Incorporated in 1927, Springfield, Massachusetts-headquartered Eversource Energy (ES) has been a household name in utilities, especially known for its electricity and natural gas (NGM24). With a market cap of $20.3 billion, it serves approximately 4 million customers across Connecticut, Massachusetts, and New Hampshire. Its electric service covers 149 towns in Connecticut, 140 towns in Massachusetts, and 211 towns in New Hampshire, with corresponding natural gas service in several towns across these states.

Shares of the energy delivery company have trailed behind the broader market over the past 52 weeks. ES has declined by 19.9% over this time frame, while the broader S&P 500 Index ($SPX) rallied 28.9%. In 2024, ES stock dipped 6.8%, compared to SPX's 11.2% gains on a YTD basis.

Narrowing the focus, ES also underperforms the Utilities ETF Vanguard’s (VPU) 8.7% return over the past 52 weeks.

Shares of Eversource Energy underperformed the broader markets over the past year due to a series of setbacks in 2023 and 2024. These included impairments on offshore wind investments caused by supply chain constraints and uncertainties, disappointing financial results, and cautious investor sentiment impacting market performance.

For the current fiscal year, ending in December, analysts expect Eversource Energy's EPS to grow by 4.4% to $4.53. The company's earnings surprise history is mixed. It beat consensus estimates in two of the last four quarters while missing on other two occasions. 

In the most recent quarter, Eversource Energy's EPS beat the projections by 2.8%, fueled by hefty investments in electric transmission for capacity growth and clean energy delivery, along with new electric and natural gas distribution rates boosting the bottom line. However, its revenue missed the estimates by 10.5%.

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buys,” nine “Holds,” and one “Moderate Sell.”

This configuration has been consistent over the past months. However, it is slightly more bullish than two months before, with five “Strong Buy” ratings.

On May 15, Bank of America Securities analyst Paul Cole maintained a “Sell” rating on Eversource Energy, setting a price target of $61, which implies an upside potential of 6% from the current price levels. Cole's rating reflects concerns over Connecticut's regulatory challenges, including pending rate decisions and storm cost recoveries. He doubts Eversource's ability to sustain its financial targets amidst these uncertainties, predicting below-average EPS growth and potential underperformance compared to industry peers through 2028.

The mean price target of $65.80 suggests a premium of just 14.4% to ES' current levels. The Street-high price target of $73 represents that the stock could rally as much as 26.9%.

More Stock Market News from Barchart

• Sempra Stock: Analyst Estimates & Ratings
• Is Palo Alto Stock a Buy Right Now?
• Do Wall Street Analysts Like Constellation Energy Stock?
• Up 57% YTD, Is This Small-Cap Gold Stock Still a Buy?

On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.