Paris, France – September 29, 2025 – Eviden, the Atos Group product brand leading in advanced computing, cybersecurity products, mission-critical systems and vision AI today announces a strategic partnership with Vates, a pioneering company in open-source virtualization solutions, to provide a European reliable, efficient, and future-proof virtualization solution, ready to meet real-world infrastructure demands. In a context where sovereignty, transparency, and control are increasingly strategic, this partn ...

Core Viewpoint - Atmos Energy (ATO) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Atmos suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - The system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 20% receive a "Strong Buy" or "Buy" rating [9][10]. Specifics for Atmos Energy - Atmos is projected to earn $7.33 per share for the fiscal year ending September 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2% over the past three months [8].

Core Insights - Atmos Energy Corporation (ATO) is positioned as a strong investment option in the utility sector due to strategic acquisitions, the addition of industrial customers, and favorable rate outcomes contributing to revenue and profitability growth [1] Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.2% to $7.33 over the past 90 days [2] - The estimated sales for fiscal 2025 are projected at $4.81 billion, reflecting a year-over-year increase of 15.6% [2] - ATO's long-term earnings growth rate is forecasted at 7.32%, with an average earnings surprise of 1.7% over the last four quarters [2] Liquidity Position - Atmos Energy's current ratio stands at 1.37, significantly higher than the industry average of 0.54, indicating sufficient short-term assets to cover liabilities [3] Debt Management - ATO's total debt to capital ratio is 40.21%, which is better than the industry average of 51.09% [4] - The time-to-interest earned ratio is 8.6, demonstrating the company's capability to meet future interest obligations comfortably [4] Capital Investments - Atmos Energy has a robust capital expenditure plan, with $3.7 billion earmarked for fiscal 2025 and a total of $24 billion planned over the next five years to enhance pipeline safety and reliability [5][6] - This investment strategy is expected to yield annual earnings growth of 6-8% during the same period [6] Dividend Policy - ATO currently pays a quarterly dividend of 87 cents per share, resulting in an annualized dividend of $3.48, up from $3.22 the previous year [7] - The company aims to increase its dividend by 6-8% annually through fiscal 2026, subject to board approval, with a current dividend yield of 2.09% [7] Stock Performance - Over the past year, Atmos Energy's shares have appreciated by 20.8%, outperforming the industry's growth of 8.2% [9]

Core Insights - Atos has been awarded a significant cybersecurity contract valued at a maximum of €326 million under the European Commission's CLOUD II Dynamic Purchasing System for Technical Operations Services [1][2][3] - The contract will prioritize essential cybersecurity services for European Union institutions, focusing on operational support, advisory guidance, and capability development [2][3] - Atos will collaborate with Leonardo as a consortium partner to deliver high standards of resilience and operational excellence in cybersecurity [3] Company Overview - Atos Group is a global leader in digital transformation with approximately 70,000 employees and annual revenue of around €10 billion, operating in 67 countries [4] - The company is recognized as the European leader in cybersecurity, cloud, and high-performance computing, committed to a secure and decarbonized future [4] - Atos provides tailored AI-powered, end-to-end solutions across various industries [4][5] Contract Details - The framework contract may extend for up to 48 months and encompasses various Technical Operations Services [3] - Services include Incident Response and Digital Forensics, Threat Intelligence and Monitoring, Malware Analysis, and Offensive Security [7]

Core Viewpoint - Atmos Energy Corporation (ATO) is a leading regulated natural gas distributor in the U.S., with a strong market presence and stable earnings model, focusing on modernization and safety investments [1][2]. Company Overview - Atmos Energy has a market capitalization of $26.2 billion and serves over 3.3 million customers across more than 1,400 communities in several states [1]. - The company is categorized as a large-cap stock, reflecting its significant size and influence in the regulated gas utilities sector [2]. Financial Performance - ATO reported a 19.6% year-over-year increase in revenue for Q3, totaling $838.8 million, slightly exceeding estimates [5]. - Earnings per share (EPS) for the quarter matched forecasts at $1.16, while net income rose 12.6% to $186.4 million, driven by customer growth and substantial infrastructure investments [5]. - The company has raised its full-year EPS outlook to between $7.35 and $7.45 and declared a dividend of $0.87 [5]. Stock Performance - ATO shares have seen a 3.6% increase following the Q3 results announcement [5]. - Year-to-date, ATO shares have risen 16.6%, and over the past 52 weeks, they have climbed 19%, outperforming the Utilities Select Sector SPDR Fund (XLU) [4]. - Despite a recent retreat of 3.8% from a 52-week high of $168.86, ATO stock has gained 6.6% over the past three months [3][4]. Investment Strategy - A significant portion of Atmos Energy's strategy is focused on system modernization and safety, with $2.6 billion in infrastructure investments, 86% of which are aimed at enhancing safety and reliability [5].

Industry Overview - Natural gas distribution companies transport natural gas from production regions to consumers across the U.S., with a significant underground pipeline network of 2.6 million miles [2] - The shale revolution has increased natural gas production, leading to higher demand due to its clean-burning nature [2] - The U.S. has 3,353 trillion cubic feet of natural gas, and the industry faces challenges such as aging infrastructure and rising investment costs due to interest rate hikes [2] Future Outlook - The U.S. Energy Information Administration (EIA) projects that domestic dry natural gas production will increase in 2025, particularly in the Permian Basin [3] - EIA expects U.S. liquefied natural gas (LNG) export volumes to rise by 25% year-over-year in 2025 and by 6.7% in 2026, highlighting the importance of gas pipelines for transportation to export terminals [3] Interest Rate Impact - The Federal Reserve's recent interest rate cut of 100 basis points to a range of 4.25-4.5% is expected to benefit capital-intensive utilities, allowing for easier access to financing for infrastructure upgrades [4] - Further rate cuts are anticipated in 2026, which would positively impact utility operators planning large investments [4] Competitive Landscape - Natural gas faces increasing competition from renewable energy sources, which are becoming cheaper and more reliable due to advancements in technology and battery storage [5] - The rise of on-site generation reduces reliance on long-distance infrastructure, posing economic risks for new pipeline investments [5] Industry Performance - The Zacks Utility Gas Distribution industry currently ranks 190, placing it in the bottom 22% of the 245 Zacks industries, indicating weak near-term prospects [6] - Earnings estimates for the industry have decreased by 20.9% since September 31, 2024, reflecting a negative outlook [7] Stock Market Performance - Over the past year, the Gas Distribution industry has gained 6.5%, outperforming the Utility sector's growth of 5.4% but lagging behind the Zacks S&P 500 composite's 19.9% increase [9] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA ratio of 11.28X, compared to 18.35X for the Zacks S&P Composite 500 and 15.06X for the sector [12] - Historical trading ranges for the industry have been between 9.55X and 12.4X, with a median of 10.9X over the past five years [12] Company Highlights - **Sempra Energy (SRE)**: Plans to invest $56 billion from 2025-2029, with a current dividend yield of 3.09% and long-term earnings growth projected at 7.01% [18][19] - **Atmos Energy (ATO)**: Invested $2.94 billion in fiscal 2024 and plans to invest $3.7 billion in fiscal 2025, with a current dividend yield of 2.1% and long-term growth of 7.32% [22][23] - **New Jersey Resources (NJR)**: Aims to invest $650-$770 million in fiscal 2025 and $655-$835 million in fiscal 2026, with a current dividend yield of 3.82% [26][27] - **ONE Gas Inc. (OGS)**: Plans to invest $4 billion through 2029, with a current dividend yield of 3.53% and long-term growth projected at 5.56% [30][31]

Core Viewpoint - The stock market is currently at a critical juncture, making it challenging to predict the outlook for 2026 [1] Group 1 - The current state of the stock market indicates significant uncertainty, which could impact investment strategies moving forward [1] - Analysts are divided on the potential direction of the market, reflecting a range of opinions on economic indicators and corporate performance [1] - The inflection point suggests that investors should closely monitor market trends and economic data to make informed decisions [1]

Economic Overview - Wall Street has shown resilience despite fears of a weakening economy, although major indexes have experienced volatility recently [1][2] - The U.S. economy added only 22,000 jobs in August, significantly below the consensus estimate of 75,000, with the unemployment rate rising to 4.3% [5][6] - Consumer confidence has declined, with a drop from 98.7 in July to 97.4 in August [9] Federal Reserve and Interest Rates - Hopes for a rate cut by the Federal Reserve in September have somewhat improved investor sentiment, with an 89% chance of a 25 basis point cut anticipated [8] - Inflation has decreased but remains a concern due to new tariffs imposed by President Trump, which have created additional price pressures [7][8] Investment Recommendations - It is advisable to focus on low-beta, defensive stocks, particularly in the utilities sector, to navigate current market volatility [3][4] - Recommended stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 7.3%, dividend yield of 2.09%, beta of 0.75 [11][13] - **OGE Energy (OGE)**: Expected earnings growth of 4.1%, dividend yield of 3.2%, beta of 0.60 [11][14] - **Fortis, Inc. (FTS)**: Expected earnings growth of 4.6%, dividend yield of 3.61%, beta of 0.48 [11][15] - **Northwest Natural Holding Company (NWN)**: Expected earnings growth of 25.3%, dividend yield of 4.68%, beta of 0.59 [11][17]

Core Insights - The inauguration of the JUPITER Booster, an AI-dedicated partition, marks a significant advancement in high-performance computing (HPC) and AI capabilities in Europe [1][2][4] - JUPITER is recognized as Europe's most powerful HPC and AI system, with the ability to perform over one quintillion calculations per second, equivalent to the power of 10 million modern desktop computers [2][3] - The JUPITER system integrates advanced technologies, including 24,000 NVIDIA GH200 Grace Hopper Superchips and Direct Liquid Cooling technology, achieving exceptional energy efficiency and performance [4] Company Overview - Eviden, a brand of Atos Group, specializes in advanced computing, cybersecurity products, mission-critical systems, and vision AI, generating approximately €1 billion in revenue and operating in 36 countries [7] - Atos Group, with around 70,000 employees and annual revenue of approximately €10 billion, is a leader in digital transformation and is committed to a secure and decarbonized future [8] Technological Impact - JUPITER's capabilities will enhance research in various fields, including climate science, sustainable energy, and AI, enabling unprecedented innovation across Europe [5][13] - The supercomputer's power allows for detailed simulations in climate modeling and brain research, significantly improving understanding of extreme weather events and neurodegenerative diseases [13]

Economic Overview - U.S. consumer confidence dropped to 97.4 in August from 98.7 in July, indicating a decline of 1.3 points, with short-term expectations for income, business conditions, and employment also falling to 74.8 [4][5] - Concerns about the economy have been exacerbated by tariffs imposed by President Trump, which have raised inflation fears and impacted consumer confidence [5][6] - A weak labor market, characterized by slow job additions, has further fueled recession fears, despite low layoffs and unemployment rates [7] Investment Recommendations - Given the economic uncertainty, it is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), Northwest Natural Holding Company (NWN), Ingredion Incorporated (INGR), and Carriage Services, Inc. (CSV) [2][10] - These stocks are characterized by a beta greater than 0 but less than 1, indicating lower volatility, and they also offer high dividend yields [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.2% for the current year, with a beta of 0.75 and a dividend yield of 2.09% [8][9] - **Fortis, Inc. (FTS)**: Operates in the electric and gas utility sector, primarily in Canada and the Caribbean. Expected earnings growth rate is 4.6% for the current year, with a beta of 0.48 and a dividend yield of 3.57% [10][11] - **Northwest Natural Holding Company (NWN)**: Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a beta of 0.59 and a dividend yield of 4.72% [12][13] - **Ingredion Incorporated (INGR)**: Provides ingredient solutions specializing in nature-based sweeteners and starches, serving various sectors. Expected earnings growth rate is 6.7% for the current year, with a beta of 0.77 and a dividend yield of 2.47% [14] - **Carriage Services, Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. Expected earnings growth rate is 23.4% for the current year, with a beta of 0.86 and a dividend yield of 1.03% [15][16]