Stock Analysis | Eversource Outlook - A Weak Technical Picture Amid Mixed Fundamentals

Market Snapshot

Headline Takeaway: Eversource has risen 1.28% recently, but technical indicators paint a bearish picture with a weak internal diagnostic score of 3.72.

News Highlights

Recent news trends highlight broader shifts in energy and infrastructure, though with limited direct impact on Eversource. Notable stories include:

• Michigan’s $3.5B clean energy push: The state is collaborating with major utilities to boost in-state spending on clean energy projects, which could indirectly benefit Eversource as part of the broader utility sector.
• Electric ferry projects: Corvus Energy has been selected to supply energy storage systems for four new electric-capable ferries, reflecting growing global interest in electrification — a trend that supports utility infrastructure growth.
• EV policy shifts: Governments in the U.S. and abroad are introducing new policies to promote electric vehicles, including levies on gasoline-powered cars and new visa restrictions that could impact supply chains and student labor — both could influence long-term energy consumption trends.

Analyst Views & Fundamentals

Eversource has received 1 recent analyst rating of "Neutral" from B of A Securities. The simple average rating score is 3.00, while the performance-weighted rating is 3.30, indicating a consistent but modestly bullish outlook. The 100.0% historical win rate of analyst Julien Dumoulin-Smith adds credibility to the current stance.

However, these ratings clash with the weak technical outlook and mixed fundamental score of 3.64 (internal diagnostic score 0-10). Key fundamental values include:

• Revenue-MV: 0.45 (rank 2) — moderate growth potential.
• PCF: 19.07 — undervalued compared to peers.
• PS: 7.10 — relatively high for a utility.
• PE: 56.85 — expensive relative to earnings.
• Non-current assets / Total assets: 91.95% — heavy reliance on fixed assets.
• Basic earnings per share YoY growth: 0.82% — minimal growth.
• Long-term debt to working capital ratio: 7.17% — manageable leverage.
• Cost of sales ratio: 31.04% — fairly high for the sector.
• Total assets turnover ratio: 0.12 — low asset efficiency.
• Current assets / Total assets: 8.05% — low liquidity.

Money-Flow Trends

Despite the bearish technical signal, money flow trends suggest net outflows across all categories, with block investors (large institutional players) showing 47.8% outflow ratio, the highest among the groups. Retail (small) investors also showed a 49.8% outflow ratio, while mid-sized players (medium) showed 48.3% outflow. This points to negative sentiment from both retail and institutional sides, with the fund flow score of 7.7 (internal diagnostic score 0-10) suggesting a relatively healthy trend in the context of bearish technicals.

Key Technical Signals

Technical indicators for Eversource are heavily bearish, with 3 bearish signals versus 1 bullish. The internal diagnostic score for technicals is 3.72 (0-10), and the trend is described as "weak", with a clear warning to avoid the stock.

• Marubozu Black (2025-08-06): Score 1.00 (internal diagnostic score 0-10) — strong bearish signal.
• WR Oversold (2025-08-18): Score 3.89 — neutral to slightly bullish but historically mixed.
• Marubozu White (2025-08-19): Score 1.00 — bearish despite the white candle.
• Hanging Man (2025-08-12): Score 7.00 — neutral to slightly bullish, but not enough to offset bearish patterns.

Recent candlestick patterns point to uncertainty and a lack of clear momentum. The bearish signals are dominating and suggest a potential downward trend in the near term.

Conclusion

Eversource is in a tricky position: fundamentals remain mixed, with a modest internal diagnostic score of 3.64, while technical indicators are bearish at 3.72. Analysts are neutral, and money flows are negative across the board. Given this weak technical outlook and mixed fundamentals, investors are advised to consider holding off on new positions and wait for a clearer trend or stronger technical confirmation before committing capital.