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This Month's Bonus Article Utility Gas Inflation Is Soaring. This Stock Is a Clear WinnerWritten by Jordan Chussler. Article Published: 1/20/2026. 
Article Highlights - 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 at a year-over-year (YOY) pace of 2.7%. While some categories were brighter — gasoline fell 3.4% year over year — other figures stood out. Piped utility gas services registered a staggering 10.8% YOY increase. The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. That isn't good news for Americans already facing elevated utility bills, especially as the thick of winter arrives and home heating needs increase. But it could be positive for shareholders of the largest natural gas-only utility in the United States. Why Utility Gas Prices Are Surging While a 10.8% YOY increase is unwelcome for consumers, it's not limited to the U.S. Global utility gas prices are climbing due to surging demand, particularly for liquefied natural gas (LNG). Despite the U.S. benchmark easing about 2.9% 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 left much of the mainland United States under freezing conditions. Prices have been pushed higher by limited domestic supply that has struggled to keep pace with demand, 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. There's also rising demand from 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 between 4 Bcf/d and 8 Bcf/d by 2030. All told, these dynamics should continue to benefit investors who have identified the companies positioned to profit from the supply-demand gap. 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 used for heating, cooking, and industrial processes. The utility serves about 1,400 communities from the Blue Ridge Mountains to the Rocky Mountains. Its core services include gas delivery, system integrity and maintenance, storage and transmission connections, and customer programs such as billing, conservation, and energy-efficiency offerings. Over the past fiscal year, Atmos Energy has seen earnings per share (EPS) rise more than 9.22%, revenue increase nearly 13%, and net income climb nearly 15%. That performance has helped ATO's stock stay in the Green Zone, according to TradeSmith, for over 12 months. The stock has gained more than 17% during that period and over 47% since the start of 2025. Meanwhile, the company continues to reward shareholders year after year with its dividend. A Dividend Aristocrat With a 41-Year Track Record As a utility stock, Atmos Energy defies some common stereotypes. Utilities are often viewed as defensive investments with modest share appreciation but above-average dividend yields. In Atmos Energy's case, only part of that stereotype holds. With a one-year gain outpacing the S&P 500's roughly 14% return, the company has behaved more like a growth stock. On the income side, it still delivers. The Dividend Aristocrat yields 2.35% — about $4 per share annually — and has increased its payout for 41 consecutive years. ATO's annualized five-year dividend growth rate is 8.63%, and its dividend payout ratio of just over 53% is considered healthy and sustainable. What Wall Street Thinks About Atmos Energy Among 14 analysts covering the stock, Atmos Energy carries a consensus Hold rating: three Buys, 11 Holds, and zero Sells. While 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 earnings growth of roughly 7.66% next year, from $7.18 to $7.73 per share. Institutional ownership is a higher-than-average 90.17%, with inflows of $4.62 billion outpacing outflows of $2.82 billion. Current short interest of 3.19% of the float suggests limited bearish interest in the stock. Atmos Energy scores higher than 88% of companies evaluated by MarketBeat and ranks 26th out of 89 stocks in the utilities sector.
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