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

Market Snapshot

Headline: Eversource (ES) is showing a weak technical picture, with bearish signals outweighing bullish ones and a falling price trend (-3.69%) suggesting caution for now.

News Highlights

Recent news highlights include:

• Michigan's $3.5 billion investment in local clean energy suppliers could indirectly benefit Eversource through increased demand for electric infrastructure and utilities.
• Major electric ferry projects in Canada, involving companies like Corvus Energy, signal a global shift toward electrification, which may align with Eversource’s long-term utility goals.
• U.S. policy changes on electric vehicles, including proposed levies on gasoline-powered cars, indicate growing government support for clean energy—potentially advantageous for Eversource’s grid infrastructure needs.

Analyst Views & Fundamentals

Analysts remain neutral on Eversource, with a simple average rating of 3.00 and a performance-weighted rating of 3.30. These scores are consistent, with no major dispersion in sentiment. However, the current price trend is falling (-3.69%), which contrasts with the neutral expectations from the market.

Key Fundamental Factors

• Basic earnings per share (YoY growth rate): 0.82% – Score: 3.72 (internal diagnostic score, 0-10)
• Net cash flow from operating activities per share (YoY growth rate): 108.39% – Score: 3.72
• Gross profit margin: 68.96% – Score: 3.72
• Long-term debt to working capital ratio: 7.16% – Score: 3.72
• Cost of sales ratio: 31.04% – Score: 3.72

Money-Flow Trends

Eversource is currently experiencing a negative overall trend in fund flows, with all categories—from small to extra-large—showing outflows. The overall inflow ratio is 0.47, suggesting a lack of strong institutional or retail interest at the moment. Large money (block and extra-large) flows are particularly bearish, with inflow ratios hovering around 0.47–0.48, further underlining the lack of confidence among major investors.

Key Technical Signals

Technically, Eversource’s chart pattern is mixed but leaning bearish. The technical score is 3.68, reflecting a weak setup. Here are the key signals:

• Marubozu Black (Score: 1.00): A bearish candlestick indicating a strong close near the low.
• Marubozu White (Score: 1.00): A bullish candlestick, but in this context, it appears bearish as part of a broader negative trend.
• WR Oversold (Score: 3.70): A neutral-to-bullish signal, but not enough to overcome the bearish momentum.
• Hanging Man (Score: 7.00): A neutral-to-bullish reversal signal, though it's not currently strong enough to turn the trend around.

Recent chart patterns (as of 2025-08-26):

• 2025-08-12: Hanging Man (neutral-to-bullish)
• 2025-08-06: Marubozu Black (bearish)
• 2025-08-08: WR Oversold and Bearish Engulfing (mixed but bearish)
• 2025-08-19: Marubozu White (bearish in context)

Key insights: The market is in a volatile state with no clear trend. Bearish indicators (3) dominate over bullish ones (1), suggesting a weak setup for short-term traders.

Conclusion

Eversource is currently facing a weak technical and market environment, with bearish signals and a falling price trend. While fundamentals remain relatively solid—especially in cash flow and margins—traders should exercise caution. Given the low internal diagnostic score (3.68) and recent bearish candlestick patterns, it may be wise to wait for a clearer trend or pullback before taking new long positions. Investors with existing holdings might consider monitoring the upcoming earnings or broader utility sector trends for potential turning points.