Should You Hold Eversource (ES) Stock In Your Portfolio Now?

Eversource Energy (NYSE:ES) transmits and delivers electricity and natural gas to more than 3.7 million residential, commercial and industrial customers in Connecticut, New Hampshire and Massachusetts.

Retaining this energy delivery company in your portfolio now is a good idea, given the following positive factors.

Positive Growth Projections: The Zacks Consensus Estimate for earnings is $3.17 on revenues of $7.86 billion for 2017. While the bottom line expanded 7.1% year over year, the top-line projection is 2.9% higher. For 2018, the Zacks Consensus Estimate for earnings is pegged at $3.33 on $8.14 billion revenues. While earnings represent 5.1% rally, revenues reflect a 3.6% rise.

Eversource has long-term expected earnings per share growth rate of 6%.

Estimates Moving Up: The Zacks Consensus Estimate has witnessed upward revisions in the last 30 days. Estimates for 2017 have inched up 0.3% in the last 60 days.

Growth Drivers

Eversource pursues organic growth strategy to expand its operations. It is currently focused on upgrading its distribution and utility transmission infrastructure. The company has plans to invest $9.6 billion from 2017 to 2020. Eversource aims to invest nearly $5.3 billion to strengthen its electric and natural gas distribution operations.

These regulated investments will help the company boost its earnings per share by 5-7% over 2017-2020 from the 2016 level of $2.96. The company plans to increase dividend annually at a rate that is consistent with its projected earnings growth rate of 5-7%.

Eversource has been able to manage its expenditure efficiently. The company achieved an overall average O&M expense reduction of 4% to 5% in the last four years, exceeding cost reduction goal of 3-4% in a year. These cost reduction initiatives will boost margins. The company will carry on with these cash deduction initiatives in 2017 as well.

Other Stocks to Consider

Other stocks from the same industry worth considering are Algonquin Power & Utilities Corp. (TO:AQN) , CenterPoint Energy Inc. (NYSE:CNP) and Pinnacle West Capital Corporation (NYSE:PNW) .

Algonquin Power & Utilities, CenterPoint Energy and Pinnacle West Capital Corporation have a long-term earnings growth rate of 15%, 4.3% and 5.2%, respectively. Dividend yield of these aforesaid companies are 4.59%, 4.22% and 3.77%, respectively, all them exceeding the S&P 500 yield of 1.83%

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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

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