Nicor Should Heat Up

S&P, noting a recent stock price decline, likes the natural gas outfit's diversified business model and rates the shares a strong buy

We believe that natural gas distribution outfit Nicor's (GAS: $45.56) current stock valuation—below its industry peers—combined with its strong balance sheet and a dividend yield that is higher than its peers, make the shares very attractive. We see the company's shipping and unregulated energy businesses driving its earnings growth while its utility business provides a solid earnings base.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.