Valued at a market cap of $19.4 billion, NiSource Inc. (NI) is an energy holding company that provides natural gas and electricity services. The Merrillville, Indiana-based company is also investing heavily in modernizing infrastructure, upgrading electric transmission and distribution, deploying cleaner energy sources, and maintaining strong regulatory relationships.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and NiSource fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated gas industry. The company’s strength lies in being a fully regulated utility, which ensures stable and predictable cash flows. Its focus on infrastructure modernization and clean energy transition, including pipeline replacement, grid upgrades, and renewable integration, positions it well for long-term growth while maintaining reliability and safety for customers.
This utility company is currently trading 5.1% below its 52-week high of $43.51, reached on Aug. 4. Shares of NI have gained 4.5% over the past three months, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 5.5% return during the same time frame.
Moreover, on a YTD basis, shares of NI are up 12.4%, lagging behind XLU’s 12.6% uptick. Nonetheless, in the longer term, NI has rallied 21.2% over the past 52 weeks, outpacing XLU's 6.4% rise over the same time period.
To confirm its recent bearish trend, NI has been trading below its 50-day moving average since early September. However, it has remained above its 200-day moving average over the past year.
NiSource released its Q2 earnings results on Aug. 6. The company’s operating revenue improved by a notable 18.3% year-over-year to $1.3 billion, while its adjusted EPS of $0.22 grew 4.8% from the year-ago quarter and topped the consensus estimates. Furthermore, NI narrowed its fiscal 2025 adjusted EPS guidance to the upper half of the $1.85 to $1.89 range, signaling confidence in meeting its financial targets. However, despite these positives, its shares plunged 2.5% that day.
NI has outpaced its rival, ONE Gas, Inc. (OGS), which gained 3.4% over the past 52 weeks and 9.8% on a YTD basis.
Despite NI’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 14 analysts covering it, and the mean price target of $44.50 suggests a 7.7% premium to its current price levels.
