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Here's Why NI Stock Deserves a Spot in Your Portfolio Right Now

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Key Takeaways

  • NI's 2025 revenue estimate is pinned at $6.26 billion, implying 14.70% year-over-year growth.
  • The company plans gas turbines, battery storage and transmission upgrades to meet rising demand.
  • NI beat earnings estimates in three of the trailing four quarters with an average surprise of 3.23%.

NiSource Inc. (NI - Free Report) is systematically investing in modernizing its infrastructure to improve operational reliability while gradually replacing its coal-based units with clean energy assets.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick in the Zacks Utility-Electric Power industry at present.

NI’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pegged at $1.88, implying year-over-year growth of 7.43%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $6.26 billion, suggesting a year-over-year improvement of 14.70%.

NI’s long-term (three to five years) earnings growth rate is 7.93%.

NI’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 3.23%.

NI’s Dividend History

NI has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 28 cents per share, resulting in an annualized dividend of $1.12. NI’s current dividend yield is 2.56%, better than the Zacks S&P 500 composite's average of 1.09%.

NI’s Capital Investment Focus

NI’s capital investment plan forecasts capital expenditures in the range of $26.4 billion to $28.4 billion for 2026-2030.

The company's strategic expenditures focus on strengthening its generation and grid capabilities. This includes developing two 1,300-megawatt natural gas-fired turbines, adding 400 megawatts of new battery storage, and upgrading critical transmission infrastructure, enabling the company to meet rising demand from data centers, enhance system reliability, and improve 
customer satisfaction.

Overview of NI’s Debt Structure

Currently, NI’s total debt to capital is 58.37%, better than industry’s average of 59.51%. The company's capital structure is more efficient than the industry average, owing to its lower reliance on debt.

NI’s Solvency Ratio

NI’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 3.0. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

NI’s Share Price Performance

Over the past year, NI’s shares have risen 14.4%, but lagged behind the industry’s growth of 16.2%.

 

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Other Stocks to Consider

A few other top-ranked stocks from the same industry are CenterPoint Energy, Inc. (CNP - Free Report) , Ameren Corporation (AEE - Free Report) and Evergy, Inc. (EVRG - 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.

CNP’s long-term earnings growth rate is 8.86%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.77, which suggests year-over-year growth of 9.26%.

AEE’s long-term earnings growth rate is 8.52%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which suggests year-over-year growth of 7.78%.

EVRG’s long-term earnings growth rate is 5.78%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.01, which suggests year-over-year growth of 5.25%.

 

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