Eversource Energy (ES): Reassessing Valuation After Recent Share Price Pullback

Eversource Energy (ES) has quietly slipped about 9% over the past month, even as its year to date return remains firmly positive. That pullback is drawing fresh attention to what investors are actually paying for this regulated utility’s earnings power.

See our latest analysis for Eversource Energy.

That recent 1 month share price return of negative 8.63% comes after a solid 16.39% year to date share price gain. This suggests momentum has cooled even though the 1 year total shareholder return remains comfortably positive.

If this pullback has you reassessing your portfolio, it may also be a good moment to explore other regulated and essential service names through healthcare stocks for fresh defensive ideas.

With shares still trading below analyst targets despite steady earnings and dividend support, investors must now ask whether Eversource is quietly undervalued or if today’s price already reflects its regulated growth prospects.

Most Popular Narrative: 8.2% Undervalued

Compared to the last close at $66.74, the most followed narrative sees Eversource’s fair value closer to the low $70s, implying modest upside driven by earnings growth.

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.

Want to see how steady load growth, rising margins, and a recalibrated earnings multiple all converge into that higher fair value estimate? The narrative walks through each step of the model, shows how today’s profitability base is projected forward, and reveals the specific assumptions that bridge current price to that long term target.

Result: Fair Value of $72.73 (UNDERVALUED)

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

However, key risks around regulatory pushback in Connecticut and potential delays to asset sales or storm cost recovery could quickly undermine that undervaluation case.

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

Build Your Own Eversource Energy Narrative

If this perspective does not quite fit your view, or you would rather lean on your own work, you can build a personalized narrative in under three minutes, starting with 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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