Why Eversource Energy (ES) is a Top Growth Stock for the Long-Term

Zacks Premium highlights its proprietary Style Scores (Value, Growth, Momentum, and VGM) as a complementary tool to the Zacks Rank, which has historically driven a +23.75% average annual return for #1-ranked stocks since 1988. The methodology recommends combining a #1 or #2 Zacks Rank with an A or B Style Score for optimal portfolio performance. As a current example, Eversource Energy (ES) is presented as a compelling growth stock despite its #3 (Hold) Zacks Rank, boasting an A VGM Score and B Growth Score, supported by a projected 3.5% year-over-year earnings growth and recent upward analyst revisions for fiscal 2025, with the consensus estimate now at $4.73 per share.

Analysis

Eversource Energy (ES) presents a nuanced investment case based on the provided metrics. While the stock carries a neutral Zacks Rank of #3 (Hold), its underlying quantitative scores indicate strength, specifically a top-tier VGM (Value, Growth, Momentum) Score of 'A' and a favorable Growth Score of 'B'. This positive growth outlook is substantiated by a forecast for 3.5% year-over-year earnings growth in the current fiscal year. Furthermore, analyst sentiment for fiscal 2025 is trending positively, with three analysts revising their earnings estimates upward in the last 60 days, establishing a consensus estimate of $4.73 per share. The company also demonstrates a consistent ability to outperform expectations, boasting an average earnings surprise of +2.9%. The combination of these factors suggests that while broad earnings revision momentum may be neutral, specific growth and fundamental attributes are compelling.

Key Decisions for Investors

• Given the conflict between the neutral #3 (Hold) Rank and the strong 'A' VGM and 'B' Growth scores, investors should treat ES as a potential long-term growth position rather than a short-term momentum play.
• The modest 3.5% earnings growth forecast, combined with a history of positive earnings surprises, positions ES as a potentially stable holding for portfolios seeking defensive growth in the utilities sector.
• Investors should monitor for a potential upgrade in the Zacks Rank from #3 to #2, as this would serve as a key catalyst and confirmation of the positive underlying fundamentals highlighted by the Style Scores and recent upward analyst revisions for FY2025.