Stock Analysis | Eversource Outlook - Mixed Signals Amid Volatile Market Conditions

Market Snapshot

Takeaway: Eversource (ES) is facing a weak technical outlook with bearish signals dominating, while the fundamentals and money flows suggest a slightly more positive stance.

News Highlights

• Michigan Partners with Big Utilities for $3.5B Local Investments - This move could indirectly support utilities like Eversource if the state continues to invest in clean energy infrastructure.
• Electric Hydrogen Selects Weitz for World’s Largest eFuels Project - While this news is unrelated to Eversource directly, it highlights the growing momentum in clean energy, a sector in which Eversource is involved.
• Govt Considers Gasoline Tax to Promote EVs - This policy change could have long-term benefits for utility companies that support electric vehicle infrastructure.

Analyst Views & Fundamentals

Average Rating Score: 3.00 (simple mean) | Weighted Rating Score: 3.30 (performance-weighted)

Rating Consistency: Consistent among the one active analyst (Julien Dumoulin-Smith from B of A Securities), who recently issued a Neutral rating.

Price Trend: The stock has recently fallen by -1.88%, which contrasts with the neutral market expectations, indicating a possible mismatch between analyst sentiment and market behavior.

Fundamental Factor Values & Scores:

• PE Ratio: 56.85 (internal diagnostic score: 3.94)
• PCF: 19.07 (score: 3.94)
• GMAR: 71.15% (score: 3.94)
• Non-current Assets / Total Assets: 91.95% (score: 3.94)
• Basic EPS YoY Growth: 0.82 (score: 3.94)
• Diluted EPS YoY Growth: 0.82 (score: 3.94)

Money-Flow Trends

Big money continues to flow out of Eversource, with all investor groups showing a negative trend. The overall inflow ratio is 47.66%, indicating a moderate outflow. Both retail (Small) and institutional (Large/Extra-large) investors are moving in the same direction, suggesting a shared bearish sentiment.

Key Technical Signals

Eversource’s technical outlook is weak, with 3 bearish and only 1 bullish indicator active in the last 5 days. Here’s a breakdown of the key signals:

• Marubozu White (score: 1.0): A strong bearish signal. Historically, it has shown poor returns and a low win rate of 16.67%.
• WR Oversold (score: 3.7): Suggests a potential short-term rebound but with limited strength.
• Bullish Engulfing (score: 3.8): Indicates a possible reversal, but its win rate is only 50.0%, signaling low confidence.
• Hanging Man (score: 7.0): A strong bearish pattern with a high win rate of 66.67%, suggesting caution for bulls.

Recent Chart Patterns (5 Days):

• 2025-08-12: Hanging Man
• 2025-08-26: Bullish Engulfing
• 2025-08-25: Long Lower Shadow
• 2025-08-19: Marubozu White
• 2025-08-18: WR Oversold

Trend Quality: The technical side is weak, and it is suggested to avoid it, as bearish signals are dominant and momentum is unclear.

Conclusion

Eversource is currently caught in a tug-of-war between bearish technical signals and slightly more positive money flows and fundamentals. Given the internal diagnostic score of 3.87 for technicals and a weak trend, it may be wise to consider waiting for a clearer breakout or a pull-back before entering a position. Watch for any updates in regulatory support for clean energy infrastructure, as these could provide a catalyst for the stock.