Springfield, Massachusetts-based Eversource Energy (ES) is a public utility holding company that delivers energy. Valued at $22.4 billion by market cap, the company provides electric service to customers in Connecticut, New Hampshire, and western Massachusetts. It also distributes natural gas throughout Connecticut.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ES perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. Eversource Energy's rate-regulated business model provides a stable revenue stream across its electric, gas, and water distribution segments. The regulatory environment allows for predictable cost recovery and investment returns, contributing to the company's financial stability. The strategic divestment from offshore wind investments demonstrates a focus on optimizing its asset portfolio and concentrating on core regulated businesses.
Despite its notable strength, ES slipped 11.8% from its 52-week high of $69.01, achieved on Sept. 5, 2024. Shares of ES gained 6.3% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 9.2% dip during the same time frame.
In the longer term, shares of ES rose 6% on a YTD basis, outperforming NASX’s YTD losses of 5.8%. However, the stock climbed 5.1% over the past 52 weeks, underperforming NASX’s 10.7% returns over the same time frame.
To confirm the bullish trend, ES has been trading above its 50-day moving average since early February. However, the stock is trading below its 200-day moving average since early December, 2024, experiencing some fluctuations.
On Feb. 11, ES shares closed up more than 1% after reporting its Q4 results. Its adjusted EPS of $1.01 beat Wall Street expectations of $0.99. The company’s revenue was $3 billion, beating Wall Street forecasts of $2.8 billion.
ES’ rival, PPL Corporation (PPL) shares has taken the lead over the stock, with a 7.2% gain on a YTD basis and a 28.4% return over the past 52 weeks.
Wall Street analysts are moderately bullish on ES’ prospects. The stock has a consensus “Moderate Buy” rating from the 20 analysts covering it, and the mean price target of $69.25 suggests a potential upside of 13.8% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
