Is NiSource Stock Underperforming the S&P 500?

With a market cap of $19.8 billion, NiSource Inc. (NI) operates as a regulated natural gas and electric utility through its Columbia Operations and NIPSCO Operations segments. The company delivers natural gas to approximately 2.4 million customers across several states using an extensive network of distribution and transmission pipelines. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and NiSource fits this criterion perfectly. NiSource also generates, transmits, and distributes electricity to about 0.5 million customers in northern Indiana, supported by a diverse mix of coal, natural gas, hydro, wind, and solar generating facilities.

Shares of the Merrillville, Indiana-based company have fallen 7.7% from its 52-week high of $44.88. NiSource’s shares have risen marginally over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 3.7% gain over the same time frame.

In the longer term, NI stock is up 12.7% on a YTD basis, underperforming SPX’s 16.1% rise. However, shares of the energy holding company have increased 13.4% over the past 52 weeks, slightly outpacing the 12.8% return of the SPX over the same time frame.

Despite recent fluctuations, the stock has been trading mostly above its 50-day and 200-day moving averages since last year.

Despite NiSource’s better-than-expected Q3 2025 revenue of $1.27 billion, its stock fell 2.1% on Oct. 29. The company’s adjusted EPS of $0.19 missed the consensus estimate and declined from $0.20 in the prior-year quarter. Additionally, investors likely reacted cautiously to the announcement of a massive $28 billion capital expenditure plan - a 45% increase over the prior plan.

In comparison, rival Atmos Energy Corporation (ATO) has outperformed NI stock. ATO stock has surged 20.9% on a YTD basis and 20.1% over the past 52 weeks.

Despite the stock’s underperformance on a YTD basis, analysts remain strongly optimistic on NI. It has a consensus rating of “Strong Buy” from the 15 analysts in coverage, and the mean price target of $46.43 is a premium of 12.1% to current levels.