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Eversource Energy - AI Stock Analysis
Analysis generated June 26, 2024
Eversource Energy is a publicly-traded, investor-owned utility providing electricity, natural gas, and water service to approximately 4 million customers in Connecticut, Massachusetts, and New Hampshire. The company’s operations are diverse, including electric distribution, transmission, and natural gas distribution. Eversource Energy is committed to developing renewable energy solutions and maintaining a reliable and environmentally responsible energy grid.
Fundamental Analysis
For the last quarter, revenue was reported at $3.33 billion. This represents a solid increase of 23.69% compared to the quarter before it, suggesting positive growth. However, it’s important to note that there is a 12.20% decrease when compared to the same quarter last year. This year-over-year decline may signal potential challenges in maintaining consistent revenue growth.
The company's net income for the last quarter was $522 million. This is a substantial increase of 140.74% from the previous quarter and also shows a positive year-over-year growth of 5.84%. This signals improving profitability and operational efficiency.
EBITDA for the last quarter came in at $1.18 billion, reflecting an increase of 18.91% from the previous quarter and a significant year-over-year increase of 55.23%. These numbers indicate enhanced operational performance and robust growth in the company’s core earnings.
The current P/E ratio stands at 17.08. This metric appears to be within a normal range for utility stocks, suggesting that Eversource Energy is neither undervalued nor overvalued at its current level based on its earnings.
Technical Analysis
The current stock price of Eversource Energy is $56.62, which marks a 1.58% decrease compared to a month ago. Additionally, there has been a 16.92% decrease compared to a year ago, hinting at a bearish trend.
The SMA10 (Simple Moving Average for 10 days) is 57.49, which is lower than the previous SMA10 of 57.73, suggesting a potential downward trend in price movement. Furthermore, the RSI (Relative Strength Index) is at 50.3, indicating a neutral condition. This suggests that the stock is not currently overbought or oversold, but the current trends point towards caution.
Alternative Data Analysis
Starting with job postings and employee sentiment, Eversource Energy has 357 open positions, a decrease of 16% over the past couple of months. This reduction may indicate that the company is trying to improve its margins or cut costs, a strategy that may not support growth aspirations.
Regarding customer acquisition, the company has an estimated 2.5 million visitors to their webpage, but this figure is down by 46% in the last couple of months. This is concerning as it could signify a loss of customers. Additionally, there are an estimated 0 users downloading their mobile apps daily, a complete drop of 100%, further indicating a worrisome trend in customer engagement.
In terms of customer engagement, Eversource Energy has 8,100 followers on Instagram, with a 4% increase in the past couple of months, suggesting a slight uptick in interest. However, the company’s Twitter page has 24,000 followers, showing no growth and indicating stagnation in their social media presence.
Finally, AltIndex's AI score, which combines fundamental, technical, and alternative data analysis, assigned Eversource Energy a score of 40, suggesting a sell signal.
Conclusion
Based on the above analysis, Eversource Energy presents a mixed bag for potential investors. While its fundamental numbers show some short-term growth in revenue, net income, and EBITDA, the year-over-year decline in revenue and concerning trends in alternative data cannot be ignored. From a technical standpoint, the stock’s bearish trend, reduction in SMA, and neutral RSI further add to the cautious outlook.
Investors should particularly note the steep declines in website visitor numbers and mobile app downloads, which signal potential customer engagement issues. Employee sentiment and job posting trends also suggest possible internal challenges.
Considering all aspects, including the sell signal from AltIndex's AI score, I would recommend a hold or sell position on Eversource Energy at this time. It would be prudent to monitor the company's next few quarters’ performance closely before making any long-term commitments.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
