We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eversource (ES) Benefits From Investment & Renewable Focus
Read MoreHide Full Article
Eversource Energy (ES - Free Report) , an energy delivery company, provides reliable electric, natural gas and water services to more than 4.4 million customers in the United States.
This Zacks Rank #3 (Hold) stock is exposed to stringent regulations and the adverse impact of rising interest rates on margins.
Tailwinds
Eversource pursues organic growth to expand operations. It is currently focused on upgrading its electric distribution and transmission infrastructure. The company forecasts a capital investment of $21.5 billion during 2023-2027 period, out of which it plans to invest $14.2 billion in electric and natural distribution networks and $5.3 billion in its electric transmission segment. It has planned to make clean energy investments of $2 billion during 2023-2027 period to strengthen its renewable portfolio.
The company diversified operations and forayed into the water business through the acquisition of Aquarion Water Company in December 2017. Since the water industry has huge prospects, ES is planning to further expand water operations through acquisitions. During the 2023-2027 period, $1.02 billion is planned to be invested in the water distribution business to further strengthen operations and serve the expanding customer base more efficiently.
Eversource decided to monetize few offshore wind projects but has plans to generate more clean energy to reduce emission. ES’ regulated companies are building many of the facilities that will enable more than 9,000 megawatts of offshore wind generation to reach the homes and businesses of Southern New England.
Headwinds
The $1.6 billion Northern Pass transmission project of Eversource Energy is finally shelved after the New Hampshire Supreme Court upheld the state Site Evaluation Committee’s 2018 denial of the project. The company has no way to take this 192-mile transmission project forward, as this will hurt its growth plans.
The company’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations. The introduction of new mandates could impact the financial performance of the company.
Price Performance
In the last three months, shares of Eversource have lost 10.6% compared with the industry's decline of 5.5%.
Image Source: Zacks Investment Research
Stocks to Consider
A few better-ranked stocks in the same industry are Otter Tail Corporation (OTTR - Free Report) , Vistra Corporation (VST - Free Report) and FirstEnergy Inc. (FE - Free Report) . Otter Tail and Vistra are currently sporting a Zacks Rank #1 (Strong Buy) each and FirstEnergy is carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Otter Tail’s 2023 earnings per share (EPS) is pinned at $5.79, implying an increase of 22.9% in the past 60 days. Otter Tail reported average positive earnings surprise of 31% in the trailing four quarters.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.11, implying an increase of nearly 1% in the past 60 days. The current dividend yield of the company is 2.57%, which is higher than the Zacks S&P 500 Composite’s yield of 1.63%.
The Zacks Consensus Estimate for FirstEnergy’s 2023 EPS is pinned at $2.53, implying an increase of 0.8% in the past 60 days. Long-term (three to five years) earnings growth of the company is pinned at 6.45%.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Eversource (ES) Benefits From Investment & Renewable Focus
Eversource Energy (ES - Free Report) , an energy delivery company, provides reliable electric, natural gas and water services to more than 4.4 million customers in the United States.
This Zacks Rank #3 (Hold) stock is exposed to stringent regulations and the adverse impact of rising interest rates on margins.
Tailwinds
Eversource pursues organic growth to expand operations. It is currently focused on upgrading its electric distribution and transmission infrastructure. The company forecasts a capital investment of $21.5 billion during 2023-2027 period, out of which it plans to invest $14.2 billion in electric and natural distribution networks and $5.3 billion in its electric transmission segment. It has planned to make clean energy investments of $2 billion during 2023-2027 period to strengthen its renewable portfolio.
The company diversified operations and forayed into the water business through the acquisition of Aquarion Water Company in December 2017. Since the water industry has huge prospects, ES is planning to further expand water operations through acquisitions. During the 2023-2027 period, $1.02 billion is planned to be invested in the water distribution business to further strengthen operations and serve the expanding customer base more efficiently.
Eversource decided to monetize few offshore wind projects but has plans to generate more clean energy to reduce emission. ES’ regulated companies are building many of the facilities that will enable more than 9,000 megawatts of offshore wind generation to reach the homes and businesses of Southern New England.
Headwinds
The $1.6 billion Northern Pass transmission project of Eversource Energy is finally shelved after the New Hampshire Supreme Court upheld the state Site Evaluation Committee’s 2018 denial of the project. The company has no way to take this 192-mile transmission project forward, as this will hurt its growth plans.
The company’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations. The introduction of new mandates could impact the financial performance of the company.
Price Performance
In the last three months, shares of Eversource have lost 10.6% compared with the industry's decline of 5.5%.
Image Source: Zacks Investment Research
Stocks to Consider
A few better-ranked stocks in the same industry are Otter Tail Corporation (OTTR - Free Report) , Vistra Corporation (VST - Free Report) and FirstEnergy Inc. (FE - Free Report) . Otter Tail and Vistra are currently sporting a Zacks Rank #1 (Strong Buy) each and FirstEnergy is carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Otter Tail’s 2023 earnings per share (EPS) is pinned at $5.79, implying an increase of 22.9% in the past 60 days. Otter Tail reported average positive earnings surprise of 31% in the trailing four quarters.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.11, implying an increase of nearly 1% in the past 60 days. The current dividend yield of the company is 2.57%, which is higher than the Zacks S&P 500 Composite’s yield of 1.63%.
The Zacks Consensus Estimate for FirstEnergy’s 2023 EPS is pinned at $2.53, implying an increase of 0.8% in the past 60 days. Long-term (three to five years) earnings growth of the company is pinned at 6.45%.