Eversource Outlook - Technical Weakness and Mixed Fundamentals as Market Remains Volatile

Market Snapshot

Headline Takeaway: Eversource faces a weak technical outlook with more bearish signals than bullish, while fundamentals remain mixed and market sentiment shows a neutral to negative split among large investors. Avoid taking aggressive long positions for now.

News Highlights

Recent news has mostly focused on industry-related developments and broader economic updates. Here are the top items impacting or potentially impacting Eversource:

• Trump Fast-Tracks Utah Uranium Mine: While not directly related to Eversource, this development highlights ongoing energy policy shifts. If energy prices rise due to supply chain or regulatory changes, Eversource’s utility infrastructure could benefit in the long run.
• China’s Factory Activity Contracts: Global manufacturing growth remains sluggish, and a weak global economy could dampen demand for electricity. Eversource, as a utility company, is somewhat insulated but still exposed to macroeconomic trends.
• 4 Utility Stocks to Bet On: A recent article highlighted the utility sector's potential due to government incentives for clean energy. This could provide a thematic tailwind for Eversource and other utilities in the long term.

Analyst Views & Fundamentals

Eversource has received one analyst rating from Bank of America Securities in the past 20 days, which was a Neutral call. The simple average analyst rating is 3.00, while the historical performance-weighted rating stands at 2.08, indicating a cautious outlook based on past accuracy.

These ratings are not aligned with the recent price trend, which has seen a 0.19% rise over the past five days. This mismatch suggests that while the price is up, analysts and historical data imply a more neutral to bearish stance in the near term.

Key Fundamental Factors include:

• Shareholders’ equity attributable to parent company (growth rate compared to beginning of year): 4.17% (internal diagnostic score: 2.0)
• Non-current assets / Total assets: 91.95% (internal diagnostic score: 2.0)
• PCF (Price to Cash Flow): 19.07 (internal diagnostic score: 4.0)
• Rate of return on total assets: 2.95% (internal diagnostic score: 1.0)
• Current assets / Total assets: 8.05% (internal diagnostic score: 3.0)

Despite some strong fixed-asset positions, the low returns and high leverage factors point to a modest fundamental outlook with room for improvement.

Money-Flow Trends

Big money is moving cautiously. The overall fund flow score is 7.88 (considered “good”), but the actual trend is negative. Large and extra-large investors are selling more than buying, with inflow ratios below 50% across most categories:

• Large inflow ratio: 49.63%
• Extra-large inflow ratio: 47.35%
• Block inflow ratio: 48.40%

However, retail investors (Small flows) are net buyers, with an inflow ratio of 51.62%, suggesting retail sentiment is more bullish in the short term. This retail inflow could help stabilize the stock temporarily but may not be enough to reverse the broader bearish trend from larger investors.

Key Technical Signals

Eversource’s technical outlook is weak, with more bearish indicators than bullish. The technical score is 3.75, reinforcing a cautious stance.

Recent Chart Patterns (Last 5 days):

• WR Overbought: Seen on 2025-09-12, 2025-09-11, and 2025-09-15. Internal diagnostic score: 1.27 – a weak bearish signal.
• Dividend Announcement Date: Also on 2025-09-11. Internal diagnostic score: 1.19 – another bearish bias.
• Long Lower Shadow: Seen on 2025-08-25. Internal diagnostic score: 7.33 – a strong positive candle pattern.
• Bullish Engulfing: Noted on 2025-08-26. Internal diagnostic score: 2.58 – weak bullish signal.

Key Insights: Technical indicators are overwhelmingly bearish, with three negative and only one bullish signal in the last five days. Momentum is weak, and the market is in a volatile but directionless state. Investors are advised to avoid long positions for now.

Conclusion

Eversource presents a mixed outlook. While retail investors are cautiously optimistic and fundamentals are stable, technical indicators and big-money flows point toward a weak and bearish short-term trend. Analysts remain neutral, and historical performance does not strongly support a bullish case at this time.

Actionable Takeaway: Consider waiting for a pull-back or clearer momentum signal before entering long positions. Monitor upcoming earnings and dividend announcements for potential catalysts in the near term.