Rates dynamic is good for NiSource

Exchange: NYSE

Sector: Utilities

Industry: Diversified Utilities

Entry strategy

Price: $28–$28.5

Stop-loss: $25.6

Take profit: $34

Investment horizon: until the end of 2019

Company details

NiSource Inc. is an energy holding company. It operates in the segments of gas supply (gas transportation) and electricity supply (production, transmission and distribution of electricity).

    The company owns and manages

  • two coal electric power plants with a capacity of 2080 megawatts (MW),
  • gas turbine with a capacity of 571 MW,
  • three gas power plants with a capacity of 186 MW,
  • two hydroelectric generators with a capacity of 16 MW.

Using these facilities, NiSource serves approximately 3.5 million gas customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts. In the electricity business, the company serves about 472,000 customers in northern Indiana.

NiSource Inc. was founded in 1912 and is located in Merriville, Indiana. Until April 1999, the company was called NIPSCO Industries, Inc.

Key indicators of NiSource shares and analysts’ recommendations:

Basis for the long position — technical analysis

Stock prices of companies from the Utilities sector are sensitive to interest rates hikes. They gain power when rates stop rising and especially when they start to drop. This usually happens in the later stages of the business cycle growth — right up to the point where the recession becomes apparent and the monetary authorities begin fighting with it by easing monetary policy.

NiSource Inc. stock is one of the potential candidates for inclusion in the portfolio for the period of the business cycle updating to a new stage of long-term growth.

Technical analysis of the NiSource Inc. stock ($NI). Daily data. Source: TradingView