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Home
Stocks
Eversource Energy
ES

ES Eversource Energy

Eversource Energy · NYSE
Market Closed
68.52
▼ ⁦-0.68%⁩ (-0.47)
Market Cap$25.8B
Beta0.70
52w Low52w High
62.6376.57
Last Week
⁦-2.81%⁩
Last Month
⁦-3.72%⁩
Last 3 Months
⁦-1.28%⁩
Last Year
⁦+9.00%⁩
EL7 Factor Analysis
How we score this
Overall43
Weak — below market medianTurnaroundF 6/9DistressBetter than 43% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
63
17.8x17.8xAround median
▸
Growth
48
7.8%▲7.1%Around median
▸
Quality
34
6.4%▲4.5%Bottom tier
▸
Safety
34
5.2x▼2.6xBottom tier
▸
Capital Return
60
4.39%▲2.12%Around median
▸
Momentum
56
13.9%▲2.9%Around median
▸
Sentiment
61
9▲3Around median
Fair Value
Low confidenceCurrent price$69
Analyst target · 2 analysts
$74
⁦+8%⁩
See it undervalued
Range ⁦$72–$76⁩
vs
DCF (estimate)
$-59.60
⁦-187%⁩
Sees it clearly overvalued
⁦7.9⁩% discount · ⁦0⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$-59.60–$74⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 2 analysts setting price target
$73.80
⁦+7.7%⁩
Current Price $68.52·Median $74.00
Low
$72.00
High
$76.00
Current price
$68.52
Average target
$73.80
Street summary

Eversource Energy (ES) Price Target Analysis

The consensus price target for Eversource Energy saw a slight decline from 75.14 to 75 dollars over the past thirty days, a decrease of 0.19%. A contraction in the number of analysts covering the stock from 4 to 2 is noted, which increases uncertainty regarding the accuracy of the current consensus, although the market price (71.17) is still trading below the lowest observed price target (72 dollars), indicating a limited positive price gap.

As of 2026-08-10
Revisions momentum · 30d
⁦-1.6%⁩
Average rating
★ 2.94
Hold
Analyst coverage
16
Buy conviction
25%
Target dispersion
6%
Analyst ratings over time16 analysts rating
4
9
1
2
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.25 → 2.94
Recent analyst moves
  • = Reiterate2026-07-02
    Wells Fargo
    Overweight
  • = Reiterate2026-07-01
    BMO Capital
    Market Perform
  • = Reiterate2026-05-11
    BMO Capital
    Market Perform
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    17.75x
    4.50x36.01x
    Near median
  • Forward P/E
    14.15x
    4.35x34.77x
    Cheap
  • EV / EBITDA
    10.07x
    3.07x24.54x
    Cheap
  • FCF Yield
    1.2%
    -17.6%10.2%
    Above average
  • Revenue Growth YoY
    7.8%
    -10.5%25.3%
    Above average
  • EPS Growth YoY
    68.6%
    -53.8%122.0%
    Above average
  • Gross Margin
    18.1%
    9.8%69.4%
    Below average
  • ROIC
    6.4%
    -2.0%11.4%
    Above average
  • Net Debt / EBITDA
    5.16x
    1.28x10.25x
    Above average
  • Dividend Yield
    4.4%
    1.4%6.1%
    Moderate
  • Payout Ratio
    77.7%
    35.0%95.0%
    Moderate
  • Altman Z-Score
    0.78
    0.573.91
    Weak
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-31 data

Company Overview

Eversource Energy is a regulated utility focused on electricity and natural gas transmission and distribution networks in New England. Following the completion of the Aquarion sale on June 30, 2026, the company became more focused on a regulated "pipes and wires" model, with capital investments directed toward electric and gas infrastructure and their costs and returns recovered through regulatory frameworks. Its earnings drivers include electric transmission, electric distribution, and gas distribution, while it does not earn a profit on the cost of energy supplies themselves.

In Q2 FY2026, Eversource reported revenue of $2.9 billion, net income of $55.6 million, and GAAP EPS of $0.14. Recurring EPS was $0.87 versus $0.96 in the comparable quarter, as the FERC decision reduced the return of the electric transmission segment and the gas distribution segment was affected by the absence of a benefit from recoverable expenses recorded in the comparable period, while higher electric distribution revenue partially offset this pressure. The provided data did not include a gross profit or gross margin figure.

Reported results in Q2 FY2026 were affected by a non-cash after-tax charge of $111.4 million related to Aquarion's carrying value and another charge of $164 million for an increase in the potential obligation associated with the Revolution Wind project. On a trailing-twelve-month basis in 2026, revenue was $14.0 billion, net income was $1.5 billion, and EPS was approximately $3.86, compared with revenue of $13.5 billion, net income of $1.7 billion, and EPS of $4.56 in FY2025.

What's Driving the Stock

  • Management reaffirmed its FY2026 non-GAAP EPS range of $4.52–$4.72 and maintained its long-term EPS growth target of 5%–7% through 2030, targeting a move toward the upper half of the range by 2028. News dated August 26, 2026 also indicated expected year-over-year revenue growth of 2.3%.
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

Eversource completed the sale of Aquarion on June 30, 2026 for net cash proceeds of $1.7 billion and intends to use the funds to refinance parent-company debt. As of June 30, 2026, funds from operations-to-debt ratios were approximately 14.3% according to S&P and 15.7% according to Moody’s, more than 100 basis points above downgrade thresholds, and Moody’s revised its outlook for the company and NSTAR Electric from negative to stable.
  • ISO New England preliminarily selected the joint proposal from Eversource and Avangrid to increase transmission capacity between Maine and New Hampshire and strengthen the connection between northern and southern New England. The project’s total cost is $2.2 billion, with Eversource’s share at approximately $700 million and an expected in-service date in 2032. Management explained that nearly 50% of its share could fall within the capital forecast period through 2030 if the selection becomes final.
  • The company reaffirmed its $21.5 billion infrastructure investment plan, which could be supplemented by the preliminarily selected transmission project and the AMI program in Connecticut. The AMI proposal includes approximately $1 billion in capital investment and $300 million in operating and maintenance expenses, while management said mobilization could still begin in 2027 if the project receives approval during fall 2026.
  • The Revolution Wind project was approximately 97% complete as of July 31, 2026 and was delivering more than 300 megawatts to the ISO New England grid toward a capacity of 704 megawatts. Management confirmed that all components required for installation are available and that the project is scheduled to enter service in 2026, although the two stop-work orders, the loss of the installation vessel, and its remobilization increased cost estimates.
  • Buying & Selling Case

    ▲ Buying Case4 pts

    • +The sale of Aquarion for net proceeds of $1.7 billion gives Eversource greater capacity to reduce parent-company debt and fund its regulated infrastructure plan, with no equity issuance expected during the remainder of FY2026. Moody’s outlook revision from negative to stable also supports the case for improved financial resilience following completion of the transaction.
    • +The $21.5 billion capital spending plan provides a clear foundation for regulated asset growth, and the rate base has historically grown at a compound annual rate of slightly more than 8%, according to management. The company aims to translate these investments into sustainable EPS growth of 5%–7% through 2030, approaching the upper half of the range by 2028.
    • +The joint transmission project with Avangrid could add approximately $700 million to Eversource’s investment opportunities if ISO New England finalizes its selection of the proposal. The project is based on increasing capacity between Maine and New Hampshire and easing grid congestion, linking the proposed investment to a specific and measurable regional need.
    • +PURA’s decision on storm costs provides a path to securitize approximately $670 million following approval of nearly $870 million of the requested $975 million, of which approximately $200 million had already been recovered through rates. Management expects to receive the cash after completing the financing plan, review, and marketing process, supporting liquidity without immediately resorting to an equity issuance.

    ▼ Selling Case6 pts

    • −The FERC decision to reduce the base return on equity for electric transmission to 9.57% poses a direct risk to earnings and was a primary reason for the decline in recurring earnings in Q2 FY2026. In addition, the company may have to refund an additional $880 million if its challenges are unsuccessful, while the current equity issuance plan does not assume financing this refund.
    • −Recovery of investments from regulators remains not fully assured; CL&P requested a revenue increase of $451 million with a proposed return on equity of 10.25% and an estimated impact of approximately 11% on the customer’s total bill. In the storm-cost filing, PURA approved only approximately $870 million of the requested $975 million, deferring approximately $60–63 million, disallowing $40 million, and rejecting the requested carrying charges.
    • −Higher Revolution Wind costs related to the two stop-work orders, the loss of the installation vessel, and its remobilization resulted in an after-tax charge of $164 million in Q2 FY2026. Although the project was approximately 97% complete as of July 31, 2026, this charge shows that the project’s potential obligations can still cause material volatility in reported net income.
    • −Recurring EPS declined to $0.87 in Q2 FY2026 from $0.96 in the comparable period because of lower electric transmission and gas distribution earnings. Trailing-twelve-month net income in 2026 also declined to $1.5 billion from $1.8 billion in a previous trailing-twelve-month reading, while corresponding EPS fell from approximately $4.66 to approximately $3.86.
    • −The AMI program in Connecticut carries economic and regulatory risk, as the benefit-cost analysis showed a slightly positive nominal benefit that becomes negative on a net present value basis after costs increased. The proposal includes approximately $1 billion in capital investment and $300 million in operating and maintenance expenses, and the company will not proceed without confidence in cost recovery.

    Valuation

    The average analyst price target is $73.8, within a narrow range of $72 to $76, with the high end of the target range slightly below the 52-week high of $76.57, while the range low is $62.45. The "Neutral" consensus reflects a balance between the $21.5 billion capital plan and improved balance sheet on one hand, and the reduced transmission return, the risk of an $880 million refund, and Revolution Wind-related charges on the other. No valid price-to-earnings ratio was provided, so it cannot be used to assess valuation.

    HoldAnalyst target: $73.8(+7.7%)

    Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.

    FAQ

    What will determine Eversource Energy’s earnings growth through 2030?

    Eversource targets compound annual EPS growth of 5%–7% through 2030, moving toward the upper half of the range by 2028. This is supported by a $21.5 billion regulated infrastructure investment plan, alongside historical rate-base growth of slightly more than 8% annually. For FY2026, the company reaffirmed a non-GAAP EPS range of $4.52–$4.72.

    How did the sale of Aquarion change Eversource’s financial position?

    Eversource closed the sale of Aquarion on June 30, 2026 and generated net proceeds of $1.7 billion. It intends to use these proceeds to refinance parent-company debt, supporting its focus on regulated electricity and natural gas transmission and distribution operations. As of June 30, 2026, funds from operations-to-debt ratios were 14.3% according to S&P and 15.7% according to Moody’s, and Moody’s revised its outlook from negative to stable.

    What is the impact of the FERC decision on ES stock and the company’s earnings?

    The FERC decision reduced the base return on equity for electric transmission to 9.57%, pressuring transmission-segment earnings in Q2 FY2026. The company revised its FY2026 EPS guidance to $4.52–$4.72 to include the impact of the lower return and the Aquarion sale. Eversource is challenging the decision, but an additional refund of $880 million remains possible if the legal and regulatory proceedings are unsuccessful.

    Why is the joint transmission project between Eversource and Avangrid important?

    ISO New England preliminarily selected the Eversource and Avangrid proposal to increase transmission capacity between Maine and New Hampshire and strengthen the connection between northern and southern New England. The project will cost $2.2 billion, with Eversource’s share estimated at approximately $700 million and an expected in-service date in 2032. Management said approximately half of the company’s capital share could fall within its forecast period through 2030 if the selection becomes final.

    Why was reported EPS in Q2 FY2026 lower than recurring EPS?

    GAAP EPS was $0.14 in Q2 FY2026, while recurring EPS was $0.87. Results included a non-cash after-tax charge of $111.4 million related to Aquarion’s carrying value, in addition to a charge of $164 million for an increase in the potential obligation associated with Revolution Wind. After excluding these two items, recurring EPS remained below the $0.96 recorded in the comparable period because of weaker electric transmission and gas distribution earnings.

    What risks remain in Revolution Wind?

    The Revolution Wind project was approximately 97% complete as of July 31, 2026 and was delivering more than 300 megawatts to the ISO New England grid toward a capacity of 704 megawatts. However, the two stop-work orders resulted in the loss of the installation vessel and the need to remobilize it, contributing to an after-tax charge of $164 million in Q2 FY2026. Management confirmed that all installation components are available and is targeting the project’s entry into service in 2026, but the recorded increase demonstrates the sensitivity of results to any further change in the potential obligation.

  • −Net insider activity during the three months ended with the latest transaction on August 25, 2026 was sales of 703,060, with three sales and no purchases recorded. This remains a weak trading signal on its own because insider sales may be prearranged unless the data states otherwise.