Eversource Energy ES benefits from grid modernization and stable demand from residential, commercial and industrial customers. Its strategic investment in infrastructure development enables it to provide reliable services to customers.
This Zacks Rank #3 (Hold) company faces regulatory risks and inadequate performance by third parties that may impact its performance.
ES’ Tailwinds
Eversource Energy benefits from systematic capital expenditure and grid modernization, which enhance operational efficiency. Its advanced metering infrastructure enables real-time monitoring, better demand management and customer service. In 2025, the company installed more than 100,000 smart meters in Massachusetts, advancing its multi-year plan to upgrade over 1.5 million meters statewide.
Eversource's strategic investment expands its electric distribution and transmission network, enhancing system reliability and supporting long-term financial growth. It aims to invest $5.07 billion in 2026 and about $26.5 billion through 2030, including $11.2 billion in electric and $6.8 billion in natural gas distribution. Eversource completed Revolution Wind onshore substation construction and started the $1.8B Cambridge underground substation project.
The company benefits from the divestiture of the South Fork and Revolution Wind projects. ES is directing its resources toward becoming a pure-play regulated utility, thereby delivering low-risk growth, supporting customers’ clean energy transition and ensuring more predictable earnings.
ES’ Headwinds
Eversource Energy relies on third-party vendors and service providers. Any inadequate performance by third parties may affect companies’ reputation, reduce operational efficiency, cause delays and lead to non-compliance issues.
Eversource Energy’s operations are subject to federal, state and local laws, as well as strict environmental regulations on emissions, pollution and waste management. Any change or modification to these rules and regulations may affect the company’s financial performance.
Price Performance of ES
In the past three months, Eversource Energy shares have declined 2.5% against the industry’s 8.4% growth.
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Stocks to Consider
Some better-ranked stocks in the same industry are CMS Energy Corporation CMS, Exelon Corporation EXC and FirstEnergy Corp. FE. All stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CMS, EXC and FE have dividend yields of 2.92%, 3.53% and 3.52%, respectively, which are better than the Zacks S&P 500 composite’s yield of 1.39%.
The Zacks Consensus Estimate for CMS Energy, Exelon and FirstEnergy’s 2026 EPS is pegged at $3.86, $2.85 and $2.73, suggesting year-over-year growth of 6.93%, 2.89% and 7.06%, respectively.
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Exelon Corporation (EXC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).