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Reasons to Add NiSource (NI) to Your Portfolio Right Now
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NiSource Inc. (NI - Free Report) is a utility company that provides natural gas and electricity services in the United States. The company focuses on providing safe, reliable and clean energy through consistent investments in infrastructure.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for NI’s 2023 earnings per share (EPS) is pegged at $1.57. This indicates a year-over-year increase of 6.8%.
The company’s long-term (three- to five-year) earnings growth is pegged at 6.9%.
Return on Equity (ROE)
ROE indicates how efficiently a company utilizes its funds to generate higher returns. NI’s ROE is currently pegged at 11.14%, higher than the industry’s average of 9.65%, which indicates that the company is utilizing its funds more efficiently than peers.
Debt Position & Liquidity
NiSource’s times interest earned ratio at the end of first-quarter 2023 was 3.2. The strong ratio indicates that the company will be able to meet debt obligations in the near future without any difficulties.
The company had $2.3 billion net liquidity available as of Mar 31, 2023, which is adequate to meet its debt obligations.
Dividend History
The utility company has been consistently paying dividends to its shareholders. NiSource raised its dividend in February 2023, taking the quarterly figure to 25 cents resulting in an annual payout of $1 per share. This indicates 6.4% growth from 2022.
The company increased its dividend five times in the past five years. NI’s current dividend yield is 3.65%, better than the industry’s average of 3.39%.
Systematic Investments
NiSource is continuously making long-term utility infrastructure investments for modernization to enhance its operations' reliability. The capital expenditure was $2.6 billion in first-quarter 2023, and is expected to be $15 billion in the 2023-2027 period.
Price Performance
In the past six months, shares of NI have gained 1.1% against the broader industry’s 4.4% decline.
ED’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $4.85, implying a year-over-year improvement of 6.6%.
AVA’s long-term earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.32, implying a year-over-year improvement of 9.4%.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.71, implying a year-over-year improvement of 0.7%.
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Reasons to Add NiSource (NI) to Your Portfolio Right Now
NiSource Inc. (NI - Free Report) is a utility company that provides natural gas and electricity services in the United States. The company focuses on providing safe, reliable and clean energy through consistent investments in infrastructure.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for NI’s 2023 earnings per share (EPS) is pegged at $1.57. This indicates a year-over-year increase of 6.8%.
The company’s long-term (three- to five-year) earnings growth is pegged at 6.9%.
Return on Equity (ROE)
ROE indicates how efficiently a company utilizes its funds to generate higher returns. NI’s ROE is currently pegged at 11.14%, higher than the industry’s average of 9.65%, which indicates that the company is utilizing its funds more efficiently than peers.
Debt Position & Liquidity
NiSource’s times interest earned ratio at the end of first-quarter 2023 was 3.2. The strong ratio indicates that the company will be able to meet debt obligations in the near future without any difficulties.
The company had $2.3 billion net liquidity available as of Mar 31, 2023, which is adequate to meet its debt obligations.
Dividend History
The utility company has been consistently paying dividends to its shareholders. NiSource raised its dividend in February 2023, taking the quarterly figure to 25 cents resulting in an annual payout of $1 per share. This indicates 6.4% growth from 2022.
The company increased its dividend five times in the past five years. NI’s current dividend yield is 3.65%, better than the industry’s average of 3.39%.
Systematic Investments
NiSource is continuously making long-term utility infrastructure investments for modernization to enhance its operations' reliability. The capital expenditure was $2.6 billion in first-quarter 2023, and is expected to be $15 billion in the 2023-2027 period.
Price Performance
In the past six months, shares of NI have gained 1.1% against the broader industry’s 4.4% decline.
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Other Stocks to Consider
A few other top-ranked stocks in the same industry are Consolidated Edison Inc. (ED - Free Report) , Avista Corp. (AVA - Free Report) and PNM Resources Inc. (PNM - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ED’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $4.85, implying a year-over-year improvement of 6.6%.
AVA’s long-term earnings growth rate is 6.3%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.32, implying a year-over-year improvement of 9.4%.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 EPS is pegged at $2.71, implying a year-over-year improvement of 0.7%.