Stock Analysis | Eversource Outlook - Mixed Signals as Technicals Weigh Heavily

1. Market Snapshot

Headline Takeaway: Eversource (ES) is in a weak technical position with bearish signals dominating the recent five-day chart, and we assign it an internal diagnostic score of 3.38.Suggested Stance: Investors should consider avoiding the stock at this time due to the overwhelming bearish momentum.

2. News Highlights

• Michigan Partners with Big Utilities for $3.5B Local Supplier InvestmentOn May 28, 2025, Michigan announced a partnership with two major utilities to channel spending toward in-state businesses, particularly in clean energy. Positive for the broader utility sector but may take time to impact Eversource directly.
• U.S. Considers Gasoline Tax to Boost EV AdoptionOn May 31, 2025, Pakistan announced plans to introduce a five-year levy on gas-powered vehicles to promote electric vehicles. Such policies globally may benefit companies investing in clean energy infrastructure, including Eversource in the long term.
• Analyst Recommends 'Neutral' StanceOn July 21, 2025, Julien Dumoulin-Smith of B of A Securities rated Eversource as 'Neutral', with a 100% historical accuracy in recent calls. This provides some support but doesn’t signal strong conviction.

3. Analyst Views & Fundamentals

Average Rating Score: 3.00 (simple mean) and Weighted Rating Score: 3.30 (performance-weighted).Consistency: Analysts are in agreement, with all recent ratings showing a 'Neutral' stance.

Rating-Price Trend Mismatch: Despite the 'Neutral' consensus, Eversource’s recent price trend has been negative, with a 2.03% drop. This suggests that the market may not be fully aligned with analyst expectations.

Key Fundamental Factors

• Revenue-Market Cap (Revenue-MV): 0.45 (internal diagnostic score: 2.00)
• Price-to-Sales (PS): 7.10 (score: 2.00)
• ROE YoY Growth: 4.98% (score: 2.00)
• Non-current Assets / Total Assets: 91.95% (score: 2.00)
• Basic EPS YoY Growth: 0.82% (score: 3.00)
• Long-term Debt / Working Capital: 7.23% (score: 0.00)
• Cash-UP: 0.10 (score: 0.00)
• Total Assets Turnover: 0.12 (score: 0.00)
• Current Assets / Total Assets: 8.05% (score: 2.00)
• Net Profit / Total Profit: 76.69% (score: 2.00)

Overall, the fundamental score is 2.62, indicating a weak position in terms of revenue, profitability, and efficiency metrics. The poor performance in debt and turnover metrics is a concern for long-term stability.

4. Money-Flow Trends

Eversource’s recent fund-flow data shows a negative overall trend, with all size categories (Small, Medium, Large, Extra-large) showing negative trends. Overall inflow ratio is 48.56%, suggesting that even though some money is still flowing in, it’s not enough to counter the outflows.

Big-money flows (Large and Extra-large) are particularly weak, with inflow ratios of 47.19% and 49.12%, respectively. This implies institutional investors are cautious or selling, which can further weigh on the stock price.

5. Key Technical Signals

The stock has 5 bearish indicators and only 1 bullish one in the last 5 days, with technical analysis assigning it an internal diagnostic score of 3.38. Here’s a breakdown of the key signals:

• MACD Death Cross: Score 1.09 – strong bearish signal indicating a potential long-term downtrend.
• Marubozu Black: Score 1.00 – bearish candlestick pattern with no upper wick, suggesting strong selling pressure.
• Marubozu White: Score 1.00 – bearish despite a white candle, with strong closing at the bottom of the range.
• Hanging Man: Score 7.00 – a reversal pattern, but appears in a bearish context and may be misleading; caution advised.

Recent Chart Patterns

• 2025-08-12: Hanging Man
• 2025-08-04: Marubozu White
• 2025-08-06: Marubozu Black
• 2025-08-08: WR Oversold + Bearish Engulfing
• 2025-07-31: MACD Death Cross + Earnings Release + Marubozu White

Key Insights: The technical momentum is bearish, with strong negative indicators dominating. The stock has shown no clear direction in the short term, with volatility and weak signals suggesting caution or even a short-term avoidance strategy.

6. Conclusion

Eversource is currently in a weak technical position with an internal diagnostic score of 3.38, and recent chart patterns show overwhelming bearish signals. While there are some neutral and even one bullish indicator, they are not enough to offset the negative momentum. Investors should consider waiting for a clearer trend or pullback before entering, particularly given the poor recent performance and weak fundamental indicators. The stock remains a high-risk proposition in the near term.