NiSource shares lag Dow but retain strong buy ratings on earnings beat

NiSource Inc, a US-based energy holding company headquartered in Merrillville, Indiana, has recorded a 20.3% stock gain over the past 52 weeks, slightly lagging behind the Dow Jones Industrial Average’s 22.3% return. Despite missing first-quarter revenue estimates, the company delivered adjusted earnings per share of $1.06, surpassing analyst expectations. Wall Street maintains a ‘Strong Buy’ consensus on the stock, with a mean price target of $51.53, implying a 9% upside potential from current levels. The stock is currently trading above its 50-day and 200-day moving averages, although it remains 3.5% below its 52-week high of $48.98 reached on 1 May. NiSource continues to outperform peer UGI Corporation, which has declined 7% over the same period.

The Merrillville-based utility operates as a regulated natural gas and electric provider, serving residential, commercial, and industrial customers through its Columbia Operations and NIPSCO Operations segments. Classified as a big-cap stock with a market capitalisation of $22.7 billion, NiSource’s performance has drawn scrutiny from investors tracking the broader energy sector. While the company’s stock has risen 1.4% over the past three months, it has trailed the Dow Jones Industrial Average, which rose 12% during the same timeframe.

First-quarter 2026 results presented a mixed picture for the utility giant. Revenue for the quarter amounted to $2.4 billion, falling short of street estimates. However, the company’s adjusted earnings per share came in at $1.06, beating Wall Street’s expectations. The stock declined 1.4% on 6 May following the release of these earnings, reflecting market reaction to the revenue miss despite the profit beat.

Looking ahead, NiSource has provided guidance for full-year earnings in the range of $2.02 to $2.07 per share. This outlook, combined with the company’s position above key technical indicators, has bolstered analyst sentiment. The stock has been trading above its 200-day moving average since last year, indicating long-term bullish momentum, and has remained above its 50-day moving average since the last trading session.

Analysts tracking the stock remain highly optimistic, with the overall consensus standing at a ‘Strong Buy’ among the 15 analysts covering NiSource. The mean price target of $51.53 suggests significant upside potential from current levels. In contrast to its peer UGI Corporation, which has seen its stock decline 7% over the past year, NiSource has demonstrated relative resilience in the regulated utilities sector.