Eversource Energy (ES) just doubled down on its long term growth story, reaffirming a $24.2 billion capital plan through 2029 to upgrade and expand its transmission and distribution networks.
See our latest analysis for Eversource Energy.
That long term plan is landing in a market that has already started to warm to the story, with a year to date share price return of 17.1% and a 1 year total shareholder return of 22.9%. This suggests momentum is quietly rebuilding after a tougher three year stretch.
If this kind of regulated growth story appeals, it could be worth widening the lens and exploring fast growing stocks with high insider ownership as a way to spot the next wave of compelling ideas.
Yet with the stock up double digits this year, trading only modestly below consensus targets but still at a steep discount to some intrinsic value estimates, is Eversource a quietly mispriced utility, or is the market already baking in that future growth?
With the shares last closing at $67.16 against a narrative fair value near $72.93, the current price sits below a methodical long term outlook.
Analysts expect earnings to reach $2.1 billion (and earnings per share of $5.54) by about September 2028, up from $858.0 million today.
Curious how a regulated utility gets credit for margin expansion and earnings growth while assuming a lower future multiple than its industry peers? The narrative breaks down which top line improvements, profitability shifts and capital allocation moves have to line up to make that math work, and which assumptions really carry the valuation load.
Result: Fair Value of $72.93 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that steady growth narrative hinges on constructive regulation in Connecticut and successful asset sales, where setbacks could strain the balance sheet and future returns.
Find out about the key risks to this Eversource Energy narrative.
If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just 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.
Do not stop at one potential winner. Use the Simply Wall Street Screener to uncover fresh ideas before others notice them and strengthen your portfolio for tomorrow.