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NiSource (NI) Upgraded to Buy: Here's Why
ZACKSยท 2025-09-12 17:00
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].