Stock Analysis | Eversource Outlook - Technical Weakness and Mixed Signals Ahead

Market Snapshot: A Weak Technical Outlook

With a technical score of 3.87 from internal diagnostic models (0-10), Eversource (ES) is showing a weak technical outlook, and analysts recommend caution due to the dominance of bearish signals.

News Highlights

Recent news points to broader economic and energy trends that may indirectly affect Eversource, which operates in the utility sector:

• Michigan Utility Partnership: On May 28, 2025, Michigan announced a $3.5 billion partnership with major utilities to channel spending toward in-state businesses, particularly for clean energy development. This could support long-term demand for utility services in the state.
• Electric Ferry Projects: Corvus Energy has been selected to supply energy storage systems for four new electric ferries being built for BC Ferries. While not directly related to Eversource, this shows continued global momentum toward electrification, which utilities will support in the long term.
• U.S. Visa Policy Changes: A new policy may impact 300,000 Chinese students, potentially affecting global business and investment flows. Eversource, like many U.S. firms, could be indirectly affected if it operates in international markets or relies on foreign talent.

Analyst Views & Fundamentals

The market sentiment for Eversource remains neutral, with a simple average rating of 3.00 and a performance-weighted rating of 3.30. The consensus is consistent among analysts, but it doesn’t align with the recent price decline of -0.73%.

• Revenue-to-Market Value: 0.4463 (rank 2), internal diagnostic score: 2.00
• Price-to-Sales (PS): 7.1035, internal diagnostic score: 2.00
• Price-to-Earnings (PE): 56.8523, internal diagnostic score: 1.00
• Net Income to Revenue: 23.21%, internal diagnostic score: 0.00
• Non-current Assets to Total Assets: 91.95%, internal diagnostic score: 2.00
• Long-term Debt to Working Capital Ratio: 7.03%, internal diagnostic score: 0.00
• Cash Conversion Cycle: 10.48%, internal diagnostic score: 0.00
• Cost of Sales Ratio: 31.04%, internal diagnostic score: 1.00
• Total Assets Turnover Ratio: 11.54%, internal diagnostic score: 1.00
• Current Assets to Total Assets: 8.05%, internal diagnostic score: 3.00

While the company’s revenue relative to market value is moderate, its high PE ratio and weak net income margin raise concerns about profitability. The company holds a large portion of non-current assets (91.95%), which is typical for a utility business but may limit flexibility for new investments.

Money-Flow Trends

Despite the weak technical outlook, fund flow analysis shows a more positive picture. The stock has an overall inflow ratio of 0.4745, with 7.72 internal diagnostic score (0-10), indicating that institutional and large investors are still showing some confidence in the name.

• Small investors (negative trend, 49.53% inflow ratio)
• Medium investors (negative trend, 47.86% inflow ratio)
• Large investors (negative trend, 47.44% inflow ratio)
• Extra-large investors (negative trend, 47.19% inflow ratio)

This suggests that while small and medium retail investors are still showing caution, large block investors are maintaining some level of participation. The mixed flow pattern reflects uncertainty in the stock’s direction.

Key Technical Signals

Technical analysis shows a weak trend with more bearish than bullish signals. Here are the internal diagnostic scores (0-10) for recent indicators:

• WR Oversold: 3.70 – A weak indicator of potential upward momentum but historically has delivered only 15% average return over 48 signals.
• Bullish Engulfing: 3.77 – A moderately positive candlestick pattern but has a 50% win rate over six signals.
• Marubozu White: 1.00 – A strong bearish signal with a poor historical win rate of just 16.67%.
• Hanging Man: 7.00 – A strong bearish reversal signal, but only three signals exist in history with a 66.67% win rate and 0.8% average return.

In the recent 5 days, the following chart patterns appeared:

• 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

These signals suggest a mixed and somewhat volatile environment with no clear direction. The key insights indicate that while technical indicators are mixed, bearish signals are clearly dominant (3 vs. 1), and the recent pattern activity is sparse, suggesting the market is waiting for a catalyst.

Conclusion

With a weak technical outlook, mixed analyst ratings, and moderate but uncertain money flow, Eversource may not be the best pick for aggressive investors at this time. While the utility sector is generally stable, Eversource’s recent price trend and technical weakness suggest caution.

Actionable takeaway: Consider waiting for a clearer technical signal or a pull-back before entering a position. Investors may also want to watch upcoming earnings and capital allocation decisions, which could offer more insight into the company’s financial health and future trajectory.