Atmos Energy (US:ATO) ZACKS·2025-12-30 15:20Economic Overview - Consumer confidence in the United States fell to 89.1 in December, a decline of 3.8 points from November's 92.9, indicating growing concerns over jobs and income amid a weakening economy [4][10] - The Present Situation Index dropped 9.5 points to 116.8, reflecting a negative assessment of current business and labor market conditions [4] - The Expectations Index remained unchanged at 70.7, staying below the 80 mark for 11 consecutive months, which signals a potential recession [5] Federal Reserve Actions - The Federal Reserve cut interest rates by 25 basis points three times in the current year but indicated only one rate cut for the next year due to persistent high inflation [5][6] Market Trends - A significant tech selloff has occurred, with investors offloading tech stocks due to concerns over profitability against high valuations, leading to a loss of momentum in the tech rally [6][10] Investment Recommendations - Investors are advised to focus on low-beta, defensive stocks from the utility and consumer staples sectors to mitigate market volatility [2][10] - Recommended stocks include: - Atmos Energy Corporation (ATO): Expected earnings growth rate of 6.7%, beta of 0.75, and a dividend yield of 2.38% [8][7] - American States Water Company (AWR): Expected earnings growth rate of 5.1%, beta of 0.70, and a dividend yield of 2.76% [12][11] - Sempra (SRE): Expected earnings growth rate of 12.1%, beta of 0.73, and a dividend yield of 2.91% [13] - Ingredion Incorporated (INGR): Expected earnings growth rate of 1.6%, beta of 0.72, and a dividend yield of 2.94% [14]