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Here's Why You Should Add NiSource Stock to Your Portfolio Now
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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 2024 earnings per share (EPS) has increased 0.6% to $1.73 in the past 60 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $5.67 billion, indicating a year-over-year increase of 3%.
NiSource’s long-term (three to five years) earnings growth rate is 6.95%. The company delivered a trailing four-quarter average earnings surprise of 22.4%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 56.86%, better than the industry’s average of 60.03%.
The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.8. 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 shareholders a 9-11% annual return over the long term. Currently, NiSource’s quarterly dividend is 26.5 cents per share. This represents an annualized dividend of $1.06 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 2.88%, better than the Zacks S&P 500 composite's average of 1.22%.
NI’s Systematic Investments
The company is working on a long-term utility infrastructure modernization program. NiSource expects investments of $3.3-$3.5 billion for 2024 and $19.3 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 Stock Price Performance
In the past three months, the stock has returned 14.6% compared with the industry’s growth of 0.2%.
AEE’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 5.3% from the bottom line recorded in 2023.
DTE’s long-term earnings growth rate is 8.04%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 17.8% from the bottom line recorded in 2023.
AGR’s long-term earnings growth rate is 6%. The company delivered an average earnings surprise of 43.8% in the trailing four quarters.
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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 2024 earnings per share (EPS) has increased 0.6% to $1.73 in the past 60 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $5.67 billion, indicating a year-over-year increase of 3%.
NiSource’s long-term (three to five years) earnings growth rate is 6.95%. The company delivered a trailing four-quarter average earnings surprise of 22.4%.
Debt Position of NI
Currently, NiSource’s total debt to capital is 56.86%, better than the industry’s average of 60.03%.
The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.8. 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 shareholders a 9-11% annual return over the long term. Currently, NiSource’s quarterly dividend is 26.5 cents per share. This represents an annualized dividend of $1.06 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 2.88%, better than the Zacks S&P 500 composite's average of 1.22%.
NI’s Systematic Investments
The company is working on a long-term utility infrastructure modernization program. NiSource expects investments of $3.3-$3.5 billion for 2024 and $19.3 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 Stock Price Performance
In the past three months, the stock has returned 14.6% compared with the industry’s growth of 0.2%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , DTE Energy (DTE - Free Report) and Avangrid , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AEE’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 5.3% from the bottom line recorded in 2023.
DTE’s long-term earnings growth rate is 8.04%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 17.8% from the bottom line recorded in 2023.
AGR’s long-term earnings growth rate is 6%. The company delivered an average earnings surprise of 43.8% in the trailing four quarters.