NiSource (NI) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - The Zacks Rank and Style Scores provide a comprehensive framework for investors to identify stocks with high potential for market outperformance, particularly focusing on earnings estimate revisions and various investment styles [11][12][19]. Investment Framework - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with a strong emphasis on stocks rated 1 (Strong Buy) and 2 (Buy) [11][5]. - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, where A indicates the highest potential for outperformance [9][24]. Style Scores Breakdown - The Value Style Score identifies attractive stocks based on financial ratios like P/E and Price/Cash Flow, appealing to value investors [16]. - The Growth Style Score focuses on a company's future prospects, analyzing projected earnings and cash flow to find sustainable growth opportunities [3]. - The Momentum Style Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate shifts [10]. Company Spotlight: NiSource Inc. - NiSource Inc. is highlighted as a potential growth investment, holding a Growth Style Score of B and forecasting a year-over-year earnings growth of 6.9% for the current fiscal year [7]. - The company has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position among its peers [14][15]. - Recent analyst revisions have increased the earnings estimate for NiSource to $1.71 per share for fiscal 2024, with an average earnings surprise of 6.8% [21]. Market Context - The Zacks Rank has demonstrated historical success, with 1 stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - There are over 800 top-rated stocks available, making it essential for investors to strategically select those with favorable Zacks Ranks and Style Scores [18][25].