Stock Analysis | Eversource Outlook - A Bearish Crosshair in a Mixed Fundamental Landscape

1. Market Snapshot

Headline Takeaway: Eversource is currently trading in a bearish technical context with a weak internal diagnostic score of 3.72 (0-10), while fundamentals show moderate strength at 4.35 (0-10), suggesting caution for potential entrants.

2. News Highlights

Recent news headlines highlight global shifts in energy policy and infrastructure investment. On May 30, Michigan announced a $3.5 billion partnership with utilities to boost local clean energy supply chains, signaling growing state-level support for energy infrastructure—potentially a tailwind for Eversource, which operates in the region.

On May 29, Electric Hydrogen selected Weitz to deliver a HYPRPlant for a major green fuel project, which underlines expanding electrification efforts and could indirectly support demand for stable power providers like Eversource.

Also notable is the U.S. government’s consideration of a five-year levy on gasoline-powered vehicles, which could accelerate EV adoption and boost demand for grid services in the long term. While these developments are positive for the utility sector, they may take months to translate into Eversource's performance.

3. Analyst Views & Fundamentals

Analysts remain cautiously neutral on Eversource. The simple average rating score is 3.00, while the weighted rating score is 3.30, indicating consistent but mild expectations. The single active analyst, Julien Dumoulin-Smith of B of A Securities, recently issued a "Neutral" rating. His historical accuracy is 100%, which adds some weight to his current stance.

However, the stock’s current price is down -0.33% in recent trading, indicating a mismatch between analyst expectations and price action. This divergence may reflect broader market concerns or sector-specific challenges.

Fundamental Factors and Model Scores

• Basic earnings per share (YoY growth rate): 0.82% – internal diagnostic score of 4.35, indicating moderate growth.
• Total profit (YoY growth rate): 4.45% – internal diagnostic score of 4.35, showing modest but positive momentum.
• Non-current assets / Total assets: 91.95% – internal diagnostic score of 3.89, suggesting a heavy reliance on long-term assets.
• Long-term debt to working capital ratio: 7.19% – internal diagnostic score of 5.72, indicating manageable leverage.
• Current assets / Total assets: 8.05% – internal diagnostic score of 3.89, implying a lean liquidity position.

4. Money-Flow Trends

Eversource has seen negative trends in all fund-flow categories, with the overall inflow ratio at 48.73%. While retail (Small) investors are showing a slight 49.92% inflow, this has not been enough to offset the broader outflows in medium, large, and extra-large institutional blocks.

The fund-flow internal diagnostic score of 7.75 (0-10) suggests that the market is currently in a bearish phase, though the score is labeled as “good” relative to historical performance. This may imply that while flows are negative, the stock has held up relatively well under pressure.

5. Key Technical Signals

Technically, Eversource is in a weak position with an internal diagnostic score of 3.72 (0-10). The recent chart patterns include:

• Marubozu Black (score: 1/10) – a strong bearish candle pattern.
• WR Oversold (score: 3.89/10) – indicating a neutral to slightly bullish divergence.
• Marubozu White (score: 1/10) – another bearish confirmation.
• Hanging Man (score: 7.0/10) – a possible reversal signal, but in a bearish context.

Over the past five trading days, bearish patterns have dominated, particularly on August 19 and August 6. The Hanging Man on August 12 may offer a glimmer of resistance, but it has not yet triggered a reversal.

Key technical insight: The market is in a volatile state, and bearish signals (3) are clearly stronger than bullish ones (1). Until more positive momentum emerges, the trend remains weak and potentially risky for short-term traders.

6. Conclusion

Eversource is facing a crossroads: fundamentals are stable but unimpressive, while technicals are bearish and fund flows are trending downward. With a technical score of 3.72, the model explicitly advises avoiding the stock in the short term.

Actionable takeaway: Consider waiting for a clearer trend reversal or a pull-back to key support levels before entering. Monitor August earnings and broader utility sector performance, especially in light of the recent state-level clean energy initiatives. For now, caution is warranted.