Eversource Energy (NYSE: ES), a major player in the Utilities sector, is a leading regulated electric utility in the United States. With a substantial market capitalization of $21.81 billion, Eversource Energy stands as a significant entity in the energy delivery business, operating across various segments including Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. For investors seeking stability and income, Eversource’s current dividend yield of 5.07% is an attractive feature, though its high payout ratio of 125.99% might raise questions about sustainability.
The company’s stock is currently priced at $59.42, showing a modest price change of 0.32 or 0.01% in recent trading sessions. Over the past year, Eversource’s stock has traded within a range of $54.25 to $68.40. This price stability is complemented by a forward P/E ratio of 11.85, suggesting potential value for investors anticipating future earnings growth.
Eversource Energy’s revenue growth is notable at 10.30%, reflecting the company’s ability to expand its operations and increase its customer base. However, the absence of a trailing P/E ratio and other valuation metrics such as the PEG Ratio and Price/Book may limit a comprehensive evaluation of its valuation. Additionally, the company’s free cash flow is reported at a significant negative amount of $2.37 billion, indicating potential challenges in cash generation and capital allocation.
From a technical standpoint, Eversource Energy’s stock is trading slightly below its 50-day moving average of $60.09 and 200-day moving average of $62.03, with a Relative Strength Index (RSI) of 50.95, suggesting a neutral market position. The MACD indicator is slightly negative at -0.36, with a signal line of -0.66, pointing to a potential bearish trend but not strongly so.
Analyst sentiment towards Eversource Energy is mixed, with 11 buy ratings, 6 hold ratings, and 3 sell ratings. The average target price stands at $68.74, offering a potential upside of 15.68% from the current price level. The target price range varies widely from $47.00 to $85.00, reflecting differing views on the company’s future performance and market conditions.
Eversource Energy’s long-standing history, dating back to its incorporation in 1927, and its strategic name change from Northeast Utilities in 2015, highlight its adaptability and enduring presence in the industry. Headquartered in Springfield, Massachusetts, the company serves a diverse customer base across Connecticut, Massachusetts, and New Hampshire, providing essential services that include electricity, natural gas, and water distribution.
For investors, Eversource Energy presents a combination of reliable dividend income and potential stock growth, albeit with some caution advised regarding its cash flow and payout sustainability. As the company continues to navigate the regulatory landscape and expand its energy delivery services, it remains a key contender in the utilities sector worthy of consideration for those seeking stability and moderate growth potential in their investment portfolios.
