Eversource Energy (ES): Assessing Valuation After a Strong Year and Recent Pullback

Eversource Energy (ES) has quietly outperformed many utilities this year, with the stock up about 17% year to date and roughly 24% over the past year, despite some recent pullback.

See our latest analysis for Eversource Energy.

That recent pullback, including a modest 1 day share price return of about negative 1.2 percent, comes after a strong year to date share price run that has driven a solid 1 year total shareholder return. This suggests that momentum is pausing rather than breaking.

If Eversource has you rethinking where steady cash flows meet growth, it could be worth exploring other regulated opportunities across healthcare stocks for more ideas.

With the shares now trading close to analyst targets but still at a steep discount to some intrinsic value estimates, investors face a key question: Is Eversource undervalued or already pricing in its next chapter of growth?

Most Popular Narrative Narrative: 7.9% Undervalued

With Eversource shares last closing at $67.16 against a narrative fair value near $72.93, the story leans toward upside that hinges on execution and policy support.

The company's proactive divestiture of non-core businesses, execution on cash flow enhancements, and planned storm cost securitization are expected to strengthen the balance sheet and reduce equity financing needs, which should improve FFO to debt metrics and support credit quality.

Read the complete narrative.

Curious how modest top line growth, expanding margins, and a lower future multiple can still justify a richer price than today? Discover the earnings math behind this fair value call and see which long term assumptions quietly drive that 7.9 percent upside.

Result: Fair Value of $72.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory setbacks in Connecticut or delays in asset sales and storm cost recovery could quickly erode confidence in that carefully modeled upside.

Find out about the key risks to this Eversource Energy narrative.

Build Your Own Eversource Energy Narrative

If you see the story differently, or prefer to dig into the numbers yourself, you can shape a personalized narrative in under three minutes: Do it your way.

A great starting point for your Eversource Energy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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