Is Eversource Energy (ES) Becoming More Panic-Prone?

Undoubtedly, Eversource Energy (NYSE:ES) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to rise heading into short-terms. The shares accumulated 0.32 points or 0.45 percent at $70.92 with a heavy trade volume of 1.963 million shares. After opening the session at $70.75, the shares went as high as $71.27 and as low as $70.38, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.5 billion and now has 317.38 million shares outstanding. Eversource Energy (ES) stock has gained 0.91 percent of market value in 21 trading days.

ES stock has a trailing 3-year beta of 0.33, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.26 a share in the trailing twelve months. The stock’s value has surged 9.04 percent year to date (YTD) against a rise of 25.12 percent in 12 month’s time. The company’s shares still trade 0.13 percent away from its 1-year high of $70.83 and 34.42 percent up from 52-week low of $52.76. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Eversource Energy (ES) will probably climb -0.82 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $77-month high price target. This represents a whopping 8.57 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $72, which represents a return potential of 1.52 percent when compared to the closing price of the stock of $70.92 on Thursday, March 14. The lowest price target for the stock is $63 — slightly more than -11.17 percent from ES’s current share price.

History has shown that shares in Eversource Energy have gone down on 9 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of ES’s Q1 earnings on May 01. Analysts are forecasting revenue to climb 1 percent to $2.31B in the fiscal first quarter, while earnings are seen soaring by nearly 9.41 percent to $0.93 per share. It earned $0.73 per share, worse than the $0.76, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.03B, better than the $1.68B analysts expected. Earnings are estimated to increase by 5.1 percent this year, 6.15 percent next year and continue to increase by 5.88 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $70.44. Below this, the next support is placed in the zone of $69.97. Till the time, the ES stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.7 on daily chart, which may remain a cause for concern. If the price breaks below $69.97 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $71.33 mark may result into a pull-back move towards $71.75 level.

Shares of Eversource Energy (ES) are trading at a P/E ratio of 19.51 times earnings reported for the past 12 months. The industry ES operates in has an average P/E of 13.29. Its P/E ratio went as low as 17.05X and as high as 20.73 over the 5-year span.Further, it is sporting a 2.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.19.