Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering NiSource (NI) , which belongs to the Zacks Utility - Electric Power industry.This energy holding company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 6.83%.For the most recent quarter, NiSource was expected to post earnings of $ ...

NiSource (NI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectati ...

Core Insights - NiSource Inc. is a prominent U.S. utility holding company with a market cap of $20.2 billion, serving nearly 4 million natural gas and electric customers across six states [1] - The company is expected to report a fiscal third-quarter earnings of $0.17 per share, reflecting a 15% decline year-over-year [2] - For the full fiscal year 2025, analysts project an EPS of $1.88, a 7.4% increase from $1.75 in fiscal 2024, with further growth anticipated to $2.03 in fiscal 2026 [3] Stock Performance - NiSource's stock has increased by 25.9% over the past 52 weeks, outperforming the S&P 500 Index's 14.4% gains and the Utilities Select Sector SPDR Fund's 14.7% gains [4] - The stock's performance is attributed to strong financial results, strategic initiatives, and favorable market sentiment [5] Analyst Ratings - The consensus opinion on NiSource stock is moderately bullish, with a "Moderate Buy" rating from analysts; 10 out of 15 analysts recommend a "Strong Buy" while 5 suggest a "Hold" [6] - The average analyst price target for NI stock is $44.77, indicating a potential upside of 4.8% from current levels [6] Capital Expenditure - NiSource has outlined a robust capital expenditure plan of $19.4 billion for the years 2025–2029, aimed at modernizing infrastructure and improving service reliability [5]

Group 1 - NiSource (NYSE: NI) operates five local distribution utility companies and one gas and electric utility, NIPSCO [1] - The stock price increase has positively impacted utilities that may supply AI data centers [1] - Laura Starks, founder and CEO of Starks Energy Economics, has extensive experience in energy investment and analysis [1] Group 2 - The coverage of Laura Starks includes various sectors such as utilities, independent power producers, and all sectors of oil and natural gas [1]

Company Overview - NiSource (NI) is based in Merrillville and operates in the Utilities sector, with a year-to-date share price change of 15.29% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 2.64%, which is lower than the Utility - Electric Power industry's yield of 3.21% and the S&P 500's yield of 1.53% [3] Dividend Performance - NiSource's annualized dividend of $1.12 has increased by 5.7% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 6.29% [4] - The current payout ratio for NiSource is 59%, indicating that the company distributes 59% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, NiSource anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.88 per share, reflecting a 7.43% increase from the previous year [5] Investment Considerations - NiSource is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a more stable dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]

Core Insights - NiSource Inc. is valued at a market cap of $19.4 billion and operates as an energy holding company providing natural gas and electricity services [1] - The company is heavily investing in modernizing infrastructure and transitioning to cleaner energy sources, which positions it for long-term growth [2] Company Overview - NiSource is classified as a large-cap stock due to its market cap exceeding $10 billion, highlighting its size and influence in the regulated gas industry [2] - The company benefits from being a fully regulated utility, ensuring stable and predictable cash flows [2] Financial Performance - In Q2, NiSource reported an 18.3% year-over-year increase in operating revenue to $1.3 billion, with adjusted EPS growing 4.8% to $0.22, surpassing consensus estimates [5] - The company narrowed its fiscal 2025 adjusted EPS guidance to the upper half of the $1.85 to $1.89 range, indicating confidence in achieving financial targets [5] Stock Performance - NiSource's shares are currently trading 5.1% below their 52-week high of $43.51, reached on August 4 [3] - Over the past three months, shares have gained 4.5%, underperforming the Utilities Select Sector SPDR Fund's (XLU) 5.5% return [3] - Year-to-date, shares are up 12.4%, slightly lagging behind XLU's 12.6% increase [4] - Over the past 52 weeks, NiSource has rallied 21.2%, outperforming XLU's 6.4% rise [4] - Despite positive earnings results, shares fell 2.5% on the day of the Q2 earnings release [5]

Group 1 - NiSource shares have increased by approximately 14% over the past year due to rising optimism regarding data center electricity demand [1] - Currently, NiSource shares are down nearly 10% from their recent highs, primarily due to escalating political risks [1] Group 2 - The company has a history of making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Group 1 - NiSource (NYSE: NI) shares have increased approximately 14% over the past year due to rising optimism regarding data center electricity demand [1] - Currently, NiSource shares are down nearly 10% from their recent highs, primarily due to escalating political risks [1]

Core Viewpoint - NiSource (NI) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for NiSource indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [5][10]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on four factors related to earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - NiSource's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a superior earnings estimate revision feature and potential for market-beating returns [10]. Earnings Estimate Revisions for NiSource - For the fiscal year ending December 2025, NiSource is expected to earn $1.88 per share, unchanged from the previous year, but analysts have raised their estimates by 0.1% over the past three months [8].

Industry Overview - The Utility – Electric Power industry is transitioning to cleaner fuel sources and reducing carbon emissions, supported by government policies promoting sustainable power generation [1] - Utilities are investing in grid upgrades and improving transmission and distribution infrastructure to enhance resilience against severe weather events [1][3] - The industry is experiencing stable demand across economic cycles, with increased electricity consumption during extreme weather [3] Trends Impacting the Industry - Interest rates have declined from 5.25-5.50% to 4.25-4.50%, benefiting capital-intensive utilities by lowering borrowing costs for infrastructure investments [4] - Electricity production is projected to increase by 2.2% in 2025 and 2.3% in 2026, reaching 4,340 billion kilowatt-hours, driven by demand from commercial and industrial sectors [5] - The share of electricity generation from renewable sources is expected to rise from 23% in 2024 to 26% in 2026, aided by the Inflation Reduction Act [6] Company Highlights - CenterPoint Energy Inc. plans to invest $53 billion over the next 10 years to expand operations and meet rising electricity demand [19] - Fortis Inc. expects to invest $26 billion from 2025 to 2029, focusing on strengthening regulated electric and gas operations [23] - NiSource Inc. projects an investment of $19.4 billion for 2025-2029 to enhance its existing operations [27] Financial Performance and Valuation - The Utility Electric Power industry has gained 16.9% over the past 12 months, outperforming its sector's 14.2% increase but lagging behind the S&P 500's 22.7% gain [10] - The industry is currently trading at an EV/EBITDA of 14.37X, lower than the S&P 500's 17.02X and the Utility sector's 15.75X [13] - Long-term earnings growth estimates for CenterPoint Energy, Fortis, and NiSource are 7.8%, 5.13%, and 7.88% respectively, with respective dividend yields of 2.3%, 3.53%, and 2.58% [20][24][28]