Atmos Energy Corporation (ATO)

Atmos Energy stock forecast: buy or sell

Atmos Energy stock outlook

  • Counting today, it's been 3 consecutive sessions in green for Atmos Energy. Price closed today at $100.43 after just moving a 0.74%.
  • Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States.
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Please read:
The comments expressed in this post are personal and not recommendations for you to buy or sell shares. The author of this article does not know the individual positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for learning motives only

Atmos Energy stock chart overview

Should I buy Atmos Energy stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ATO stock a buy?

Currently, Atmos Energy stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean ATO will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Atmos Energy stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our personal feelings or the buzz that surrounds the market. When selling, as well as buying, our strategies are very simple to use but are only valid for selling stocks in your porfolio, not for selling short Atmos Energy stock

As a rule of thumb, you must never keep an open trade that shows a losses greater than those expected at the time of the buy. The moment to sell your stock should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Atmos Energy stock?

In the current situation of Atmos Energy there is not any eligible sell setup, so Atmos Energy stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Atmos Energy stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one brokerage rating was published for Atmos Energy

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Atmos Energy ratings

Brokerage firmRating
Jun 17th, 2020
Morgan Stanley

Technical analysis

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Market investors use support and resistance levels to identify price points in the stock price action that tend to behave as glass ceiling, preventing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until meeting another support level. In contrast, a resistance level is where the price tends to find opposition as it rises. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, it will rally more easily until it finds the next resistance

The current resistances are:

  • R1: $101.41 (0.98% above)
  • R2: $103.52 (3.08% above)
  • R3: $104.01 (3.56% above)
  • The current supports are:

  • S1: $97.14 (-3.28% below)
  • S2: $96.73 (-3.68% below)
  • S3: $96.14 (-4.27% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread practice introduced by John Bollinger. Essentially, the Bollinger Bands are lines that fluctuate around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving very close to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to chart the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    When the relative strength (RSI) fluctuates for so long below 70 and above 30, without signaling moments of overbought and oversold, the indicator becomes of little use, and we currently are in such a case.

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    Earnings and financials

    Atmos Energy Corporation (ATO) posted quarterly earnings of $1.95 per share, meeting the Wall St consensus estimate of $1.92 per share. Estimated revenue for this quarter was $1.2 billion but Atmos Energy failed to match by 17.15%, posting $977.7 million.

    Same quarter last year, reported EPS was $1.82, so current EPS is a gain of 7.14%. Revenue fell a -10.31% on an annualized basis in the 1st-quarter, from $1.1B to $977.7M last quarter.

    Atmos Energy posts quarterly earnings report on early next August. Wall Street forecasts a per-share earnings of %s of $0.76, compared to Q1 that made $1.95. Earnings reporting day has a more than usual risk for stock investors as the data posted can soar and sink the shares price with very low volume and not respecting your buy/stop-loss orders. Have a look company's website to confirm time and details about the earnings call and the earnings report.

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