Eversource Outlook - Mixed Signals Amid Weak Technicals and Strong Fund Flows

Market Snapshot

Takeaway: Eversource (ES) is rising in price by 2.54%, but technical signals and analyst expectations suggest caution. Current stance: bearish technicals and neutral analyst views.

News Highlights

Recent news suggests mixed market conditions with limited direct impact on Eversource:

• Trump Fast-Tracked Uranium Mine: While not directly affecting Eversource, this reflects a broader policy shift in energy. Uranium and utility sectors may see indirect ripple effects from regulatory and policy changes.
• China’s Factory Activity: China’s PMI in May rose to 49.5, showing a slight improvement in manufacturing. A slower contraction in China may support global energy demand, including utilities.
• Electric Power Industry Report: A recent article highlighted the growth of the electric power industry, with a focus on clean energy and government support. Eversource, as a major utility, could benefit from long-term policy tailwinds, though the stock is currently facing near-term technical headwinds.

Analyst Views & Fundamentals

Eversource received 1 analyst rating of "Neutral" from B of A Securities’ Julien Dumoulin-Smith in the past 20 days. The simple average rating is 3.00, while the performance-weighted rating is 2.08. These scores indicate a slightly bearish tilt when weighted by historical performance, despite the price rising 2.54% recently.

Here’s how key fundamental factors are performing:

• PE Ratio: 56.85 (Model score: 4.0 internal diagnostic score)
• PS Ratio: 7.10 (Model score: 3.0)
• Cost of Sales Ratio: 31.04% (Model score: 2.0)
• Rate of Return on Total Assets: 2.95% (Model score: 3.0)
• Long-Term Debt to Working Capital: 7.08% (Model score: 0.0)
• Cash-UP: 10.47% (Model score: 1.0)

These fundamentals show mixed signals. While Eversource maintains reasonable liquidity and asset structure (high non-current assets at 91.95%), elevated debt and high cost of sales raise concerns. The PE and PS ratios are well above market averages, suggesting valuation may be a limiting factor for growth.

Money-Flow Trends

Big money is showing caution: the fund flow score is 7.89 (good), with retail inflow at 51.65% and large institutional inflow at 47.01%. However, the overall trend is negative for large and extra-large investors, suggesting a bearish stance by seasoned players.

Takeaway: Retail investors are buying in, but big money is staying on the sidelines or selling, which could signal short-term volatility.

Key Technical Signals

Eversource’s technical indicators show a weak trend with 4 bearish and only 1 bullish signal in the past five days. The technical score is 3.71, indicating a weak technical side—suggested to avoid.

Recent chart patterns include:

• 2025-09-11: WR Overbought (score: 1.27), MACD Golden Cross (score: 6.39)
• 2025-08-26: Bullish Engulfing (score: 2.58)
• 2025-08-25: Long Lower Shadow (score: 7.33)
• 2025-08-19: Marubozu White (score: 1.00)

While the Long Lower Shadow suggests a potential rebound, the Marubozu White and WR Overbought highlight bearish pressure. The market is in a volatile and unclear direction, with bearish signals dominating the technical landscape.

Conclusion

Eversource is facing a mixed environment at the moment. Retail investors are optimistic, but big money is hesitant, and technicals remain bearish. Analysts remain neutral, though fundamentals show mixed performance with a high cost of sales and elevated debt ratios.

Actionable takeaway: Consider waiting for a pull-back before entering long positions, especially with technicals trending downward. Investors may want to monitor the next earnings report for any clarity in fundamentals and watch for a reversal in large-cap investor behavior.