own 92.80% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 6.05 million shares as on Jul 14, 2022, resulting in a short ratio of 7.55. According to the data, the short interest in Atmos Energy Corporation (ATO) stood at 4.35% of shares outstanding as of Jul 14, 2022; the number of short shares registered in Jun 14, 2022 reached 5.79 million. The stock has risen by 10.71% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the ATO stock heading into the next quarter.

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