U.S. markets closed
  • S&P Futures

    4,146.50
    -7.00 (-0.17%)
     
  • Dow Futures

    33,092.00
    -63.00 (-0.19%)
     
  • Nasdaq Futures

    14,032.50
    -2.50 (-0.02%)
     
  • Russell 2000 Futures

    2,230.70
    +0.10 (+0.00%)
     
  • Crude Oil

    72.05
    +0.41 (+0.57%)
     
  • Gold

    1,771.90
    +2.90 (+0.16%)
     
  • Silver

    25.99
    +0.02 (+0.08%)
     
  • EUR/USD

    1.1872
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    1.4500
    -0.0610 (-4.04%)
     
  • Vix

    20.70
    +2.95 (+16.62%)
     
  • GBP/USD

    1.3824
    +0.0015 (+0.11%)
     
  • USD/JPY

    110.2320
    +0.0820 (+0.07%)
     
  • BTC-USD

    35,591.82
    +29.43 (+0.08%)
     
  • CMC Crypto 200

    887.42
    -52.53 (-5.59%)
     
  • FTSE 100

    7,017.47
    -135.96 (-1.90%)
     
  • Nikkei 225

    28,131.77
    -832.31 (-2.87%)
     

Here's Why I Think Eversource Energy (NYSE:ES) Might Deserve Your Attention Today

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Eversource Energy (NYSE:ES). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.

See our latest analysis for Eversource Energy

How Quickly Is Eversource Energy Increasing Earnings Per Share?

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. Over the last three years, Eversource Energy has grown EPS by 4.7% per year. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Eversource Energy's EBIT margins were flat over the last year, revenue grew by a solid 2.5% to US$8.7b. That's progress.

The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.

earnings-and-revenue-history
earnings-and-revenue-history

Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Eversource Energy.

Are Eversource Energy Insiders Aligned With All Shareholders?

Since Eversource Energy has a market capitalization of US$29b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. To be specific, they have US$47m worth of shares. That's a lot of money, and no small incentive to work hard. Despite being just 0.2% of the company, the value of that investment is enough to show insiders have plenty riding on the venture.

Is Eversource Energy Worth Keeping An Eye On?

One positive for Eversource Energy is that it is growing EPS. That's nice to see. Just as polish makes silverware pop, the high level of insider ownership enhances my enthusiasm for this growth. That combination appeals to me, for one. So yes, I do think the stock is worth keeping an eye on. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Eversource Energy (1 is concerning) you should be aware of.

Although Eversource Energy certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.