Atmos Energy에 대한 매도 수량은 투자자에게 Atmos Energy의 주식 하락에 베팅하는 정도를 알려줍니다. 매도 수량 데이터는 2주마다 업데이트됩니다.

Atmos Energy (NYSE:ATO) 주식, 공매도 수량 보고

Atmos Energy

Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.

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Jefferies analyst Julien Dumoulin-Smith initiates coverage on Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) with a Hold rating and announces Price Target of $155.

News

Price Target

Initiation

Analyst Ratings

Jefferies Initiates Coverage On Atmos Energy with Hold Rating, Announces Price Target of $155

Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $143.25, a high estimate of $145.00, and a low estimate of $140.00. Surpassing the previous average price target of $131.33, the current average has increased by 9.08%.
<img src="https://www.benzinga.com/files/images/story/2024/1727280026_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
A clear picture of Atmos Energy's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$140.00</td>
<td>$128.00</td>
</tr>
<tr>
<td>Paul Fremont</td>
<td>Ladenburg Thalmann</td>
<td>Announces</td>
<td>Buy</td>
<td>$144.00</td>
<td>-</td>
</tr>
<tr>
<td>Richard Sunderland</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$144.00</td>
<td>$134.00</td>
</tr>
<tr>
<td>Sarah Akers</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$145.00</td>
<td>$132.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Atmos Energy. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Atmos Energy compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
For valuable insights into Atmos Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ATO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Atmos Energy analyst ratings.</a>
<h2>About Atmos Energy</h2>
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
<h3>A Deep Dive into Atmos Energy's Financials</h3>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Atmos Energy's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.86%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Atmos Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 23.59%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Atmos Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.39% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Atmos Energy's ROA excels beyond industry benchmarks, reaching 0.68%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.65.
<h2>How Are Analyst Ratings Determined?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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Expert Outlook: Atmos Energy Through The Eyes Of 4 Analysts

Morgan Stanley analyst Stephen Byrd maintains Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) with a Overweight and raises the price target from $128 to $140.

Morgan Stanley Maintains Overweight on Atmos Energy, Raises Price Target to $140

During the last three months, 4 analysts shared their evaluations of Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>), revealing diverse outlooks from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $138.0, a high estimate of $145.00, and a low estimate of $119.00. This upward trend is apparent, with the current average reflecting a 6.7% increase from the previous average price target of $129.33.
<img src="https://www.benzinga.com/files/images/story/2024/1725890409_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
The analysis of recent analyst actions sheds light on the perception of Atmos Energy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Paul Fremont</td>
<td>Ladenburg Thalmann</td>
<td>Announces</td>
<td>Buy</td>
<td>$144.00</td>
<td>-</td>
</tr>
<tr>
<td>Richard Sunderland</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$144.00</td>
<td>$134.00</td>
</tr>
<tr>
<td>Sarah Akers</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$145.00</td>
<td>$132.00</td>
</tr>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$119.00</td>
<td>$122.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Atmos Energy. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Atmos Energy compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Atmos Energy's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Atmos Energy's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/ATO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Atmos Energy analyst ratings.</a>
<h2>All You Need to Know About Atmos Energy</h2>
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
<h3>Atmos Energy: Financial Performance Dissected</h3>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Atmos Energy's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.86%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Utilities sector.
Net Margin: Atmos Energy's net margin excels beyond industry benchmarks, reaching 23.59%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Atmos Energy's ROE stands out, surpassing industry averages. With an impressive ROE of 1.39%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Atmos Energy's ROA stands out, surpassing industry averages. With an impressive ROA of 0.68%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.65, Atmos Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Key Takeaways From Atmos Energy Analyst Ratings

Ladenburg Thalmann analyst Paul Fremont initiates coverage on Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) with a Buy rating and announces Price Target of $144.

Ladenburg Thalmann Initiates Coverage On Atmos Energy with Buy Rating, Announces Price Target of $144

During the last three months, 4 analysts shared their evaluations of Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>), revealing diverse outlooks from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $132.5, with a high estimate of $145.00 and a low estimate of $119.00. This current average has increased by 4.33% from the previous average price target of $127.00. 
<img src="https://www.benzinga.com/files/images/story/2024/1723730443_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
A comprehensive examination of how financial experts perceive Atmos Energy is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Richard Sunderland</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$144.00</td>
<td>$134.00</td>
</tr>
<tr>
<td>Sarah Akers</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$145.00</td>
<td>$132.00</td>
</tr>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$119.00</td>
<td>$122.00</td>
</tr>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$122.00</td>
<td>$120.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Atmos Energy. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Atmos Energy compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Atmos Energy's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Atmos Energy's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/ATO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Atmos Energy analyst ratings.</a>
<h2>Delving into Atmos Energy's Background</h2>
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
<h3>Key Indicators: Atmos Energy's Financial Health</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Atmos Energy displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.86%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Atmos Energy's net margin excels beyond industry benchmarks, reaching 23.59%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Atmos Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.39%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Atmos Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.68% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Atmos Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>What Are Analyst Ratings?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings For Atmos Energy

JP Morgan analyst Richard Sunderland maintains Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) with a Overweight and raises the price target from $134 to $144.

JP Morgan Maintains Overweight on Atmos Energy, Raises Price Target to $144

Earnings

Guidance

Atmos Energy YTD EPS $6; Sees FY24 EPS $6.70-$6.80

Given the current scenario, investors should gauge the changing market dynamics and accordingly chalk out a sturdy investment strategy. Well, you can decide to buy or sell a particular stock by looking at its sales and earnings numbers. However, such a strategy does not always warrant superior returns when the market faces a myriad of issues. A critical analysis of the company&#39;s financial background is always required for a better investment decision.
Indeed, a company should be sound enough to meet its financial obligations. This can be judged with coverage ratios &mdash; the higher these are, the more efficient an enterprise will be in meeting its financial obligations. Here, we have discussed one such ratio called the interest coverage ratio.
Interest Coverage Ratio = Earnings before Interest &amp; Taxes (EBIT) divided by Interest Expense.
Halozyme Therapeutics, Inc., Leidos Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ldos#NYSE">LDOS</a>), Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>) and Addus HomeCare Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adus#NASDAQ">ADUS</a>) are four stocks with an impressive interest coverage ratio.
<h3>Why Interest Coverage Ratio?</h3>
The interest coverage ratio is used to determine how effectively a company can pay the interest charged on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on a company&#39;s profits. The company&#39;s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the essential criteria to factor in before making any investment decision.
The interest coverage ratio suggests the number of times interest could be paid from earnings and also gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is capable of generating earnings well above its interest expense can withstand financial hardship. One should also track the company&#39;s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
<h3>What&#39;s the Strategy?</h3>
Apart from having an interest coverage ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results. 
Interest coverage ratio greater than X-Industry Median 
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks that have a strong EPS growth history.
Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential.&nbsp;
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the 15 stocks that qualified the screening:
Halozyme Therapeutics, a biopharma technology platform company, has a VGM Score of B and sports a Zacks Rank #1.
HALO has a trailing four-quarter earnings surprise of 9.4%, on average. The Zacks Consensus Estimate for Halozyme Therapeutics&#39; current financial year sales and EPS suggests growth of 19.3% and 40.8%, respectively, from the year-ago period. The stock has gained 24% in the past year.
Leidos Holdings, which provides services and solutions in the defense, intelligence, civil and health markets in the United States and internationally, sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Leidos Holdings&#39; current financial year sales and EPS suggests growth of 5.4% and 22.5%, respectively, from a year ago. Leidos Holdings has a trailing four-quarter earnings surprise of 23.5%, on average. The stock has rallied 46.5% in the past year.
Atmos Energy, engaged in regulated natural gas distribution and pipeline and storage businesses, carries a Zacks Rank #2 and has a VGM Score of B. Atmos Energy has a trailing four-quarter earnings surprise of 3.3%, on average.
The Zacks Consensus Estimate for Atmos Energy&#39;s current financial year sales and EPS suggests growth of 6.9% and 11%, respectively, from the year-ago period. The stock has risen 7.9% in the past year.
Addus HomeCare offers home care services, specializing in personal care to support daily living activities, alongside hospice and home health care services. The stock carries a Zacks Rank #2 and has a VGM Score of B.
The Zacks Consensus Estimate for Addus HomeCare&#39;s current financial year sales and EPS suggests growth of 6.5% and 9.2%, respectively, from the year-ago period&#39;s levels. ADUS has a trailing four-quarter earnings surprise of 11.5%, on average. The stock has rallied 24.5% in the past year.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2317150/4-stocks-that-flaunt-an-impressive-interest-coverage-ratio?cid=CS-BENZ-FT-analyst_blog|rw-2317150">To read this article on Zacks.com click here.</a>

Large Cap

Mid Cap

Markets

Trading Ideas

ADUS

LDOS

4 Stocks That Flaunt an Impressive Interest Coverage Ratio

National Fuel Gas Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nfg#NYSE">NFG</a>) reported third-quarter fiscal 2024 adjusted operating earnings of 99 cents per share, which surpassed the Zacks Consensus Estimate of 92 cents by 7.6%. However, the bottom line decreased 2% from the year-ago quarter&#39;s reported figure of $1.01.
GAAP earnings for the quarter were 59 cents per share, down 41% from the year-ago level of $1.00.
<h3>Total Revenues</h3>
NFG reported sales of $417.4 million, which missed the Zacks Consensus Estimate of $528 million by 20.9%. The top line also declined 2.6% from the prior-year recorded figure of $428.7 million.
<div class="chart_embed">
<h3>National Fuel Gas Company Price, Consensus and EPS Surprise</h3>
<h3><img alt="National Fuel Gas Company Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/90/1722499356.png" style="height:282px; width:615px" title="" /></h3>
National Fuel Gas Company price-consensus-eps-surprise-chart | National Fuel Gas Company Quote
</div>
<h3>Segmental Revenues</h3>
Utility: Revenues totaled $124.8 million, down 13.6% from $144.5 million in the year-ago quarter.
Exploration and Production and Other Revenues: Revenues totaled $220.9 million, up 2% from $216.6 million in the year-ago quarter.
Pipeline and Storage and Gathering: Revenues amounted to $71.7 million, implying a 6.1% increase from $67.6 million recorded in the year-ago quarter.
<h3>Highlights of the Release</h3>
Total operating expenses increased 70.7% to $468.9 million year over year. This was primarily due to higher operation and maintenance expenses and higher depreciation and amortization.
Operating loss was $51.4 million against an income of $154.1 million in the year-ago quarter.
Interest expenses totaled $32.9 million, up 25.1% from the year-ago figure of $26.3 million.
The Exploration &amp; Production segment produced 96.5 billion cubic feet (Bcf) of natural gas, up 2% year over year despite approximately 5.6 Bcf of price-related curtailments in the quarter.
<h3>Financial Highlights</h3>
As of Jun 30, 2024, National Fuel Gas had cash and temporary cash investments of $81.4 million compared with $55.4 million as of Sep 30, 2023.
Net cash provided by operating activities for the first nine months of fiscal 2024 totaled $0.87 billion compared with $1.06 billion in the year-ago period.
Capital expenditures amounted to $684.2 million in the first nine months of fiscal 2024 compared with $727.7 million in the year-ago period.
<h3>Guidance</h3>
NFG narrowed its fiscal 2024 earnings projection to the range of $5.00-$5.10 per share from the previously anticipated $4.75-$5.05. The company expects its fiscal 2025 earnings to be in the range of $5.75-$6.25 per share. The Zacks Consensus Estimate for the same is pegged at $6.05 per share.
The company expects its capital expenditure for fiscal 2024 and 2025 to be in the range of $890-970 million and $885-970 million, respectively.
It lowered its production volume expectation to the band of 390-400 Bcf from the previously anticipated 390-405 Bcf, and the same for 2025 is estimated to be in the range of 400-420 Bcf.
<h3>Zacks Rank</h3>
National Fuel Gas currently carries a Zacks Rank #1 (Strong Buy).
<h3>Upcoming Releases</h3>
ONE Gas, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ogs#NYSE">OGS</a>) is slated to report second-quarter 2024 results on Aug 5, after market close. The Zacks Consensus Estimate for second-quarter earnings is pegged at 49 cents per share.
OGS&#39; long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 0.9% in the past four quarters.
Southwest Gas (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/swx#NYSE">SWX</a>) is slated to report second-quarter 2024 results on Aug 6, before market open. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share.
SWX&#39;s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 104.4% in the past four quarters.
Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>) is slated to report third-quarter fiscal 2024 results on Aug 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share.
ATO&#39;s long-term earnings growth rate is 7%. It delivered an average earnings surprise of 3.3% in the past four quarters.
<a href="https://www.zacks.com/stock/news/2313908/national-fuel-gas-nfg-q3-earnings-beat-sales-decline-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2313908">To read this article on Zacks.com click here.</a>

Earnings Beats

National Fuel Gas Q3 Earnings Beat, Sales Decline Y/Y

Natural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Distribution industry control miles of underground pipeline network to provide natural gas services to customers. The rising demand for clean, burning natural gas will create more opportunities for natural gas distribution companies.
Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), with its widespread transmission and distribution lines, interstate pipelines, and significant investments in infrastructure development projects, is poised to benefit as natural gas production volumes are expected to increase in 2024-2025. Steady investments and expanding infrastructure in crucial production regions should drive the performance of&nbsp;National Fuel Gas Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nfg#NYSE">NFG</a>) and New Jersey Resources Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/njr#NYSE">NJR</a>).
About The Industry
The shale revolution has substantially increased natural gas production. Its clean-burning nature has steadily boosted the demand for natural gas from all customer groups. Natural gas distribution pipelines are vital in delivering natural gas from intrastate and interstate transmission pipelines to consumers through small-diameter pipelines. United States has 3,353 trillion cubic feet of natural gas and a natural gas pipeline network of 2.6 million miles is utilized to distribute gas to customers. Major concerns for the industry are aging infrastructure and rising investment costs required to upgrade and maintain the vast network of pipelines due to the hike in interest rates. Competition from other clean energy sources can lower the demand for natural gas and, consequently, for pipelines.
Factors Shaping the Future of the Gas Distribution Industry
Production &amp; Export Volumes of Gas to Increase: The short-term energy outlook released by the U.S. Energy Information Administration indicates that domestic dry natural gas production will remain similar to the 2023 levels in 2024 and increase 1.6% year over year to 105.2 billion cubic feet per day (Bcf/d) in 2025. EIA also forecasts gas consumption to increase 0.3% year over year to 89.4 Bcf/d in 2024. Export volumes are expected to increase in 2024 and 2025, providing relief to natural gas transporters. EIA expects U.S. liquefied natural gas&nbsp;export volumes to increase 2% year over year to 12.2 Bcf/d in 2024 and exports to increase 18% to 14.3 Bcf/d in 2025. This indicates the need for more pipelines to send LNG to export terminals.
Fresh Investments Create Opportunities: The clean-burning nature and wide availability of natural gas across the United States are driving demand. At present, 187 million Americans use natural gas. The distribution network will continue to transport natural gas to all parts of the United States. With five new LNG export terminals being developed in the United States, there should be increased demand for natural gas pipeline services to transfer the gas from production areas to these terminals. Per EIA, once completed, the five new LNG projects will increase the combined export capacity by 9.7 Bcf/d by 2025. Per the American Gas Association report, one residential customer signs up for natural gas service every minute and 80 businesses add natural gas service each day. As production and demand for natural gas increase, more pipelines will be required to safely transfer the commodity to end-users. Per the report, natural gas utilities are investing $33 billion each year to increase the reliability of natural gas distribution and transmission systems, indicating the long-term growth potential of this space.
Likely Drop in Interest Rate to Act as a Tailwind: In order to maintain, upgrade and expand operations, utilities approach capital markets for loans. Utilities have been enjoying near-zero interest rates for the past few years. However, multiple rate hikes by the Federal Reserve took the benchmark rate to 5.25-5.50%, which impacted utility operators. However, in its last few meetings, the Fed did not increase the benchmark rate. In the recently concluded Fed meeting, interest rates were unchanged. Fed officials indicated that they would probably reduce the interest rates in September if the positive development continues. The likely drop in interest rates would be a positive for utility operators planning large investments in infrastructure upgrades and the addition of renewable sources of energy to produce electricity.
<a href="https://www.zacks.com/commentary/2308008/3-gas-distribution-stocks-to-buy-from-a-flourishing-industry?cid=CS-BENZ-FT-industry_outlook-2308008">To read this article on Zacks.com click here.</a>

Federal Reserve

3 Gas Distribution Stocks to Buy From a Flourishing Industry

Major stock indices in the United States ended lower on Jul 17, 2024, pulled down by microchip stocks&#39; decline. Notably, microchip stocks sank following news reports that the Biden administration might impose severe trade restrictions against China in a bid to contain the availability of semiconductor technology to the latter. &nbsp;
Against this backdrop, stock market players might not feel confident in making investments as trade tensions between these two economic giants sometimes result in global market imbalance. However, a prudent investor knows that one can buy stocks that are safe bets in periods of market decline. To this end, we recommend stocks like Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), Donaldson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dci#NYSE">DCI</a>), Atmos Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), First Solar (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fslr#NASDAQ">FSLR</a>) and Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) that have low leverage. Choosing them can shield investors from incurring huge losses in times of crisis.
Now, before selecting low-leverage stocks, let&#39;s explore what leverage is and how choosing a low-leverage stock helps investors.
In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.
However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing.
The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.
The equity market can be volatile at times, and, as an investor, if you don&#39;t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.
To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios.
<h3>Analyzing Debt/Equity</h3>
Debt-to-Equity Ratio = Total Liabilities/Shareholders&#39; Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company.
With the start of the second-quarter earnings season, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.
<h3>The Winning Strategy</h3>
Considering the factors above, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.
<h3>Here are the other parameters:</h3>
Debt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.
Current Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.
Average 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock&#39;s price appreciation.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Estimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.
Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.
Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 23 stocks that made it through the screen.
Vital Farms: The company offers a range of produced pasture-raised foods, which include shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. On Jun 26, 2024, Vital Farms revealed plans to expand its resilient supply chain with a second world-class egg washing and packing facility located in Seymour, IN. The new 72-acre facility will enable Vital Farms to continue growing its pasture-raised egg business and is expected to help generate more than $350 million in additional revenues.
VITL delivered an average four-quarter earnings surprise of 102.10%. It currently sports a Zacks Rank #1. The Zacks Consensus Estimate for VITL&#39;s 2024 sales suggests a solid 22.6% improvement from the 2023 reported figure.
Donaldson: It is engaged in the manufacturing and sale of filtration systems and replacement parts across the world. On Jul 3, 2024, Donaldson announced that through Its Univercells Technologies business, the company has expanded its relationship with the Gene Therapy Program at the University of Pennsylvania to evaluate certain bioreactors for scalable gene therapy production. Univercells Technologies developed the scale-X bioreactor, which was originally designed to lower the cost of viral vaccine production for critical public health vaccines. It is now being applied to enable viral vector accessibility for gene therapies.
DCI currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for DCI&#39;s 2024 sales suggests a 4.6% improvement from the 2023 reported quarter.
Atmos Energy: It is engaged in regulated natural gas distribution and storage business. On May 8, 2024, Atmos Energy announced second-quarter fiscal 2024 results. Its earnings per share came in at $4.93, higher than the year-ago quarter&#39;s level of $4.40.
The company boasts a long-term earnings growth rate of 7%. The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 sales implies an increase of 9.4% from fiscal 2023 sales. ATO currently carries a Zacks Rank #2.
First Solar: It is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology. On Jun 4, 2024, First Solar revealed that its Series 6 Plus and Series 7 TR1 products are the world&#39;s first PV solar modules to achieve the EPEAT Climate+ designation. This makes FSLR&#39;s modules the first to meet the global standard of ultra-low carbon threshold of less-than-equal-to 400 kg CO2e/kWp.
FSLR currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2024 sales implies an improvement of 36.5% from the 2023 reported sales figure. FSLR has a long-term earnings growth rate of 56.2%.
Skechers: It designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several unique brand names. On Jul 4, 2024, Skechers announced that Mohammed Kudus, the Ghana national football team player, has been signed on as a Skechers athlete and is set to appear in multiplatform marketing campaigns supporting Skechers Football.
SKX currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.2%. The Zacks Consensus Estimate for SKX&#39;s 2024 sales suggests a 10.6% improvement from the 2023 reported figure.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2304156/5-low-leverage-stocks-to-buy-amid-u-s-china-trade-tension?cid=CS-BENZ-FT-analyst_blog|rw-2304156">To read this article on Zacks.com click here.</a>

Macro Economic Events

Small Cap

Economics

FSLR

VITL

5 Low-Leverage Stocks to Buy Amid U.S.-China Trade Tension

Major stock indices in the United States ended on the green last Friday, following a key labor market data release, which came almost in line with market expectations. Notably, the latest data implied a 206,000 increase in nonfarm payrolls in June in the United States, which might have reignited Fed rate cut hopes among investors as reflected in an upward price movement in the share market.
Against this backdrop, stock market players might be in the mood for some good investments. However, since the share market has lately been on edge, we recommend stocks like Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), PulteGroup (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>), Atmos Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), Steelcase (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/scs#NYSE">SCS</a>) and Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>), which have low leverage. Choosing them can shield investors from incurring huge losses in times of crisis.
Now, before selecting low-leverage stocks, let&#39;s explore what leverage is and how choosing a low-leverage stock helps investors.
In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.
However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing.
The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.
The equity market can be volatile at times, and, as an investor, if you don&#39;t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.
To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios.
<h3>Analyzing Debt/Equity</h3>
Debt-to-Equity Ratio = Total Liabilities/Shareholders&#39; Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company.
With the second-quarter earnings season ahead of us, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.
<h3>The Winning Strategy</h3>
Considering the factors above, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.
<h3>Here are the other parameters:</h3>
Debt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.
Current Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.
Average 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock&#39;s price appreciation.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Estimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.
Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.
Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 16 stocks that made it through the screen.
Vital Farms: The company offers a range of produced pasture-raised foods, which include shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. On Jun 26, 2024, Vital Farms revealed plans to expand its resilient supply chain with a second world-class egg washing and packing facility located in Seymour, Indiana. The new 72-acre facility will enable Vital Farms to continue growing its pasture-raised egg business and is expected to help generate more than $350 million in additional revenues.
VITL delivered an average four-quarter earnings surprise of 102.10%. It currently sports a Zacks Rank #1. The Zacks Consensus Estimate for VITL&#39;s 2024 sales suggests a solid 22.3% improvement from 2023&#39;s reported figure.
PulteGroup: It engages in homebuilding and financial services businesses, primarily in the United States. On Jul 3, 2024, PulteGroup announced that it has started building its Ryehill and Del Webb Sugar Land at Ryehill, new masterfully planned communities perfectly located in Sugar Land near Hwy 59 and Grand Parkway. Once completed, these communities will feature approximately 2,500 homes offering a variety of flexible floorplans.
PHM currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.6%. The Zacks Consensus Estimate for PHM&#39;s 2024 sales suggests a 7.9% improvement from the year-ago reported quarter.
Atmos Energy: It is engaged in regulated natural gas distribution and storage business. On May 8, Atmos Energy announced second-quarter fiscal 2024 results. Its earnings per share came in at $4.93, higher than the year-ago quarter&#39;s level of $4.40.
ATO currently carries a Zacks Rank #2. The company boasts a long-term earnings growth rate of 7%. The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 sales implies an increase of 9.4% from fiscal 2023 sales.
Steelcase: It is a designer and manufacturer of products used to create high-performance work environments. Its product portfolio includes furniture systems, seating, storage, desks, casegoods, interior architectural products, technology products and related products and services. On Jun 11, 2024, Steelcase, along with Logitech, launched OcularTM View. This extended reality experience immerses people in virtual conversations that make them feel like they are sitting across from each other even though they&#39;re miles apart.
SCS currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2024 sales implies an improvement of 3.3% from the 2023 reported sales figure. SCS has a long-term earnings growth rate of 10%.
Skechers: It designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several uniquely branded names. On May 14, 2024, the company announced its partnership with John Deere, the iconic American brand and signature leaping deer logo, to expand the work, outdoor and fashion industries worldwide with a co-branded professional and lifestyle offering. The footwear collection is designed for agricultural professionals, construction workers, outdoor enthusiasts and trendsetters &mdash; all seeking top-of-their-field brands that offer the latest innovations.
SKX currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.2%. The Zacks Consensus Estimate for SKX&#39;s 2024 sales suggests a 10.6% improvement from the 2023 reported figure.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and backtest them first before taking the investment plunge.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2297566/5-low-leverage-stocks-to-buy-following-key-labor-data-release?cid=CS-BENZ-FT-analyst_blog|rw-2297566">To read this article on Zacks.com click here.</a>

5 Low-Leverage Stocks to Buy Following Key Labor Data Release

Atmos Energy Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>) continuous capital investments to increase the safety and reliability of its natural gas pipelines help enhance its performance. The company&#39;s expansion into renewable natural gas will boost its performance even further.
Currently, the company carries a Zacks Rank #2 (Buy). Let&#39;s look at the factors that are driving the stock.
<h3>Growth Projections</h3>
The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 and 2025 earnings per share increased 1.82% and 0.99%, respectively, in the last 60 days.
The consensus estimate for 2024 and 2025 sales indicates year-over-year growth of 9.39% and 11.32%, respectively.
The long-term (three to five years) earnings growth of the company is pinned at 7%.
<h3>Surprise History &amp; Dividend Details</h3>
Atmos Energy has a positive earnings surprise history. Its trailing four-quarter earnings surprise is 3.3%, on average.
The company has been rewarding its shareholders through consistent increases in annual dividend rates for 40 consecutive years. It has consistently paid shareholders a cash dividend on its common stock since 1995. The current dividend yield of the company is 2.8%, which is better than the Zacks S&amp;P 500 Composite&#39;s yield of 1.61%.
<h3>Leverage</h3>
Atmos Energy&#39;s debt to capital at the end of second-quarter fiscal 2024 was 39.31%, which compared favorably with its industry average of 44.91%. The reduced leverage signifies that the interest costs are lower and the company is using a smaller percentage of borrowed capital than its peers to run its operation.
<h3>Liquidity</h3>
ATO&#39;s current ratio is 1.36, better than the industry average of 0.69. The current ratio, being greater than one, indicates the company has enough short-term assets to meet its short-term obligations.
<h3>Investments &amp; Customer Additions</h3>
The company plans to invest $3.1 billion during fiscal 2024 and approximately $17 billion till fiscal 2028, majorly to increase its safety and reliability. It aims to replace miles of old transmission and distribution lines over the next five years to make its systems more reliable and reduce methane emissions by 50% by 2035 from the 2017 levels. These investments will help deliver natural gas to consumers safely, improve customers&#39; experience, and provide environmental and operational benefits to the company.
Atmos Energy&#39;s regulated and reliable operations generate a relatively stable and growing income. The company expects strong industrial and commercial customer growth. Commercial customer growth remained solid with more than 2,000 commercial customers connecting to the system during the first half of the fiscal 2024.
<h3>Price Performance</h3>
Shares of Atmos Energy have gained 0.1% in the past month against the industry&#39;s 1.9% decline.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c2/70322.jpg?v=1815180337" />
Image Source: Zacks Investment Research
<h3>Other Stocks to Consider</h3>
Some other top-ranked stocks in the industry are NewJersey Resources Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/njr#NYSE">NJR</a>), UGI Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ugi#NYSE">UGI</a>), and Fortis Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fts#NYSE">FTS</a>). Each of these stocks currently carries a Zacks Rank of 2.
NewJersey Resources has delivered an average earnings surprise of 107.41% in the last four quarters. The Zacks Consensus Estimate for earnings for fiscal 2024 indicates year-over-year growth of 9.7%.
UGI has delivered an average earnings surprise of 19.13% in the last four quarters. The consensus estimate for earnings for 2024 and 2025 has gone up 0.69% and 0.32%, respectively, in the last 90 days.
Fortis has delivered an average earnings surprise of 4.17% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 and 2025 indicates year-over-year growth of 2.19% and 2.66%, respectively.
<a href="https://www.zacks.com/stock/news/2296961/reasons-to-add-atmos-energy-ato-to-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2296961">To read this article on Zacks.com click here.</a>

Reasons to Add Atmos Energy to Your Portfolio Now

Southern Company&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/so#NYSE">SO</a>) largest electric subsidiary, Georgia Power, is collaborating on energy efficiency through a $72 million utility energy service contract (UESC) with the U.S. Army Garrison Fort Eisenhower. This initiative aims to enhance the energy efficiency, resiliency and greenhouse gas reduction at the 55,000-acre military installation near Augusta, GA.
<h3>What is a Utility Energy Service Contract?</h3>
The UESC is a limited-source acquisition between a federal agency and a serving utility for energy management services. This contract focuses on improving the overall efficiency of buildings and mechanical equipment at a given location. In this case, SO&#39;s subsidiary, Georgia Power, alongside PowerSecure (another SO&#39;s subsidiary), will lead the improvements at Fort Eisenhower to reduce energy costs by $6 million annually.
<h3>Key Improvements Under the UESC</h3>
Replacement of Diesel Generation Infrastructure: One of the most critical upgrades in this project is replacing the aging diesel generation infrastructure with new natural gas generation systems. This transition is expected to provide more reliable and sustainable power to Fort Eisenhower while significantly reducing its carbon footprint.
Energy Savings From Lighting Retrofits: The project will involve comprehensive lighting retrofits across the installation. By upgrading to modern, energy-efficient lighting systems, Fort Eisenhower will not only save on energy costs but also improve the overall lighting quality in various facilities.
Heating and Air Conditioning Replacement: Another major component of the UESC is the replacement of outdated heating and air conditioning systems. New, energy-efficient heating, ventilation, and air conditioning (HVAC) systems will be installed to ensure better climate control and reduce energy consumption.
Water Conservation Measures: Water conservation is another key focus of this project. Various measures will be implemented to reduce water usage, further contributing to the overall energy savings and sustainability goals of Fort Eisenhower.
<h3>Expected Outcomes and Benefits</h3>
Significant Cost Savings: The energy improvements coordinated by Georgia Power and PowerSecure are anticipated to save $6 million energy costs yearly. These savings should help to fund the initial investment and ensure the long-term sustainability of the project.
Enhanced Energy Resiliency: By upgrading the energy infrastructure, Fort Eisenhower will benefit from increased energy resiliency. The new natural gas generation systems and other improvements will provide more reliable power, ensuring that the military installation can continue its operations without disruptions.
Reduction in Greenhouse Gas Emissions: The shift from diesel to natural gas generation, along with other energy efficiency measures, will significantly reduce greenhouse gas emissions. This reduction aligns with broader environmental goals and supports Fort Eisenhower&#39;s commitment to sustainability.
<h3>Broader Implications for Georgia Power and Southern Company</h3>
Strengthening Energy Infrastructure: This project is the largest UESC in Georgia Power&#39;s history and highlights the company&#39;s commitment to enhancing energy infrastructure. By investing in advanced technologies and sustainable practices, Georgia Power is setting a benchmark for future projects.
Supporting Military and Community Goals: Georgia Power&#39;s collaboration with the U.S. Army Garrison Fort Eisenhower highlights the company&#39;s dedication to supporting military and community goals. By improving energy efficiency and sustainability at the military installation, it is contributing to the broader mission of the U.S. Army and the well-being of the local community.
Long-term Environmental Impact: The successful implementation of this UESC will have long-term environmental benefits. By reducing energy consumption and greenhouse gas emissions, Georgia Power is helping to create a more sustainable future for Fort Eisenhower and the surrounding areas.
<h3>Conclusion</h3>
The $72 million utility energy service contract between SO&#39;s major electric subsidiary and the U.S. Army Garrison Fort Eisenhower represents a significant step forward in energy efficiency and sustainability. Through comprehensive upgrades to lighting, HVAC systems, water conservation measures and the replacement of diesel generation infrastructure, this project will provide substantial cost savings, enhance energy resiliency and reduce greenhouse gas emissions. This collaboration not only benefits Fort Eisenhower but also sets a precedent for future energy projects by Georgia Power and Southern Company.
<h3>Zacks Rank and Key Picks</h3>
Currently, SO carries a Zacks Rank #3 (Hold).
Investors interested in the utility&nbsp;sector might look at some better-ranked stocks like California Water Service Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cwt#NYSE">CWT</a>), sporting a Zacks Rank #1 (Strong Buy) and Primo Water Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/prmw#NYSE">PRMW</a>) and Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), eachholding a Zacks Rank #2 (Buy), at present.
California Water Service Group: CWT is worth approximately $2.8 billion. It currently pays a dividend of $1.12 per share, or 2.31%, on an annual basis.
CWT offers water utility and other related services in California, Washington, New Mexico, Hawaii and Texas. The company is involved in the production, purchase, storage, treatment, testing, distribution and sale of water for domestic, industrial, public and irrigation uses, as well as for fire protection services.
Primo Water Corporation: Primo is a leading pure-play water solutions provider in North America and Europe. The company operates largely under a recurring razor/razorblade revenue model.
PRMW currently pays a dividend of 36 cents per share, or 1.65%, on an annual basis. In the past year, its shares have risen 75.1%.
Atmos Energy Corporation: ATO, together with its subsidiaries, engages in the regulated natural gas distribution and pipeline and storage businesses in the United States.
<div>
ATO operates through two segments, Distribution and Pipeline and Storage. It currently pays a dividend of $3.22 per share, or 2.76%, on an annual basis.&nbsp;
</div>
<a href="https://www.zacks.com/stock/news/2296168/southern-s-so-division-signs-landmark-uesc-with-u-s-army?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2296168">To read this article on Zacks.com click here.</a>

Events

PRMW

Southern's Division Signs Landmark UESC With U.S. Army

Analysts' ratings for Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) over the last quarter vary from bullish to bearish, as provided by 7 analysts.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $127.71, a high estimate of $138.00, and a low estimate of $119.00. This current average reflects an increase of 2.58% from the previous average price target of $124.50. 
<img src="https://www.benzinga.com/files/images/story/2024/1719241329_0.png" alt="price target chart" />
<h2>Diving into Analyst Ratings: An In-Depth Exploration</h2>
A clear picture of Atmos Energy's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$119.00</td>
<td>$122.00</td>
</tr>
<tr>
<td>Stephen Byrd</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$122.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>Nicholas Campanella</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$129.00</td>
<td>$121.00</td>
</tr>
<tr>
<td>Sarah Akers</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$132.00</td>
<td>$130.00</td>
</tr>
<tr>
<td>Gabriel Moreen</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$138.00</td>
<td>$133.00</td>
</tr>
<tr>
<td>Sarah Akers</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$130.00</td>
<td>$121.00</td>
</tr>
<tr>
<td>William Appicelli</td>
<td>UBS</td>
<td>Announces</td>
<td>Neutral</td>
<td>$124.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Atmos Energy. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Atmos Energy compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Atmos Energy's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Atmos Energy's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ATO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Atmos Energy analyst ratings.</a>
<h2>Unveiling the Story Behind Atmos Energy</h2>
Atmos Energy is the largest publicly traded, fully regulated, pure-play natural gas utility in the United States, serving more than 3 million customers in Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. About two thirds of its earnings come from Texas, where it distributes natural gas in northern Texas and owns an intrastate gas pipeline spanning several key shale gas formations and interconnected with five storage facilities.
<h3>Atmos Energy's Financial Performance</h3>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Atmos Energy's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 6.9%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Atmos Energy's net margin is impressive, surpassing industry averages. With a net margin of 26.21%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Atmos Energy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.77%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Atmos Energy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.81%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Atmos Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>Analyst Ratings: Simplified</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Morgan Stanley analyst Stephen Byrd maintains Atmos Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) with a Overweight and lowers the price target from $122 to $119.

Morgan Stanley Maintains Overweight on Atmos Energy, Lowers Price Target to $119

Demand for defensive stocks is not affected much when markets are volatile because of the very nature of the stocks. Even during the 2008 financial crisis, they had not faltered. Utility stocks are examples of such defensive instruments that protect investments when the goings are not good. Whatever the state of the economy, a household or a business needs its electricity, water, or gas supplies.
The sector is known to offer investors a steady dividend income coupled with less price volatility relative to the overall market. This makes the sector a fallback option for investors during recessions and economic downturns. Alternatively, utility stocks usually fall out of favor during times of economic growth, with growth stocks driving the markets.
Of late, investors have been apprehensive about the Fed delaying its promises of interest rate cuts. While it had promised a minimum of three rate cuts in 2024 earlier, currently, it expects a 25 bps cut in September to mark the first loosening of grip on monetary policy since tightening started in early 2022. The central bank wants to analyze further economic data on jobs, inflation and various sectors before embarking on rate cuts. Also, September might be the only instance when it cuts rates this year.
Inflation has cooled down significantly in recent months. The jobs market has slowed down as well, albeit remaining robust and resilient. It looks very likely that once the Fed takes the plunge, rates will come down fast. After the 2008 sub-prime crisis, the Fed cut interest rates to stimulate the economy. On cue, investors flocked to utilities, which are viable defensive choices during macroeconomic downturns. There is no reason why history will not repeat itself. The sector has done very well this year already, with the S&amp;P 500 Select Sector SPDR (ARCA:XLU) advancing 15.7% year to date as of May 31, 2024.
In addition, utilities are usually considered long-term buy-and-hold options as they regularly declare dividends, and dividend yields on utility stocks are generally higher than those paid by other equities. In this environment, utility stocks provide much-required stability and growth potential. Hence, astute investors should consider such stocks at present.
<h3>Our Choices</h3>
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Vistra Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vst#NYSE">VST</a>) is an integrated retail electricity and power generation company. Vistra&#39;s expected earnings growth rate for the current year is 13.7%. The Zacks Consensus Estimate for its current-year earnings has improved 13% over the past 60 days. This Zacks Rank #1 company has a VGM Score of B.
Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>) is a regulated natural gas distribution, pipeline and storage company. Atmos&#39; expected earnings growth rate for the current year is 10.2%. The Zacks Consensus Estimate for its current-year earnings has improved 1.8% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B.
Primo Water Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/prmw#NYSE">PRMW</a>) provides water solutions for residential and commercial customers. Primo Water&#39;s expected earnings growth rate for the current year is 53.2%. The Zacks Consensus Estimate for its current-year earnings has improved 8% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B
<a href="https://www.zacks.com/stock/news/2291375/3-utility-stocks-to-buy-with-rate-cuts-on-the-horizon?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2291375">To read this article on Zacks.com click here.</a>

ETFs

3 Utility Stocks to Buy With Rate Cuts on the Horizon

New Jersey Resources (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/njr#NYSE">NJR</a>) continues to benefit from its infrastructure upgrades that help serve its expanding customer base more efficiently. Given its earnings growth opportunities and strong return on equity (ROE), NJR makes for a solid investment option in the utility sector. 
Let&#39;s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
<h3>Growth Projections &amp; Surprise History</h3>
The Zacks Consensus Estimate for fiscal 2024 earnings per share has moved up 1.7% in the past 90 days to $2.94. 
New Jersey Resources delivered an average earnings surprise of 107.4% in the last four quarters.
<h3>Return on Equity</h3>
ROE indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, New Jersey Resources&#39; ROE is 12.16%, higher than the industry&#39;s average of 9.7%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility gas distribution industry.
<h3>Dividend Growth</h3>
NJR has been increasing shareholders&#39; value by paying dividends. Currently, its quarterly dividend is 42 cents per share, resulting in an annualized dividend of $1.68 per share, up 7.7% from the previous figure of $1.56. The company&#39;s current dividend yield is 3.99%, better than the Zacks S&amp;P 500 composite&#39;s 1.29%.&nbsp;
<h3>Systematic Investments &amp; Customer Growth</h3>
New Jersey Resources makes consistent investments to upgrade and maintain its existing infrastructure. The idea is to provide reliable services to its customers around the clock. The company expects capital investments to be in the range of $619-$754 million and $578-$742 million for fiscal 2024 and fiscal 2025, respectively. 
The company added 4,058 new customers during the first six months of fiscal 2024, compared with 4,064 in the same period of fiscal 2023. It expects these new customers to contribute nearly $3.4 million of incremental utility gross margin on an annualized basis.
<h3>Price Performance</h3>
In the past three months, shares of the company have risen 2% compared with the sector&#39;s 1.4% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/77/68951.jpg?v=1395337783" /> 
Image Source: Zacks Investment Research
<h3>Other Stocks to Consider</h3>
A few other top-ranked stocks from the same industry are Atmos Energy&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), MDU Resources (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mdu#NYSE">MDU</a>) and UGI Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ugi#NYSE">UGI</a>), each holding a Zacks Rank #2 at present. 
ATO&#39;s long-term (three to five years) earnings growth rate is 7%. The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 EPS indicates year-over-year growth of 10.2%. 
MDU&#39;s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for MDU&#39;s 2024 EPS indicates a year-over-year increase of 3.3%. 
The Zacks Consensus Estimate for UGI&#39;s fiscal 2024 EPS indicates a year-over-year improvement of 2.8%. The company delivered an average earnings surprise of 19.1% in the last four quarters.
<a href="https://www.zacks.com/stock/news/2288953/reasons-to-add-new-jersey-resources-njr-to-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2288953">To read this article on Zacks.com click here.</a>

Reasons to Add New Jersey Resources to Your Portfolio Now

Expectations of multiple interest rate cuts in 2024 had faded long back and now the Federal Reserve has almost assured that it isn&#39;t going to happen anymore.
On Jun 12, Federal Reserve Chairman Jerome Powell said in the post-FOMC meeting statement that the central bank sees the possibility of only a single rate cut this year, sharply down from three rate cuts hinted earlier this year.
This came as the Federal Reserve kept interest rates unchanged in its June FOMC meeting in its current range of 5.25-5.5%.
Although inflation slowed somewhat in April and maintained its declining pace in May, the Federal Reserve maintains a hawkish stance as it is still sharply higher than the Fed&#39;s 2% target. Powell acknowledged that inflation has declined sharply over the past year but remains elevated.
Powell&#39;s comments didn&#39;t impact investors much as it was expected that the Federal Reserve would keep interest rates unchanged. Also, markets started pricing in a single 25 basis point rate cut this year over the past few weeks. In fact, several economists predicted no rate cuts this year.
Also, the latest &quot;dot plot&quot; from the FOMC meeting suggested a potential total rate cut of 1% by 2025. Consequently, the terminal rate of the Fed funds rate is currently projected to reach 4.1% by the end of 2025.
However, the Federal Reserve&#39;s forecast for the long-term interest rate, which serves as a benchmark that neither stimulates nor constrains growth, has been revised up to 2.8% from an earlier projection of 2.6%. This indicates that Fed officials are leaning toward a perspective of maintaining higher interest rates for a longer period.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<h3>Our Picks</h3>
Given this situation, it would be wise to invest in defensive stocks like utilities and consumer staples. Five such stocks are Atmos Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), Pinnacle West Capital Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnw#NYSE">PNW</a>), California Water Service Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cwt#NYSE">CWT</a>) Utz Brands, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/utz#NYSE">UTZ</a>) and PepsiCo, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>).
Also, these stocks belong to the category of low-beta stocks (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high-dividend yield and a favorable Zacks Rank. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Atmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.4 million customers in more than 1,400 communities in eight states, from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energyoperates more than 72,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.
Atmos Energy has an expected earnings growth rate of 9.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 60 days. ATO presently has a Zacks Rank #2. Atmos Energy has a beta of 0.67 and a current dividend yield of 2.77%.
Pinnacle West Capital Corporation provides electricity services (wholesale or retail) in the state of Arizona through its subsidiaries. PNW is involved in the generation, transmission and distribution of electricity from coal, nuclear, gas, oil and solar.
Pinnacle West Capital Corporation&#39;s has an expected earnings growth rate of 8.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. PNW currently carries a Zacks Rank #2. Pinnacle West Capital Corporation has a beta of 0.50 and a current dividend yield of 4.59%.
California Water Service Group is one of the largest investor-owned water utilities in the United States. CWT has six subsidiaries &mdash; California Water Service, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, CWS Utility Services and HWS Utility Services.
California Water Service Group has an expected earnings growth rate of 246.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 40% over the last 60 days. CWT currently carries a Zacks Rank #1. California Water Service Group has a beta of 0.48 and a current dividend yield of 2.34%.
Utz Brands, Inc. manufactures a diverse portfolio of salty snacks under popular brands including Utz, Zapp&#39;s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Brand) and TORTIYAHS!. UTZ, formerly known as Collier Creek, is based in New York, United States
Utz Brands has an expected earnings growth rate of 26.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the last 60 days. UTZ currently carries a Zacks Rank #2. Utz Brands has a beta of 0.99 and a current dividend yield of 1.29%.
PepsiCo, Inc. is one of the leading global food and beverage companies. PEP&#39;s complementary brands/businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. PepsiCo serves customers in more than 200 countries and territories.
PepsiCo has an expected earnings growth rate of 7.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. PEP currently has a Zacks Rank #2. PepsiCo has a beta of 0.52 and a current dividend yield of 3.31%.
<a href="https://www.zacks.com/stock/news/2288323/5-low-beta-stocks-to-buy-as-fed-indicates-one-rate-cut-in-2024?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2288323">To read this article on Zacks.com click here.</a>

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