We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Stock to Your Portfolio Now
Read MoreHide Full Article
NiSource Inc.’s (NI - Free Report) strategic 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.
NI’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 3.2% to $1.91 in the past 60 days.
The Zacks Consensus Estimate for 2025 sales is pinned at $5.99 billion, indicating a year-over-year increase of 9.9%.
NiSource’s long-term (three to five years) earnings growth rate is 8.15%. The company delivered a trailing four-quarter average earnings surprise of 23%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 56.68%, better than the industry’s average of 60.39%.
The time-to-interest earned ratio at the end of the fourth quarter of 2024 was 2.9. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
NI’s Dividend Growth
The company has been consistently increasing the value of its shareholders through dividends. It expects to deliver a 9-11% annual return over the long term. Currently, NiSource’s quarterly dividend is 28 cents per share. This represents an annualized dividend of $1.12 per share, up 6% from the previous level. The company expects a targeted annual dividend payout ratio of 60-70%. Its current dividend yield is 2.82%, better than the Zacks S&P 500 composite's average of 1.18%.
NI’s Systematic Investments
The company is working on a long-term utility infrastructure modernization program. NiSource made capital investments worth $3.3 billion in 2024. It expects investments in the range of $4-$4.3 billion for 2025 and also projected an investment of $19.4 billion for the 2025-2029 period.
NI has a 100% regulated utility business model. 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.
NI’s Share Price Performance
In the past three months, the stock has returned 7.8% against the industry’s decline of 2.7%.
NEE’s long-term earnings growth rate is 7.78%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 7.3% from the bottom line recorded in 2024.
EXC’s long-term earnings growth rate is 5.71%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 5.2% from the bottom line recorded in 2024.
CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 8%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Here's Why You Should Add NiSource Stock to Your Portfolio Now
NiSource Inc.’s (NI - Free Report) strategic 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.
NI’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 3.2% to $1.91 in the past 60 days.
The Zacks Consensus Estimate for 2025 sales is pinned at $5.99 billion, indicating a year-over-year increase of 9.9%.
NiSource’s long-term (three to five years) earnings growth rate is 8.15%. The company delivered a trailing four-quarter average earnings surprise of 23%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 56.68%, better than the industry’s average of 60.39%.
The time-to-interest earned ratio at the end of the fourth quarter of 2024 was 2.9. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
NI’s Dividend Growth
The company has been consistently increasing the value of its shareholders through dividends. It expects to deliver a 9-11% annual return over the long term. Currently, NiSource’s quarterly dividend is 28 cents per share. This represents an annualized dividend of $1.12 per share, up 6% from the previous level. The company expects a targeted annual dividend payout ratio of 60-70%. Its current dividend yield is 2.82%, better than the Zacks S&P 500 composite's average of 1.18%.
NI’s Systematic Investments
The company is working on a long-term utility infrastructure modernization program. NiSource made capital investments worth $3.3 billion in 2024. It expects investments in the range of $4-$4.3 billion for 2025 and also projected an investment of $19.4 billion for the 2025-2029 period.
NI has a 100% regulated utility business model. 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.
NI’s Share Price Performance
In the past three months, the stock has returned 7.8% against the industry’s decline of 2.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are NextEra Energy (NEE - Free Report) , Exelon Corporation (EXC - Free Report) and CenterPoint Energy (CNP - 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.
NEE’s long-term earnings growth rate is 7.78%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 7.3% from the bottom line recorded in 2024.
EXC’s long-term earnings growth rate is 5.71%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 5.2% from the bottom line recorded in 2024.
CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 8%.