Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of Atmos Energy (ATO) and Southwest Gas (SWX) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven str ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?The Zack ...

Atmos Energy Corporation’s (ATO) strategic investment plans should further increase the safety and reliability of natural gas pipelines, distribution and transportation systems and drive its performance. Given its growth opportunities, ATO is a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has i ...

Concerns over inflation and fears of interest rate hikes came back, haunting investors on May 22 after the minutes of the Federal Open Market Committee’s (FOMC) Apr 30-May 1 policy meeting were released.The minutes revealed that the Federal Reserve remains concerned over rising inflation, which created panic among investors, leading to a massive selloff. All three major indexes that were on a rally retreated sharply, with the Dow recording its worst session in May, after hitting an all-time high last week.T ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are t ...

Core Viewpoint - Major U.S. stocks experienced a slight decline on May 16 after reaching record highs, as investor enthusiasm around interest rate cuts and slowing inflation waned [1] Group 1: Investment Recommendations - Recommended stocks include Vital Farms (VITL), Pathward Financial (CASH), Atmos Energy (ATO), Sprouts Farmers Market (SFM), and Hamilton Insurance Group (HG), all characterized by low leverage [1] - Low-leverage stocks are suggested as a strategy to protect investors from significant losses during economic downturns [2] Group 2: Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing [1] - Excessive debt financing can lead to considerable losses, making it crucial for investors to avoid companies with high debt levels [2] Group 3: Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric indicating a company's financial risk, with lower ratios reflecting better solvency [3] - High debt-to-equity ratios can turn positive earnings into negative outcomes during economic downturns [3] Group 4: Stock Selection Strategy - A prudent investment strategy involves selecting stocks with low debt-to-equity ratios to ensure steady returns [4] - Additional screening criteria include being less leveraged than industry peers, trading at a minimum price of $10, and having substantial trading volume [5] Group 5: Performance Metrics - Stocks should exhibit earnings growth greater than the industry median, a VGM Score of A or B, and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) for optimal upside potential [6] - Excluding stocks with negative or zero debt-to-equity ratios, five stocks have been identified as potential investments [6] Group 6: Company Highlights - **Vital Farms (VITL)**: Reported a 24.1% year-over-year increase in net revenues to $147.9 million and a 168.8% rise in earnings per share to 43 cents, with a Zacks Rank of 1 [7] - **Pathward Financial (CASH)**: Announced an expansion of its offerings for financial institutions, with a Zacks Rank of 2 and a projected 6.5% sales improvement for 2024 [8] - **Atmos Energy (ATO)**: Reported earnings per share of $4.93, up from $4.40 year-over-year, with a long-term earnings growth rate of 7% and a Zacks Rank of 2 [9] - **Sprouts Farmers Market (SFM)**: Achieved a 9% year-over-year increase in net sales, with a long-term earnings growth rate of 9% and a Zacks Rank of 1 [9] - **Hamilton Insurance (HG)**: Experienced a 35.7% year-over-year increase in net premiums earned, with a Zacks Rank of 1 and a projected 41.5% sales improvement for 2024 [10]

An ill-informed investor can lose cash if he wagers on a stock only on the basis of the numbers flashing on a real-time stock screen. A critical analysis of a company’s financial background is a must for a better investment decision, especially at a time when the stock market is juggling myriad issues.Often, investors evaluate a company’s performance by simply looking at its sales and earnings, which sometimes do not reveal the real picture. To be more precise, they do not tell whether a company’s fundament ...

Core Viewpoint - The article highlights Atmos Energy (ATO) as a promising growth stock, supported by its favorable Growth Score and Zacks Rank, indicating strong potential for investors seeking growth opportunities [1][6]. Earnings Growth - Atmos Energy has a historical EPS growth rate of 8.7%, with projected EPS growth of 9% for the current year, significantly outperforming the industry average of 2.1% [3]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 13.2%, surpassing the industry average of 4.3%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.9%, compared to the industry average of 9.2% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Atmos, with the Zacks Consensus Estimate for the current year increasing by 2.5% over the past month, indicating strong near-term stock price movements [5]. Overall Assessment - Atmos Energy has achieved a Growth Score of A and holds a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [6][7].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Sc ...

The sentiment of American consumers on the economy has plunged in May. On May 10, the University of Michigan reported that the preliminary index of consumer sentiment tumbled to a reading of 67.4%. The consensus estimate was 76%. The final reading of April was also revised downward to 77.2% from 77.9%, as reported earlier.May’s preliminary reading marks a 12.7% decline in month over month. The primary reason for this decline was a sharp increase in consumers’ expectations for the inflation rate.The outlook ...