Eversource Energy to Benefit From Strategic Infrastructure Investments

Eversource Energy ES has been making strategic investments to strengthen its transmission and distribution networks. Grid modernization and investments in advanced metering infrastructure are improving operational efficiency and service reliability, which should attract more customers to its services.The company’s long-term (three to five years) earnings growth rate is projected at 5.92%.TailwindsEversource has outlined a long-term capital investment plan of $24.2 billion for the 2025-2029 period, including nearly $16.2 billion for electric and natural gas distribution networks and $6.8 billion for the electric transmission segment. The company also expects additional capital investment potential of $1.5-$2.0 billion over the same time frame.ES also plans to invest nearly $2 billion in replacing aging infrastructure, $1.5 billion in its cable undergrounding program, $1 billion in substation development, and $0.5 billion in clean energy initiatives through 2028.Eversource Energy’s customer-focused investments in electric transmission and distribution are supported by constructive regulatory mechanisms, ensuring timely cost recovery for the majority of its businesses. The consistent performance and investments are likely to support long-term earnings per share growth of 5-7% from 2024 base.HeadwindsIn January 2025, the company announced a definitive agreement to sell Aquarion Water Company to the Aquarion Water Authority for $2.4 billion. In November 2025, Connecticut’s Public Utilities Regulatory Authority (PURA) halted the proposal citing concerns over possible rate hikes and insufficient regulatory oversight, leading Eversource Energy to pursue alternative financing and explore a new rate case for Aquarion Water.Eversource Energy outsources certain business activities to third-party suppliers and service providers. If these companies do substandard work, it could harm the company’s business, reputation and its operations.Price PerformanceOver the past year, ES shares have risen 15.3%, but lagged behind the industry’s growth of 18.9%.Zacks Rank & Stocks to ConsiderES currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are The AES Corporation AES, NextEra Energy, Inc. NEE and PG&E Corporation PCG, 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.AES, NextEra, and PG&E delivered an average earnings surprise of 14.68%, 4.39%, and 0.47%, respectively, over the last four quarters.The Zacks Consensus Estimate for AES’ 2025 earnings per share (EPS) has moved up 0.46% in the past 60 days.The consensus mark for NEE and PCG’s 2025 EPS has remained constant at $3.69 and $1.50, respectively, over the said time frame. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis Report Eversource Energy (ES): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks