Eversource Energy (ES), a major regulated utility in New England, is highlighted for its potential breakout as it approaches its earnings report. The company serves approximately 4.6 million customers across Connecticut, Massachusetts, and New Hampshire, and has total assets of $64 billion.
Despite a recent stock performance that has seen ES rise 11.2% over the past three months and 20.9% over the past year, its five-year annual growth rate of 1.3% lags behind peers like Duke and PPL.
The company faced challenges due to a loss from an offshore wind venture, but management has since exited that business, allowing for a recovery in earnings per share (EPS), projected to be $2.27 in 2024 and $4.56 in 2025.
Eversource's future growth strategy includes a $26.5 billion capital investment plan from 2026 to 2030, with a focus on electric distribution and gas infrastructure, as demand for electricity is expected to grow significantly in the coming years. However, a recent reduction in the base return on equity for New England transmission owners has led to a downward revision in EPS guidance for 2026.
The stock currently trades at about 16 times forward earnings with a 4.2% dividend yield. Investors are advised to monitor the upcoming earnings report, which is expected to show around $3 billion in revenue and $0.90 in EPS, as well as any updates to full-year guidance.
The stock has recently broken through a resistance level, suggesting a positive momentum that could continue if management meets or exceeds expectations