Tuesday, January 26, 2016

NiSource - Chart of the Day

NiSource (NI) is the Barchart Chart of the Day.  The electric and natural gas utility company has a Trend Spotter buy signal, a Weighted Alpha of 22.60+, gained 17.94% in the last year and paid a 3.06% dividend.

The Chart of the Day belongs to NiSource (NI).  I found the electric and natural gas utility stock by using Barchart to sort the 52 week high list first for the highest technical buy signals, then I used the FlipChart feature to review the charts.  Since the Trend Spotter signaled a buy on 12/29 the stock gained 2.63%.

NiSource Inc. is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's more than 7,000 employees are focused on safely delivering reliable and affordable energy to their customers and communities they serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012 and is a member of the Dow Jones Sustainability - North America Index.

The status of Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 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 web site when you read this report.

Barchart technical indicators:

  • 100% technical buy signals
  • Trend spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 9 new highs and up 5.28% in the last month
  • Relative Strength Index 60.08%
  • Technical support level at 20.01
  • Recently traded at 20.31 with a 50 day moving average of 19.44
Fundamental factors:
  • Market Cap $6.46 billion
  • P/E 12.68
  • Dividend yield 3.06%
  • Revenue expected to shrink 22.60% this year and another 1.10% next year
  • Earnings estimated to decrease 36.00% this year , decrease again next year by another 2.70% and continue to decrease at an annual rate of 12.90% for the next 5 years
  • Despite these gloomy projections Wall Street analysts issued 1 strong buy, 4 buy and 6 hold recommendation on the stock
  • The individual investors on Motley Fool voted 155 to 21 that the stock will beat the market
This is not a trading stock and I don't understand the disconnect between the revenue and earnings projections and the opinions of both the analysts and individual investors.  The tape seems to confirm their sentiments

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