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.
NiSource (NI) to Benefit From Investments & Clean Assets
Read MoreHide Full Article
NiSource Inc’s (NI - Free Report) investment in modernizing infrastructure will further enhance the reliability of its natural gas and electric operations. Addition of clean assets in generation portfolio is expected to further drive its performance.
However, this Zacks Rank #2 (Buy) stock has to face risks related to delay in the completion of capital projects.
Tailwinds
NI is working on a long-term utility infrastructure modernization program. It made capital investments worth $1.9 billion in 2021. The company invested $2.6 billion in 2022 and expects to invest $3.3-$3.6 billion in 2023. NiSource projects an investment of approximately $15 billion during 2023-2027, including capital investments to support generation transition strategy.
The company has a 100% regulated utility business model. NI’s planned investments will 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 its capital expenditure starts delivering returns in less than 18 months of investment.
Headwinds
Risks related to any delay in the completion of capital projects, interest rate increases and the failure of aging infrastructure are potential headwinds for the company. Despite efforts made by NiSource to maintain its assets through inspection and scheduled maintenance, the old machineries are likely to falter, resulting in unplanned outages. These, in turn, are likely to have an adverse impact on the company’s operation, impacting its utility revenues and margins.
IDACORP’s long-term (three to five year) earnings growth rate is pinned at 3.68%. It delivered an average earnings surprise of 4.6% in the last four quarters.
OGE Energy’s long-term earnings growth rate is pegged at 17.89%. It delivered an average earnings surprise of 19.92% in the previous four quarters.
NRG Energy’s long-term earnings growth rate is pinned at 6.5%. The Zacks Consensus Estimate for NRG’s 2023 earnings per share indicates an increase of 140.84%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NiSource (NI) to Benefit From Investments & Clean Assets
NiSource Inc’s (NI - Free Report) investment in modernizing infrastructure will further enhance the reliability of its natural gas and electric operations. Addition of clean assets in generation portfolio is expected to further drive its performance.
However, this Zacks Rank #2 (Buy) stock has to face risks related to delay in the completion of capital projects.
Tailwinds
NI is working on a long-term utility infrastructure modernization program. It made capital investments worth $1.9 billion in 2021. The company invested $2.6 billion in 2022 and expects to invest $3.3-$3.6 billion in 2023. NiSource projects an investment of approximately $15 billion during 2023-2027, including capital investments to support generation transition strategy.
The company has a 100% regulated utility business model. NI’s planned investments will 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 its capital expenditure starts delivering returns in less than 18 months of investment.
Headwinds
Risks related to any delay in the completion of capital projects, interest rate increases and the failure of aging infrastructure are potential headwinds for the company. Despite efforts made by NiSource to maintain its assets through inspection and scheduled maintenance, the old machineries are likely to falter, resulting in unplanned outages. These, in turn, are likely to have an adverse impact on the company’s operation, impacting its utility revenues and margins.
Other Stocks to Consider
Some other top-ranked stocks from the same industry are IDACORP, Inc (IDA - Free Report) and OGE Energy Corp. (OGE - Free Report) , both carrying a Zacks Rank #2, and NRG Energy, Inc. (NRG - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
IDACORP’s long-term (three to five year) earnings growth rate is pinned at 3.68%. It delivered an average earnings surprise of 4.6% in the last four quarters.
OGE Energy’s long-term earnings growth rate is pegged at 17.89%. It delivered an average earnings surprise of 19.92% in the previous four quarters.
NRG Energy’s long-term earnings growth rate is pinned at 6.5%. The Zacks Consensus Estimate for NRG’s 2023 earnings per share indicates an increase of 140.84%.