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Eversource (ES) to Gain From Investments & Renewable Expansion
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Eversource Energy’s (ES - Free Report) long-term capital investment plans to further expand its infrastructure and renewable operations should boost its overall performance. The company has plans to expand its water business through acquisitions.
However, this Zacks Rank #3 (Hold) company has to face risks related to stringent regulations and substandard performance from third parties.
Tailwinds
Eversource operates a capital-intensive business with relatively steady revenue streams. It is currently focused on upgrading its electric distribution and transmission infrastructure. The company expects a capital investment of $23.1 billion during 2024-2028, out of which it plans to invest nearly $16.1 billion in electric and natural gas distribution networks and $7.2 billion in the electric transmission segment.
The company is in advanced talks to sell its 50% ownership interest in Revolution Wind, Sunrise Wind and South Fork Wind to an undisclosed bidder. These projects have a total capacity of 1,758 megawatt (MW).
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 MW of offshore wind generation to reach the homes and businesses of Southern New England.
Eversource is also focused on improving the quality of water services to customers in Connecticut. The company has a long-term investment plan for its water business. During the 2024-2028 period, it plans to invest $1.1 billion in the water distribution business to further strengthen operations and serve the expanding customer base more efficiently.
Headwinds
The company’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations. The introduction of new mandates could impact its financial performance.
Eversource outsources certain business functions to third-party suppliers and service providers. Substandard performance by these third parties could harm its business, reputation and results of operations.
NiSource’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for NI’s 2024 EPS implies an improvement of 6.9% from the bottom line recorded in 2023.
UTL’s long-term earnings growth rate is 7.08%. The Zacks Consensus Estimate for UTL’s 2024 EPS implies an improvement of 3.6% from the bottom line recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS implies a year-over-year decrease of 67.5%. The company delivered an average earnings surprise of 142.6% in the last four quarters.
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Eversource (ES) to Gain From Investments & Renewable Expansion
Eversource Energy’s (ES - Free Report) long-term capital investment plans to further expand its infrastructure and renewable operations should boost its overall performance. The company has plans to expand its water business through acquisitions.
However, this Zacks Rank #3 (Hold) company has to face risks related to stringent regulations and substandard performance from third parties.
Tailwinds
Eversource operates a capital-intensive business with relatively steady revenue streams. It is currently focused on upgrading its electric distribution and transmission infrastructure. The company expects a capital investment of $23.1 billion during 2024-2028, out of which it plans to invest nearly $16.1 billion in electric and natural gas distribution networks and $7.2 billion in the electric transmission segment.
The company is in advanced talks to sell its 50% ownership interest in Revolution Wind, Sunrise Wind and South Fork Wind to an undisclosed bidder. These projects have a total capacity of 1,758 megawatt (MW).
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 MW of offshore wind generation to reach the homes and businesses of Southern New England.
Eversource is also focused on improving the quality of water services to customers in Connecticut. The company has a long-term investment plan for its water business. During the 2024-2028 period, it plans to invest $1.1 billion in the water distribution business to further strengthen operations and serve the expanding customer base more efficiently.
Headwinds
The company’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations. The introduction of new mandates could impact its financial performance.
Eversource outsources certain business functions to third-party suppliers and service providers. Substandard performance by these third parties could harm its business, reputation and results of operations.
Stocks to Consider
Some better-ranked stocks from the same industry are NiSource Inc. (NI - Free Report) , Unitil Corporation (UTL - Free Report) and TransAlta (TAC - 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.
NiSource’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for NI’s 2024 EPS implies an improvement of 6.9% from the bottom line recorded in 2023.
UTL’s long-term earnings growth rate is 7.08%. The Zacks Consensus Estimate for UTL’s 2024 EPS implies an improvement of 3.6% from the bottom line recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS implies a year-over-year decrease of 67.5%. The company delivered an average earnings surprise of 142.6% in the last four quarters.