Eversource Energy Readies For Market Breakout Following Wind Exit

Utility investors hunting for under-the-radar opportunities are turning their attention toward Eversource Energy. According to CNBC, market analysts Josh Brown and Sean Russo of Ritholtz Wealth Management highlighted the company as an individual name ready to break out. Eversource traces its corporate lineage back to the Hartford Electric Light Company, founded in 1878—the same year Thomas Edison developed the light bulb. Formally assembled as Northeast Utilities in 1966 and rebranded as Eversource in 2015 following a merger with NSTAR, the enterprise operates as the first new multi-state public utility created since the New Deal.

Core Infrastructure and Financial Turnaround at Eversource Energy

Serving approximately 4.6 million customers across Connecticut, New Hampshire, and Massachusetts, Eversource boasts $64 billion in total assets. As CNBC notes, the company owns the transmission and distribution infrastructure that moves power, ensuring it collects a regulated return on every dollar invested to meet rising electricity demand.

That operational focus marks a turnaround from prior years. The stock lagged peers over a trailing five-year period, compounding at just 1.3% annually due to an offshore wind venture that generated a $1.26 per share net loss in fiscal 2023. After management completely exited the offshore wind sector, earnings per share recovered to $2.27 in 2024 and reached $4.56 on a GAAP basis in 2025. Furthermore, on June 30, Eversource closed the sale of Aquarion, its water utility subsidiary, cementing its status as a pure-play regulated electric and gas company.

Multi-Billion Capital Expenditure and Regional Electricity Demand

The forward-looking investment thesis rests heavily on capital expenditure. Eversource plans to invest $26.5 billion between 2026 and 2030, allocating $11.2 billion toward electric distribution, $7.2 billion to transmission, and $6.8 billion to gas infrastructure, according to CNBC. Regulators in Massachusetts have already approved the company’s Electric Sector Modernization Plan, which targets a 180% increase in electrification investment to support 2.5 million electric vehicles and 1 million residential heat pumps statewide.

Electricity consumption across New England is projected to grow 15% by 2035 and 50% by 2045. Regulators earlier this year reduced the base return on equity for New England transmission owners from 10.57% to 9.57%, creating roughly a $70 million annual after-tax hit. This regulatory adjustment prompted Eversource to lower its 2026 non-GAAP EPS guidance to a range of $4.57 to $4.72, down from the previous $4.80 to $4.95 projection.

Second-Quarter Earnings and Market Valuation Metrics

Despite absorbing a $43.9 million after-tax charge in the first quarter, Eversource posted $1.73 in non-GAAP EPS, topping the $1.59 consensus estimate. Management currently guides to 5% to 7% EPS growth through 2030, targeting the upper half of that range by 2028.

Wall Street expectations for the second-quarter earnings report call for roughly $3 billion in revenue—representing a 5% year-over-year increase—and $0.90 in EPS, reflecting a year-over-year decline as the lower regulatory return on equity flows through. With the stock up 11.2% over the past three months and 20.9% over the past year, market participants are watching the incoming earnings report and conference call for guidance updates and confirmation that earnings compounding will continue.