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.
Reasons to Add Eversource Energy (ES) to Portfolio Right Now
Read MoreHide Full Article
Eversource Energy’s (ES - Free Report) ongoing systematic investments in transmission and distribution networks, acquisitions and the expansion of renewable operations, along with stable financial conditions, will drive its performance in the long run.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projection
The Zacks Consensus Estimate for 2022 earnings has moved up by 0.2% in the past 60 days to $4.11 per share.
The Zacks Consensus Estimate for 2023 earnings has moved up by 0.2% in the past 60 days to $4.38 per share.
Eversource Energy’s long-term (three to five years) earnings growth is projected at 6.2%.
Dividend
Eversource Energy has a long history of dividend payments and has paid dividends to shareholders consecutively since 1984. ES aims at increasing the dividend rate annually in the range of 5-7%, subject to the approval of the Board of Directors. The new quarterly dividend for 2022 is 64 cents per share, representing a 6.7% increase from 2021.
Stable Investments & Emissions Reduction
Eversource Energy is currently focused on upgrading electric distribution and transmission infrastructure. Eversource Energy forecasts capital investments of $18.1 billion within the 2022-2026 period. Out of the total, the company has plans to invest $3,897 million in 2022. It has plans to invest nearly $11,549 million between 2022 and 2026 in the electric and natural distribution network, $4,600 million in the electric transmission segment and $889 million in the water distribution segment in the same period. Also, ES has plans to invest nearly $400 million over the next five years in grid modernization and electric vehicle-charging infrastructure in Massachusetts, which will assist the company in serving customers more efficiently.
Eversource Energy announced its plan to reduce carbon emissions through a series of targeted steps. The company plans to reduce greenhouse gas emissions and aims to achieve carbon neutrality by 2030 through the ongoing fleet replacement, lowering methane gas emissions from gas distribution systems, reducing electric line losses and other emission-reduction initiatives.
Expanding Operation in Water Industry
Given impressive prospects in the water industry, Eversource Energy is trying to expand the water business through inorganic ways. Recently, ES’s unit, Aquarion Company, entered into an agreement to acquire The Torrington Water Company (TWC) in Connecticut. This acquisition would expand the water distribution business and would add nearly 10,100 customers to its customer base.
Price Performance
In the past year, Eversource Energy has rallied 4.1% compared with the industry’s 8.7% growth.
The long-term earnings growth of Atmos Energy, Xcel Energy and National Grid Transco is projected at 7.3%, 6.4% and 7.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings per share of Atmos Energy, Xcel Energy and National Grid Transco has moved up 7.6%, 7.4% and 16.6%, respectively, year over year.
In the past three months, ATO, XEL and NGG’s shares have surged 15.2%, 3.5% and 8.3%, respectively.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Reasons to Add Eversource Energy (ES) to Portfolio Right Now
Eversource Energy’s (ES - Free Report) ongoing systematic investments in transmission and distribution networks, acquisitions and the expansion of renewable operations, along with stable financial conditions, will drive its performance in the long run.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projection
The Zacks Consensus Estimate for 2022 earnings has moved up by 0.2% in the past 60 days to $4.11 per share.
The Zacks Consensus Estimate for 2023 earnings has moved up by 0.2% in the past 60 days to $4.38 per share.
Eversource Energy’s long-term (three to five years) earnings growth is projected at 6.2%.
Dividend
Eversource Energy has a long history of dividend payments and has paid dividends to shareholders consecutively since 1984. ES aims at increasing the dividend rate annually in the range of 5-7%, subject to the approval of the Board of Directors. The new quarterly dividend for 2022 is 64 cents per share, representing a 6.7% increase from 2021.
Stable Investments & Emissions Reduction
Eversource Energy is currently focused on upgrading electric distribution and transmission infrastructure. Eversource Energy forecasts capital investments of $18.1 billion within the 2022-2026 period. Out of the total, the company has plans to invest $3,897 million in 2022. It has plans to invest nearly $11,549 million between 2022 and 2026 in the electric and natural distribution network, $4,600 million in the electric transmission segment and $889 million in the water distribution segment in the same period. Also, ES has plans to invest nearly $400 million over the next five years in grid modernization and electric vehicle-charging infrastructure in Massachusetts, which will assist the company in serving customers more efficiently.
Eversource Energy announced its plan to reduce carbon emissions through a series of targeted steps. The company plans to reduce greenhouse gas emissions and aims to achieve carbon neutrality by 2030 through the ongoing fleet replacement, lowering methane gas emissions from gas distribution systems, reducing electric line losses and other emission-reduction initiatives.
Expanding Operation in Water Industry
Given impressive prospects in the water industry, Eversource Energy is trying to expand the water business through inorganic ways. Recently, ES’s unit, Aquarion Company, entered into an agreement to acquire The Torrington Water Company (TWC) in Connecticut. This acquisition would expand the water distribution business and would add nearly 10,100 customers to its customer base.
Price Performance
In the past year, Eversource Energy has rallied 4.1% compared with the industry’s 8.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other similar-ranked stocks from the same industry include Atmos Energy Corp. (ATO - Free Report) , Xcel Energy Inc. (XEL - Free Report) and National Grid Transco (NGG - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth of Atmos Energy, Xcel Energy and National Grid Transco is projected at 7.3%, 6.4% and 7.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings per share of Atmos Energy, Xcel Energy and National Grid Transco has moved up 7.6%, 7.4% and 16.6%, respectively, year over year.
In the past three months, ATO, XEL and NGG’s shares have surged 15.2%, 3.5% and 8.3%, respectively.