NiSource: Double Energy Play
Summary
- 100% technical buy signals.
- 11 new highs and up 11.97% in the last month.
- 33.28% gain in the last year plus a 2.97% dividend.
- Price targets as high as 36.00.
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The Chart of the Day belongs to the electric and natural gas company NiSource (NI). I found the stock by using Barchart's powerful screening function to find the stock with the highest Weighted Alpha and technical buy signals that are closest to their 52 week highs, then used the Flipchart function to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 1/27 the stock gained 14.69%. The stock is within .03% of its 52 week high.
NI Price vs Daily Moving Averages (Barchart)
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates through two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 853,000 customers in northern Indiana, as well as approximately 2.4 million residential, commercial, and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It operates approximately 54,600 miles of distribution main pipelines, as well as associated individual customer service lines; and 1,000 miles of transmission main pipelines. The company generates, transmits, and distributes electricity to approximately 483,000 customers in 20 counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations with a capacity of 722 megawatts (MW) in Wheatfield and 455 MW in Michigan City; combined cycle gas turbine with a capacity of 563 MW in West Terre Haute; natural gas generating units with a capacity of 155 MW in Wheatfield; hydro generating plants with a capacity of 9 MW in Carroll County and 7 MW in White County; and wind generating units with a capacity of 102 MW and 302 MW in White County, Indiana. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana. (Source: Seeking Alpha)
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 36.25+ Weighted Alpha
- 33.28% gain in the last year
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 11 new highs and up 11.97% in the last month
- Relative Strength Index 77.18%
- Technical support level at 31.65
- Recently traded at 32.08 with a 50 day moving average of 29.38
Fundamental Factors:
- Market Cap $12.90 billion
- P/E 22.58
- Dividend yield 2.97%
- Revenue expected to grow 5.50% this year and another 5.50% next year
- Earnings estimated to increase 5.80% this year, an additional 6.90% next year and continue to compound at an annual rate of 3.52% for the next 5 years
Analysts and Investor Sentiment - I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 6 strong buy, 4 buy, 3 hold opinions on the stock
- Some analysts have a price target as high as 36.00
- The individual investors following the stock on Motley Fool voted 142 to 21 for the stock to beat the market with the more experienced investors voting 17 to 6 for the same result
- 6,890 investors are monitoring the stock on Seeking Alpha
Ratings Summary
| SA Authors | Buy | 3.50 |
|---|---|---|
| Wall Street | Buy | 4.23 |
| Quant | Buy | 4.26 |
Factor Grades
| Now | 3M ago | 6M ago | |
|---|---|---|---|
| Valuation | C- | C | C- |
| Growth | C+ | C- | D+ |
| Profitability | C+ | B+ | B+ |
| Momentum | A | B+ | B- |
| Revisions | B | A- | D+ |
Quant Ranking
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This article was written by
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.