Stock Analysis | Eversource Outlook - Bearish Momentum and Mixed Fundamentals Signal Caution

Market Snapshot

Headline Takeaway: Eversource's technical indicators are bearish, and its fundamentals are mixed—suggesting caution for potential investors.

News Highlights

• Michigan Utility Partnerships: Michigan is partnering with major utilities to boost in-state spending, especially in clean energy. This could create long-term tailwinds for Eversource, which operates in the energy sector.
• EV Adoption Push: Several nations and states are promoting electric vehicles with new policies, including potential levies on gas-powered cars. While not directly related to Eversource, a growing EV infrastructure may increase electricity demand, which could be a positive for the utility sector over time.
• U.S. Visa Policy Change: New restrictions on Chinese students may affect global trade and investment flows, potentially impacting energy consumption patterns and utility demand. However, the direct impact on Eversource is currently unclear.

Analyst Views & Fundamentals

The latest analyst ratings for Eversource show a simple average rating of 3.00 and a performance-weighted rating of 3.30. The ratings are consistent, with a neutral stance recently assigned by B of A Securities, the only active analyst in the past 20 days. This aligns with the current price trend, which has shown a modest rise of 0.30% in the last few days. While the analyst outlook is neutral, the fundamentals tell a more nuanced story.

Key fundamental factors include:

• Revenue-MV: 0.45 (internal diagnostic score of 2)
• Basic earnings per share (YoY growth rate): 0.82% (score: 3)
• Rate of return on total assets: 2.95% (score: 1)
• Cost of sales ratio: 31.04% (score: 2)
• Non-current assets / Total assets: 91.95% (score: 2)
• Long-term debt to working capital ratio: 7.49% (score: 1)

While some fundamentals are stable, the overall score of 2.83 on internal diagnostic metrics suggests room for improvement, particularly in asset efficiency and earnings growth.

Money-Flow Trends

Big money is flowing out of Eversource, with an overall inflow ratio of just 48.82%. Larger institutional investors (extra-large and large) are also trending negatively, with inflow ratios of 49.32% and 47.64%, respectively. Meanwhile, retail investors (small and medium) are also showing a negative trend, with inflow ratios of 49.89% and 48.89%. This suggests that both institutional and retail investors are currently cautious or bearish.

Key Technical Signals

Technically, Eversource is in a weak position. The internal diagnostic score is 3.27, indicating a weak technical outlook. The chart has shown several bearish signals, including a MACD Death Cross, a Marubozu Black, and a Marubozu White. The most recent indicator was a Hanging Man on August 12, 2025, which has a strong bullish bias (7.72 internal score), but it has not been enough to reverse the broader bearish momentum.

Here are the key scores for recent indicators:

• MACD Death Cross: 1.09
• Marubozu Black: 1.00
• Marubozu White: 1.00
• Hanging Man: 7.72

Overall, the technical outlook is bearish, with five bearish indicators against one bullish one. The chart is volatile and lacks a clear direction, suggesting that the stock may remain in a consolidation phase or continue to trend downward.

Conclusion

For now, Eversource appears to be a stock to watch with caution. The fundamentals are mixed, the technical indicators are largely bearish, and money flows are trending out. Investors may want to wait for a clearer trend or more bullish confirmation before committing capital. If you're holding, consider setting a stop-loss to manage downside risk. The next earnings release could provide some clarity, but for now, the message from the market is clear: proceed with caution.