ES Stock Analysis — Eversource Energy
Sector: Utilities
AI Verdict
Eversource trades at 15.4x next year's earnings with 21.3% growth expected—cheap for the growth you're getting if its monopoly utility position keeps cash flows steady.
Competitive Moat
Eversource operates regulated electric and gas utilities across New England, giving it a monopoly on transmission and distribution in its service areas. The regulatory framework ensures stable returns and limits competitive threats, making its cash flows resilient.
Summary
Eversource is flashing an oversold RSI of 33.4 while trading at a discount to the sector median on next year's earnings.
Where It Stands
With a 1-year return of 8.58%, an RSI of 33.4 (oversold), and a forward P/E of 15.4x versus the utility sector's 18x median, Eversource looks cheap for its category.
Key Metrics
- RSI: 33.4 — Near Oversold
- Trailing P/E: 18.7x
- Forward P/E: 15.4x
- PEG Ratio: 0.93
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $27.1B
- Dividend Yield: 0.04%
- 1-Year Return: 8.58%
- 52-Week High: $76.57
- 52-Week Low: $61.53
Analyst Consensus
13 Buy · 10 Hold · 3 Sell (26 analysts)
Bull Case
Forward EPS is expected to grow 21.3% while the stock trades at just 15.4x next year's earnings—well below the sector's 18x median.
Bear Case
If the P/E reverts to the sector median of 18x from its current 15.4x, upside is limited to about 17%, but if earnings disappoint, the low multiple offers little cushion.
Catalyst to Watch
Watch for regulatory rate decisions or updates on infrastructure investments, as these could directly impact forward earnings expectations.