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) Gains From Investments in Infrastructure
Read MoreHide Full Article
Eversource Energy’s (ES - Free Report) long-term investment plan will help expand operations. The addition of clean assets in the generation portfolio is expected to further drive its performance.
However, this Zacks Rank #3 (Hold) stock faces risks related to project approvals and rising interest rates.
Tailwinds
Eversource pursues organic growth to expand operations. Systematic expenditure in Grid modernization and advanced meter infrastructure will assist the company in expanding and strengthening operations, as well as efficiently serving electric and natural gas customers. It forecasts a capital investment of $21.5 billion for the 2023-2027 period.
The company forayed into the water business by acquiring Aquarion Water Company in December 2017. Multiple other buyouts, like the New England Service Company and The Torrington Water Company, expanded its customer base and water business.
On May 26, 2023, ES announced that it has agreed to sell 50% interest in an uncommitted lease area of nearly 175,000 acres to Ørsted, located 25 miles off the south coast of Massachusetts. Despite its exit from the unregulated wind business, Eversource is fully committed to the region’s clean energy transition, with its regulated companies 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 failed to get approval. This will hurt the company’s growth plans. Risks related to substandard performance from third parties, interest rate increases, stringent regulations and breakdown and failure or damage of operating equipment are potential headwinds for the company. These, in turn, are likely to have an adverse impact on the company’s operation, hurting its utility revenues and margins.
OGE Energy’s long-term (three to five-year) earnings growth rate is pegged at 17.9%. It delivered an average earnings surprise of 19.9% in the last four quarters.
NiSource’s long-term earnings growth rate is pegged at 6.9%. It delivered an average earnings surprise of 0.5% in the last four quarters.
The Southern Company’s long-term earnings growth rate is pegged at 4%. It delivered an average earnings surprise of 11.4% in the last four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eversource (ES) Gains From Investments in Infrastructure
Eversource Energy’s (ES - Free Report) long-term investment plan will help expand operations. The addition of clean assets in the generation portfolio is expected to further drive its performance.
However, this Zacks Rank #3 (Hold) stock faces risks related to project approvals and rising interest rates.
Tailwinds
Eversource pursues organic growth to expand operations. Systematic expenditure in Grid modernization and advanced meter infrastructure will assist the company in expanding and strengthening operations, as well as efficiently serving electric and natural gas customers. It forecasts a capital investment of $21.5 billion for the 2023-2027 period.
The company forayed into the water business by acquiring Aquarion Water Company in December 2017. Multiple other buyouts, like the New England Service Company and The Torrington Water Company, expanded its customer base and water business.
On May 26, 2023, ES announced that it has agreed to sell 50% interest in an uncommitted lease area of nearly 175,000 acres to Ørsted, located 25 miles off the south coast of Massachusetts. Despite its exit from the unregulated wind business, Eversource is fully committed to the region’s clean energy transition, with its regulated companies 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 failed to get approval. This will hurt the company’s growth plans. Risks related to substandard performance from third parties, interest rate increases, stringent regulations and breakdown and failure or damage of operating equipment are potential headwinds for the company. These, in turn, are likely to have an adverse impact on the company’s operation, hurting its utility revenues and margins.
Stocks to Consider
Some better-ranked utilities in the same industry are OGE Energy (OGE - Free Report) , NiSource (NI - Free Report) and The Southern Company (SO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OGE Energy’s long-term (three to five-year) earnings growth rate is pegged at 17.9%. It delivered an average earnings surprise of 19.9% in the last four quarters.
NiSource’s long-term earnings growth rate is pegged at 6.9%. It delivered an average earnings surprise of 0.5% in the last four quarters.
The Southern Company’s long-term earnings growth rate is pegged at 4%. It delivered an average earnings surprise of 11.4% in the last four quarters.