We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add NiSource (NI) to Your Portfolio Now
Read MoreHide Full Article
NiSource Inc.’s (NI - Free Report) systematic investment plans to modernize infrastructure should further enhance the reliability of its operations. The company continues to add clean assets to its portfolio, which helps boost its overall performance. Given its growth opportunities, NiSource makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.6% to $1.72 in the past 60 days.
NiSource’s long-term (three to five years) earnings growth rate is 6%. It delivered an average earnings surprise of 20.6% in the past four quarters.
Debt Position
Currently, NiSource’s total debt to capital is 57.85%, better than the industry’s average of 62.45%.
The time-to-interest earned ratio at the end of the second quarter of 2024 was 2.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
NiSource has been consistently paying dividends to its shareholders. Currently, NiSource’s quarterly dividend is 26.5 cents per share, resulting in an annualized dividend of $1.06, up 6% from the previous level of $1. The company expects an annual dividend payout ratio of 60-70%. Its current dividend yield is 3.38%, better than the Zacks S&P 500 composite’s 1.3%.
Systematic Investments
NiSource continues to work on a long-term utility infrastructure modernization program. The company expects investments to be in the range of $3.3-$3.5 billion for 2024. It also projects an investment of $16.4 billion during 2024-2028. NiSource anticipates an annual rate base growth of 8-10% during 2023-2028, driven by its capital expenditures.
Its planned regulated investments should improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base. More than 75% of NiSource’s capital expenditure starts providing returns in less than 18 months of investment.
Price Performance
In the past three months, the stock has returned 9.3% against the industry’s decline of 0.1%.
EXC’s long-term earnings growth rate is 5.66%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 2.1% from the bottom line recorded in 2023.
PPL’s long-term earnings growth rate is 6.82%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 7.5% from the bottom line recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS improved 4.2% over the past 30 days. The company delivered an average earnings surprise of 98% in the trailing four quarters.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Add NiSource (NI) to Your Portfolio Now
NiSource Inc.’s (NI - Free Report) systematic investment plans to modernize infrastructure should further enhance the reliability of its operations. The company continues to add clean assets to its portfolio, which helps boost its overall performance. Given its growth opportunities, NiSource makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.6% to $1.72 in the past 60 days.
NiSource’s long-term (three to five years) earnings growth rate is 6%. It delivered an average earnings surprise of 20.6% in the past four quarters.
Debt Position
Currently, NiSource’s total debt to capital is 57.85%, better than the industry’s average of 62.45%.
The time-to-interest earned ratio at the end of the second quarter of 2024 was 2.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
NiSource has been consistently paying dividends to its shareholders. Currently, NiSource’s quarterly dividend is 26.5 cents per share, resulting in an annualized dividend of $1.06, up 6% from the previous level of $1. The company expects an annual dividend payout ratio of 60-70%. Its current dividend yield is 3.38%, better than the Zacks S&P 500 composite’s 1.3%.
Systematic Investments
NiSource continues to work on a long-term utility infrastructure modernization program. The company expects investments to be in the range of $3.3-$3.5 billion for 2024. It also projects an investment of $16.4 billion during 2024-2028. NiSource anticipates an annual rate base growth of 8-10% during 2023-2028, driven by its capital expenditures.
Its planned regulated investments should improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base. More than 75% of NiSource’s capital expenditure starts providing returns in less than 18 months of investment.
Price Performance
In the past three months, the stock has returned 9.3% against the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Exelon Corporation (EXC - Free Report) , PPL Corporation (PPL - Free Report) and TransAlta (TAC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EXC’s long-term earnings growth rate is 5.66%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 2.1% from the bottom line recorded in 2023.
PPL’s long-term earnings growth rate is 6.82%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 7.5% from the bottom line recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS improved 4.2% over the past 30 days. The company delivered an average earnings surprise of 98% in the trailing four quarters.