Stock Analysis | Eversource Outlook - Navigating Weak Technicals and Mixed Fundamentals

Market Snapshot

Takeaway: Eversource is showing a weak technical outlook (4.32 internal diagnostic score), with mixed fundamental signals and a recent price drop of -3.06%. Investors should proceed cautiously as volatility and conflicting signals persist.

News Highlights

• Trump fast-tracks Utah uranium mine: This development may indirectly impact energy markets and infrastructure stocks, but its direct effect on Eversource remains limited at this stage.
• China’s factory activity contracts: While the slowdown is easing, global manufacturing remains weak. This could affect Eversource’s infrastructure and energy services demand in Asia over time.
• NIO Inc. delivery update: The electric vehicle sector is growing, which may indirectly pressure traditional utility stocks like Eversource as clean energy trends gain momentum.

Analyst Views & Fundamentals

The market's view on Eversource is relatively neutral, with a simple average rating of 3.00 and a performance-weighted average of 2.08. The ratings are not highly consistent, with one analyst recently issuing a "Neutral" outlook. This aligns with the current price trend of a -3.06% decline, suggesting market expectations and performance are in sync.

Key fundamental values include:

• Revenue-MV: 0.45 (internal diagnostic score: 2)
• PCF: 19.07 (score: 0)
• PS: 7.10 (score: 2)
• Non-current assets / Total assets: 91.95% (score: 2)
• Basic earnings per share (YoY growth): 0.82% (score: 3)
• Net cash flow from operating activities (YoY growth): 118.07% (score: 1)
• Cost of sales ratio: 31.04% (score: 1)
• Current assets / Total assets: 8.05% (score: 3)

The mixed fundamental scores suggest Eversource has some strengths in cash flow and earnings but faces challenges in profitability and asset efficiency.

Money-Flow Trends

Eversource’s money-flow patterns are showing a mixed picture. The overall fund-flow score is 7.76 (good), but it hides the fact that block and large investors are showing negative trends, with only retail (small) investors in positive territory (50.03% inflow ratio). This divergence could signal uncertainty among institutional investors, while retail investors remain cautiously optimistic.

Key Technical Signals

Eversource's recent technical signals include a mix of cautionary and bullish indicators:

• Long Lower Shadow (score: 7.33): A moderate bullish sign with a 100% historical win rate.
• WR Oversold (score: 3.7): A weak but neutral indicator suggesting potential rebound.
• Bullish Engulfing (score: 2.58): A bearish pattern with a poor historical performance (avg. -0.24%).
• Marubozu White (score: 1): Strongly bearish, with a dismal historical win rate of 16.67%.
• Hanging Man (score: 7.0): A neutral-to-bullish sign with a good historical win rate of 66.67%.

Recent chart patterns include a Hanging Man on 2025-08-25 and a Bullish Engulfing on 2025-08-26, suggesting the stock is in a volatile, indecisive phase. The overall technical trend is weak (4.32 internal diagnostic score), with balanced long and short signals, but no clear directional bias.

Conclusion

Eversource is in a tricky phase, with weak technical signals and mixed fundamentals. While retail investors are cautiously optimistic, institutional investors remain bearish. The internal diagnostic scores suggest caution and a need to monitor key earnings and macroeconomic developments. Consider waiting for a pull-back or a clearer technical signal before committing to a position in Eversource.