Trade-Ideas LLC identified

Atmos Energy

(

ATO

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Atmos Energy as such a stock due to the following factors:

  • ATO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.9 million.
  • ATO has traded 118,696 shares today.
  • ATO is trading at a new lifetime high.

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More details on ATO:

Atmos Energy Corporation, together with its subsidiaries, engages in the distribution, transmission, and storage of natural gas in the United States. It operates in three segments: Regulated Distribution, Regulated Pipeline, and Nonregulated. The stock currently has a dividend yield of 2.7%. ATO has a PE ratio of 2. Currently there are 6 analysts that rate Atmos Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Atmos Energy has been 606,500 shares per day over the past 30 days. Atmos Energy has a market cap of $6.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.60 and a short float of 1.4% with 2.34 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Atmos Energy as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • ATMOS ENERGY CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ATMOS ENERGY CORP increased its bottom line by earning $3.09 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $3.09).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.22 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Gas Utilities industry and the overall market on the basis of return on equity, ATMOS ENERGY CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has slightly increased to $118.94 million or 8.34% when compared to the same quarter last year. Despite an increase in cash flow of 8.34%, ATMOS ENERGY CORP is still growing at a significantly lower rate than the industry average of 525.29%.

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