Here's Why You Should Add NiSource Stock to Your Portfolio Now

NiSource Inc.’s NI strategic investment plans to modernize its 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 HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 2.7% to $1.91 in the past 60 days.The consensus estimate for 2025 sales is pinned at $6.06 billion, indicating a year-over-year increase of 11.1%.NiSource’s long-term (three to five years) earnings growth rate is 8.2%.The company delivered a trailing four-quarter average earnings surprise of 23.02%.Debt Position of NICurrently, NiSource’s total debt to capital is 56.68%, better than the industry’s average of 60.82%.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 GrowthThe 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 5.7% from the previous level. The company expects an annual dividend payout ratio of 60-70%. Its current dividend yield is 2.83%, better than the Zacks S&P 500 composite's average of 1.58%.NI’s Systematic InvestmentsThe 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 projects 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 PerformanceIn the past three months, the stock has returned 7.7% compared with the industry’s 2.8% growth.Image Source: Zacks Investment ResearchOther Stocks to ConsiderOther top-ranked stocks from the same industry are CenterPoint Energy Inc. CNP, CMS Energy CMS and Ameren Corporation AEE, each carrying a Zacks Rank of 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 7.5%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which indicates a year-over-year improvement of 8%.CMS’ long-term earnings growth rate is 7.7%. The consensus estimate for 2025 EPS is pegged at $3.60, which implies a year-over-year rise of 7.8%.AEE’s long-term earnings growth rate is 6.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.94, which indicates a year-over-year improvement of 6.7%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ameren Corporation (AEE): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report CMS Energy Corporation (CMS): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks