Eversource Outlook - Mixed Signals and a Cautious Call for Investors

1. Market Snapshot

Takeaway: Eversource (ES) is caught in a mixed technical environment, with a weak technology score of 4.32 and a bearish medium trend, suggesting cautious positioning ahead.

2. News Highlights

Recent headlines include developments in U.S. COVID-19 vaccine policy changes under Robert F. Kennedy Jr., which could affect healthcare and pharmaceutical sectors more than utilities like Eversource. Additionally, President Trump's fast-tracked Utah uranium mine highlights energy sector shifts, though uranium and utility markets remain distinct. Meanwhile, China’s manufacturing activity showed slight improvement in May, which could indirectly support global energy demand over time.

3. Analyst Views & Fundamentals

The analyst consensus remains neutral, with a simple average rating of 3.00 and a performance-weighted rating of 2.08, reflecting modest expectations. While ratings are consistent (all neutral from one analyst), the price trend is down (-0.36%), aligning with the bearish slant in both ratings and technical analysis.

On the fundamental side, key factors show a mixed picture:

• Earnings per share growth (YoY): 0.82% for basic and 0.82% for diluted EPS (internal diagnostic scores: 3 and 3)
• Gross profit margin (GPM): 71.15% (score: 1)
• Gross margin ratio (GMAR): 71.15% (score: 1)
• Cost of sales ratio: 31.04% (score: 2)
• Shareholders’ equity growth (YoY): 4.17% (score: 2)
• Current assets / Total assets: 8.05% (score: 3)
• PE ratio: 56.85 (score: 1)
• Long-term debt to working capital ratio: 7.10% (score: 1)

While Eversource has posted positive earnings growth, the high PE ratio and thin margins suggest valuation concerns. The overall fundamental score is 4.67, pointing to a balanced but not robust financial profile.

4. Money-Flow Trends

Fund flows highlight a split in market sentiment: large and extra-large investors are showing negative trends, while small investors are pushing positive momentum. The overall inflow ratio is 48.2%, indicating moderate buying pressure from all sizes. However, the block investor inflow ratio is 47.98%, reinforcing a bearish institutional stance.

5. Key Technical Signals

On the charts, Eversource has triggered a mix of signals over the last five days:

• Marubozu White (2025-08-19): A bearish sign with an internal diagnostic score of 1.0, suggesting a strong closing but weak follow-through.
• WR Oversold (2025-08-18): A bullish reversal signal, but with a weak score of 3.7, indicating limited conviction.
• Hanging Man (2025-08-25): A potential top with a 7.0 score — a strong bearish warning.
• Bullish Engulfing (2025-08-26): A bullish reversal pattern, but with a low score of 2.58, showing poor historical performance.
• Long Lower Shadow (2025-08-25): A neutral-to-bullish signal with a strong score of 7.3, indicating potential support.

Despite these signals, the overall technical trend remains weak, with mixed and scarce signals. Investors are advised to watch for clearer directional momentum before committing.

6. Conclusion

Eversource’s outlook is cautiously mixed. While fundamentals show stable earnings and decent equity growth, technical signals remain weak and inconsistent. Analysts are neutral, and money flows reflect a tug-of-war between small and large players. Investors should consider waiting for a clearer breakout or pullback before entering new positions. For now, keep a close watch on earnings reports and potential regulatory shifts in the utility sector.