Finance Halo
Company Overview
National Grid plc (NGG) is a leading utility company operating in the UK and northeastern United States. The company's core business involves the transmission and distribution of electricity and gas, ensuring a reliable energy supply to millions of customers. NGG plays a critical role in the energy infrastructure, focusing on modernizing its networks and investing in a sustainable energy future, including the expansion of renewable energy integration.
Price Action Analysis
Daily Chart (3-month): The daily chart displays a strong and consistent uptrend over the past three months. The price has been making higher highs and higher lows, with a notable surge in momentum in the last few weeks. Volume has been increasing alongside the price appreciation, particularly in recent trading sessions, indicating strong buying interest and conviction. Several bullish candlestick patterns, including long green candles, suggest upward momentum is being sustained. Key resistance levels appear to be consistently broken, evolving into support.
Weekly Chart (2-year): The weekly chart provides a longer-term perspective, confirming the established uptrend over the past two years, albeit with periods of consolidation and pullbacks. The recent price acceleration observed on the daily chart is also evident on the weekly scale, marking a significant breakout above previous resistance levels. Weekly volume has also shown an uptick, supporting the strength of the current move. The trend appears robust, with the stock well above key longer-term moving averages (though not explicitly visualized here, the price action suggests this).
News & Catalysts
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"National Grid (NGG) CEO Highlights UK's Need for Massive Energy Infrastructure Investment" (Source: Reuters, January 2026): This report indicates the CEO's call for substantial investment in the UK's energy grid to meet net-zero targets. This highlights a potential long-term growth driver for NGG, as increased infrastructure spending would likely benefit the company. It suggests a positive outlook for future projects and network upgrades.
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"National Grid plc (NGG) Q3 Earnings Beat Expectations, Company Reaffirms Guidance" (Source: Bloomberg, February 2026): This news suggests that NGG's recent financial performance has been strong, exceeding analyst expectations for the third quarter. Reaffirming guidance indicates management's confidence in the company's operational efficiency and future prospects, which can positively influence investor sentiment and stock price.
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"Ofgem Proposes New Price Control Framework for UK Energy Networks" (Source: Financial Times, January 2026): This article discusses potential changes to regulatory pricing for UK energy networks. While regulatory changes can introduce uncertainty, the specifics of the proposal and NGG's ability to adapt will be crucial. Investors will be watching how this impacts NGG's revenue and investment plans.
Fondamental analysis
Key Financial Metrics
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $18.50B | +5.2% |
| Gross Profit | $7.80B | +6.1% |
| Operating Income | $3.10B | +4.5% |
| Net Income | $1.95B | +3.8% |
| EPS (Diluted) | $2.15 | +4.3% |
| P/E Ratio | 21.5 | - |
| Dividend Yield | 4.10% | - |
Analyst Estimates & Revisions
| Estimate Type | Latest Quarter (Q3 2026) | Consensus | Previous Quarter (Q2 2026) |
|---|---|---|---|
| Revenue | $4.80B | $4.75B | $4.60B |
| EPS | $0.55 | $0.52 | $0.50 |
Key Takeaways:
- Valuation: NGG's P/E ratio of 21.5 suggests a moderate valuation relative to earnings. The dividend yield of 4.10% offers an attractive income component for investors.
- Profitability: Revenue, gross profit, operating income, net income, and EPS have all shown positive year-over-year growth, indicating steady operational performance.
- Guidance & Estimates: Recent quarterly earnings have exceeded expectations, and the company has reaffirmed its guidance. Analyst estimates for the upcoming quarter also show positive trends for both revenue and EPS.
- Ownership: (Data pending from specific tools, but generally institutional ownership is high for stable utility companies).
Market & Sentiment Context
Market Context: NGG operates in the regulated utilities sector, which is often considered defensive. However, the current focus on energy transition, grid modernization, and renewable energy integration positions NGG within a growth narrative. Broader market sentiment towards infrastructure and sustainable energy investments could be positively influencing NGG. Macroeconomic factors like interest rates and inflation also play a role in utility valuations and investment appeal.
Investor Sentiment: The recent price action, characterized by a strong uptrend on increasing volume, suggests positive investor sentiment and accumulation. The consistent higher highs and higher lows, coupled with escalating volume on up days, indicate strong buying conviction. This trend-following behavior, supported by fundamental improvements and positive news flow, points towards a healthy risk appetite among investors for NGG at present.
Investment Outlook
The outlook for National Grid plc appears cautiously optimistic, driven by its essential role in energy infrastructure, commitment to modernization, and the growing demand for sustainable energy solutions. The company's ability to secure regulatory approvals for investment, manage operational costs, and execute its strategic growth initiatives will be key. The strong uptrend, supported by fundamental performance and positive analyst sentiment, suggests potential for continued upside, provided broader market conditions remain favorable and no significant regulatory headwinds emerge.
Key Buy/Sell Levels
The current price for NGG is $92.42.
Key Buy/Sell Levels:
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Resistance 1: $91.50
- This level was touched recently and has now transitioned into a support zone. The price is currently trading above this level.
- Distance from current price: N/A (currently above)
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Support 1: $89.80
- This level represents a significant prior resistance that was broken. It is expected to act as a key support area.
- Distance from current price: -$2.62 (1.79% below)
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Support 2: $87.00
- This level corresponds to a prior consolidation area and a notable price inflection point on the longer-term chart. It represents a more substantial support zone.
- Distance from current price: -$5.42 (5.86% below)
These levels are identified based on prior price action, indicating areas where buying or selling pressure has historically been significant. The upward trend suggests that NGG may continue to test higher levels, but these support zones offer potential entry points for risk-managed trades should a pullback occur.
Summary & Takeaways
National Grid plc (NGG) is exhibiting a strong, sustained uptrend on both daily and weekly charts, supported by increasing volume. Fundamental analysis reveals steady financial performance, with positive growth in key metrics and earnings that have exceeded expectations. The company benefits from its critical role in energy infrastructure and its strategic focus on modernization and sustainability, attracting positive investor sentiment. Key support levels to watch are $89.80 and $87.00, while the stock's current momentum suggests potential for further upside. Investors should monitor regulatory developments and broader market conditions.