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Today's Featured Story Utility Gas Inflation Is Soaring. This Stock Is a Clear WinnerBy Jordan Chussler. First Published: 1/20/2026. 
Summary - Last month’s Consumer Price Index report showed inflation for piped utility has increased 10.8% year-over-year.
- That bodes well for Atmos Energy, the largest natural-gas-only utility in the United States.
- Over the past year, the stock’s 17% gain has outperformed the S&P 500 while its dividend is on the verge of joining an exclusive club.
On Jan. 13, the U.S. Bureau of Labor Statistics released December's Consumer Price Index data, showing headline inflation rose 2.7% year over year (YOY). There were some bright spots — gasoline prices fell 3.4% YOY — but one figure stood out: piped utility gas services jumped 10.8% YOY. That's bad news for Americans already facing elevated utility bills as winter heating demand climbs, but it could be positive for shareholders of the largest natural-gas-only utility in the United States. Why Utility Gas Prices Are Surging The 10.8% rise isn't unique to the U.S. Utility gas prices are climbing globally as demand for liquefied natural gas (LNG) surges. Although the U.S. benchmark has eased about 2.94% so far this year, European and U.K. benchmarks have risen roughly 25% and 26%, respectively. More recently, U.S. LNG futures have surged 17% since Jan. 16 amid an Arctic blast that has kept much of the mainland United States below freezing. Prices have been driven higher by constrained domestic supply, higher production costs, and increased U.S. LNG exports. On Jan. 2, Reuters reported that in 2025 the United States became the first country to export more than 100 million metric tons of LNG in a year. Another structural source of demand is AI data centers, which rely on LNG — among other energy inputs — for power generation and cooling. According to Natural Gas Intelligence, data centers currently consume more than 1 billion cubic feet per day (Bcf/d) of natural gas, with forecasts projecting consumption to rise to between 4 and 8 Bcf/d by 2030. All of this should continue to benefit investors who have identified companies positioned to profit from the resulting supply-demand imbalance. A 120-Year-Old Utility Company That Packs a Growth Punch Founded in 1906 as the Amarillo Gas Company, Atmos Energy (NYSE: ATO) — now headquartered in Dallas — delivers natural gas to more than 3.3 million residential, commercial, and industrial customers across nine states through an extensive pipeline network for heating, cooking, and industrial processes. The utility serves roughly 1,400 communities from the Blue Ridge Mountains to the Rocky Mountains. Core services include gas delivery, system integrity and maintenance, storage and transmission connections, and customer programs such as billing, conservation, and energy-efficiency initiatives. Over the last fiscal year, Atmos Energy's earnings per share (EPS) rose more than 9.2%, revenue grew nearly 13%, and net income increased almost 15%. Financial results reflect the company's operational strength. That performance has helped ATO's stock remain in TradeSmith's "Green Zone" for over 12 months; the stock has gained more than 17% during that period and over 47% since the start of 2025. Meanwhile, it continues to reward shareholders with a long history of dividend increases. A Dividend Aristocrat With a 41-Year Track Record Utilities are often viewed as defensive investments with modest price appreciation and reliable dividends. Atmos Energy bucks that stereotype: its one-year gain has outpaced the S&P 500's roughly 14%, behaving more like a growth stock while still delivering income. Atmos, a Dividend Aristocrat, yields 2.35% — about $4 per share annually — and has increased its payout for 41 consecutive years. Its annualized five-year dividend growth rate is 8.63%, and a dividend payout ratio just over 53% is considered healthy and sustainable. What Wall Street Thinks About Atmos Energy Among 14 analysts covering the stock, the consensus rating is Hold: three analysts rate it Buy, 11 rate it Hold, and none rate it Sell. The average 12-month price target implies only about 1.67% upside. Atmos Energy's trailing EPS of $7.49 and price-to-earnings (P/E) ratio of 22.75 imply analysts expect earnings to climb roughly 7.66% next year, from $7.18 to $7.73 per share. Earnings forecasts reflect modest growth expectations. Institutional ownership is higher than average at 90.17%, with inflows of $4.62 billion outpacing outflows of $2.82 billion. Current short interest is 3.19% of the float, indicating limited bearish bets against the company. Atmos Energy scores higher than 88% of the companies evaluated by MarketBeat and ranks 26th out of 89 stocks in the utilities sector.
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