Dallas, Texas-based Atmos Energy Corporation (ATO) engages in the regulated natural gas distribution, pipeline, and storage businesses. Valued at a market cap of $24.7 billion, the company operates through two segments: Distribution and Pipeline and Storage.

Shares of ATO have significantly outperformed the broader market over the past 52 weeks. ATO has soared 32.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.1%. Moreover, shares of ATO are up 11.5% on a YTD basis, compared to SPX’s marginal drop.

Zooming in further, Atmos Energy has also outpaced the Utilities Select Sector SPDR Fund’s (XLU) 11.2% rise over the past 52 weeks and a 5.8% return on a YTD basis. 

Atmos Energy stock fell marginally following the release of its Q2 2025 results on May 7. The company posted revenue of $2 billion, marking an 18.4% year-over-year increase. Operating income rose 14.1% to $628.9 million, while EPS grew 6.3% to $3.03, beating analysts’ expectations by 3.8%. 

Looking ahead to fiscal 2025, ATO raised its EPS guidance to a range of $7.20 to $7.30, up from its prior outlook of $7.05 to $7.25. 

For the current fiscal year, ending in September 2025, analysts expect ATO’s EPS to increase 6.2% year-over-year to $7.25. Moreover, the company's earnings surprise history is strong. It beat the consensus estimates in the past four quarters. 

Among the 13 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.” 

This configuration is slightly less bullish than three months ago, with six “Strong Buy” ratings on the stock.

On May 22, Morgan Stanley lowered ATO’s price target to $159 while maintaining an “Overweight” rating. 

As of writing, Atmos Energy is trading below the mean price target of $162.20. The Street-high price target of $172 implies a potential upside of 10.8% from the current price levels.