Utility Gas Prices Are Rising Rapidly. This Stock Stands Out as a Clear Winner.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: Marketbeat
Consumer Price Index Release: The U.S. Bureau of Labor Statistics reported a year-over-year inflation rate of 2.7% for December, with notable increases in utility gas services by 10.8%, raising concerns for consumers facing elevated utility bills during winter.
Global Gas Prices Surge: Rising global demand, particularly for liquefied natural gas (LNG), has led to skyrocketing utility gas prices, with U.S. LNG futures surging 17% amid freezing conditions affecting supply.
Atmose Energy's Performance: Atmose Energy, a major utility company, has seen significant growth in earnings and revenue, with a 9.22% increase in earnings per share and a 13% rise in revenue, contributing to a strong stock performance.
Investment Outlook: Analysts recommend Atmose Energy as a strong investment option, highlighting its consistent dividend growth and solid financial health, despite the broader market's fluctuations.
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Analyst Views on ATO
Wall Street analysts forecast ATO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ATO is 180.67 USD with a low forecast of 172.00 USD and a high forecast of 188.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
5 Hold
0 Sell
Hold
Current: 169.030
Low
172.00
Averages
180.67
High
188.00
Current: 169.030
Low
172.00
Averages
180.67
High
188.00
About ATO
Atmos Energy Corporation is a natural gas-only distributor. The Company delivers natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. It manages proprietary pipeline and storage assets, including intrastate natural gas pipeline systems in Texas. Its segments include distribution and pipeline and storage. The distribution segment comprises its regulated natural gas distribution and related sales operations in eight states. The pipeline and storage segment are consists of regulated pipeline and storage operations of its Atmos Pipeline-Texas (APT) division and its natural gas transmission operations in Louisiana. APT is an intrastate pipeline operation in Texas with a heavy concentration in the established natural gas-producing areas of central, northern, and eastern Texas, extending into or near the major producing areas of the Barnett Shale, the Texas Gulf Coast, and the Permian Basin of West Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Utilities Sector Lags with Atmos Energy Down 1.9% Amidst Market Trends
- Utilities Sector Performance: The utilities sector is the worst performer in afternoon trading on Thursday, up only 0.1%, with Atmos Energy and Entergy showing losses of 1.9% and 1.1%, indicating weakness in this sector.
- ETF Performance Analysis: The Utilities Select Sector SPDR ETF, which tracks utility stocks, is up 0.2% on the day and 0.98% year-to-date, while Atmos Energy is down 1.46% year-to-date, highlighting a disparity between individual stocks and the ETF.
- Energy Sector Dynamics: The energy sector also shows weakness, up 0.1%, with APA Corp and Diamondback Energy down 3.7% and 1.9%, respectively, reflecting cautious market sentiment towards energy stocks.
- ETF Comparison: In contrast to the utilities ETF, the Energy Select Sector SPDR ETF is up 0.3% on the day and 9.32% year-to-date, indicating relative strength in energy stocks despite individual poor performances like that of Diamondback Energy.
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Atmos Energy Corp. Analyzes Dividend History Indicating 2.4% Annual Yield Potential
- Dividend Yield Expectation: Atmos Energy Corp.'s recent dividend history suggests a potential maintenance of a 2.4% annualized dividend yield, providing investors with a stable income expectation amidst profitability fluctuations.
- Volatility Analysis: With a trailing twelve-month volatility of 17% calculated from the last 251 trading days, Atmos Energy offers a basis for risk assessment in options trading, aiding investors in deciding whether to sell covered calls at the $175 strike price.
- Options Market Dynamics: On Wednesday, the put volume among S&P 500 components reached 917,392 contracts, while call volume hit 2.14 million contracts, indicating a strong preference for calls among buyers, reflecting optimistic market sentiment.
- Options Trading Strategy: Given the current high call volume relative to the long-term median put:call ratio of 0.65, Atmos Energy's options trading strategy may attract more investor attention, particularly in light of positive earnings expectations.
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