Eversource Energy (ES) just posted quarterly earnings that came in below Wall Street expectations, reporting $0.92 per share on revenue of $2.98 billion. The company also tightened its full-year earnings outlook for 2026.
Despite the earnings miss, Eversource Energy shares have pushed higher in the short term, with a 1-day share price return of 2.07%, a 7-day gain of 5.32%, and a 30-day return of 8.92%, while the 90-day share price return is down 2.22% and the 1-year total shareholder return is 1.10%. This suggests that recent buying interest is building momentum after a softer stretch.
Scan how other regulated utilities with similar earnings pressures are trading right now by reviewing our curated 41 power grid technology and infrastructure stocks alongside Eversource Energy.
Bulls see a regulated utility with steady earnings guidance and fresh momentum. Bears point to the recent earnings miss and valuation risks. Which side does the current pricing of Eversource Energy actually support?
Most Popular Narrative: 2% Undervalued
Eversource Energy last closed at $70.46, slightly below the most followed fair value estimate of $72.00 that uses a 7.52% discount rate. That small gap frames the stock as modestly cheap, but only if the long term investment plan and regulatory backdrop play out as expected.
Accelerated investment in grid modernization continues, supported by a 5 year US$26.5b capital plan through 2030 and potential upside from nearly US$1b of advanced metering infrastructure in Connecticut and new substations. These investments could improve reliability and operating efficiency and support net margins.
See why 20 investors see Eversource Energy as 2% undervalued.
Result: Fair Value of $72.00 (UNDERVALUED)
Still, Eversource Energy faces ongoing pressure from lower allowed transmission returns and unresolved storm cost disputes that could unsettle the current fair value narrative.
Find out about the key risks to this Eversource Energy narrative.
Another View: DCF Flags a Richer Price
The fair value story around Eversource Energy looks very different when using the SWS DCF model. On this framework, the stock at $70.46 sits above an estimated future cash flow value of $58.70, which frames the shares as overvalued rather than modestly cheap. That split in signals leaves a simple question: Which set of assumptions do you trust more, earnings multiples or long range cash flow math?
For a closer look at how this cash flow view is built step by step, take a moment to review the Look into how the SWS DCF model arrives at its fair value..
