ES

Market Performance: The S&P 500 and Dow Jones closed up, while the Nasdaq 100 fell to a 6-1/2 month low amid concerns over US tariffs impacting the global economy. Defensive stocks and a rise in crude oil prices provided some market support despite overall mixed performance.

Economic Indicators: Positive economic news from the US and China, including unexpected rises in manufacturing PMIs, helped bolster market sentiment, although fears of recession due to tariffs continue to weigh on investor confidence.

Market Performance: The S&P 500 and Nasdaq 100 are experiencing significant declines, reaching 6-1/2 month lows due to concerns over US tariffs impacting the global economy, while the Dow Jones remains relatively stable.

Economic Indicators: Despite the market downturn, the US MNI Chicago PMI rose unexpectedly to a 16-month high, providing some support for stocks, alongside positive manufacturing data from China, although fears of recession persist due to ongoing tariff implementations.

Market Overview: The S&P 500 is up slightly while the Dow Jones has increased, but the Nasdaq is down. Global stock markets are mixed due to concerns over US tariffs impacting economic growth, with safe-haven assets like gold and government debt seeing increased demand.

Stock Movements: Major tech stocks are experiencing declines, particularly Tesla and Nvidia, while defensive utility and food producer stocks are gaining. Additionally, Moderna's shares have dropped significantly following regulatory news, and Mr Cooper Group's stock rose after an acquisition announcement.

Utilities and Healthcare Sector Performance: Utilities stocks are the worst performing sector with a 1.3% loss, led by Eversource Energy and Vistra Corp, while the Healthcare sector follows with a 1.0% loss, notably impacted by Merck & Co Inc and AbbVie Inc.

ETF Performance Overview: The Utilities Select Sector SPDR ETF is down 1.4% on the day but up 2.55% year-to-date, whereas the Health Care Select Sector SPDR ETF is down 1.3% today and up 6.02% year-to-date, reflecting mixed performances among their underlying holdings.

Dividend Predictability: Dividend amounts can be unpredictable and are influenced by a company's profitability, with Eversource Energy having a history of over 20 years of consecutive dividend growth.

Investment Insights: The article suggests reviewing the history of Eversource's dividends to assess the likelihood of maintaining a 5% annual yield and mentions other dividend stocks that have recently become available.

BofA's Stock Screening Strategy: Bank of America recommends investing in stocks that have historically performed well during market downturns, focusing on those with low crowding risk and minimal earnings volatility. They identified 36 high-quality stocks that have outperformed in at least 80% of significant market pullbacks since the 1980s.

Highlighted Stocks: Among the 36 stocks recommended by BofA are well-known companies such as Verizon, Costco, Johnson & Johnson, and Procter & Gamble, which are characterized by strong S&P quality ratings and underweight positions by active fund managers.

Market Overview: Wall Street has experienced a significant downturn, with the S&P 500 index entering correction territory due to factors like President Trump's trade war and various market pressures. ProShares suggests that investors should consider companies with strong fundamentals that are currently undervalued.

Investment Strategy: The S&P 500 Dividend Aristocrats index, which tracks companies that have consistently increased dividends for 25 years, has outperformed the S&P 500 this year. Investors are encouraged to focus on these quality stocks as potential opportunities amidst market volatility.

Market Performance: Major U.S. stock indexes, including the S&P 500, Dow Jones, and Nasdaq, fell to six-month lows due to escalating trade tensions and President Trump's tariff threats, despite positive labor market data showing a decline in jobless claims.

Stock Movements: Notable declines were seen in tech stocks like Meta and Apple, while defensive utility stocks rose; Intel gained significantly after announcing a new CEO, and mining stocks benefited from rising gold prices.

Market Performance: Major US stock indexes, including the S&P 500, Dow Jones, and Nasdaq, fell to six-month lows due to escalating trade tensions and President Trump's tariff threats, despite positive labor market data showing a decline in jobless claims.

Stock Movements: The overall market was pressured by declines in major tech stocks, with notable losses from Meta Platforms and Adobe, while defensive utility stocks rose. Additionally, mining stocks gained as gold prices reached record highs.

Eversource Energy Analysis: Eversource Energy (ES) has received a high rating of 68% from Validea's Multi-Factor Investor model, which focuses on low volatility stocks with strong momentum and high net payout yields, indicating moderate interest in the stock.

Pim van Vliet's Investment Strategy: Pim van Vliet, head of Conservative Equities at Robeco Asset Management, emphasizes that low volatility stocks can outperform high volatility ones with less risk, as outlined in his research and book "High Returns From Low Risk."

Mergers and Acquisitions Surge: The U.S. power industry is anticipating a significant increase in mergers and acquisitions in 2025, driven by rising demand for electricity from data centers and artificial intelligence, with notable deals already occurring early in the year.

Investment Opportunities and Challenges: Despite market volatility and potential hurdles such as tariffs and labor shortages, there remains strong interest from private equity and institutional investors in acquiring power assets, particularly those that support renewable energy and efficient infrastructure.

Stock Performance: ES's stock has a 52-week low of $54.75 and a high of $69.01, with the last trade recorded at $62.27.

Source Information: The data regarding ES's performance was sourced from Technical Analysis Channel.com, and the opinions expressed are those of the author, not necessarily reflecting Nasdaq, Inc.

ETF Analyst Target Prices: The Invesco S&P 500 QVM Multi-factor ETF (QVML) has an implied analyst target price of $40.78, indicating a potential upside of 17.45% from its current trading price of $34.72. Key holdings with significant upside include GE HealthCare Technologies, Eversource Energy, and C.H. Robinson Worldwide.

Investor Research Considerations: Analysts' optimistic target prices may reflect future expectations but could also lead to downgrades if they are based on outdated information. Investors are encouraged to conduct further research to assess the validity of these targets in light of recent developments.

Consumer Products Sector Performance: The Consumer Products sector is leading with a 1.7% increase, driven by Campbell's Company and Conagra Brands, which gained 6.6% and 5.8%, respectively. The iShares U.S. Consumer Goods ETF is also up 1.8% for the day and 9.80% year-to-date.

Utilities Sector Highlights: The Utilities sector has matched the Consumer Products sector's performance with a 1.7% rise, led by American Water Works Co. and Eversource Energy, gaining 4.8% and 4.1%. The Utilities Select Sector SPDR ETF is up 2.0% today and 2.29% year-to-date.

Eversource Energy Analysis: Eversource Energy (ES) is rated highly by Validea's Growth Investor model, achieving a score of 62% based on its fundamentals and valuation, indicating moderate interest from the strategy.

Martin Zweig Background: Martin Zweig, whose strategy is used for the analysis, had a successful investment newsletter with an average annual return of 15.9% over 15 years and is known for his significant wealth and unique collectibles.

Utilities and Healthcare Sector Performance: As of midday Friday, the Utilities sector is underperforming with a 0.1% loss, led by PG&E Corp and Eversource Energy, while the Healthcare sector also shows a 0.1% loss, primarily due to losses from DaVita Inc and Cooper Companies, Inc.

ETF Tracking and Year-to-Date Performance: The Utilities Select Sector SPDR ETF (XLU) is down 0.1% today but up 4.84% year-to-date, whereas the Health Care Select Sector SPDR ETF (XLV) is down 0.6% today and up 5.83% year-to-date, reflecting mixed performances among their underlying stocks.

Analyst Ratings: Evercore ISI analyst Durgesh Chopra maintains a Hold rating on Eversource Energy with a price target of $63.00, while the stock currently trades at $62.50. The consensus among analysts is also a Hold, with a price target of $64.60.

Financial Performance: Eversource Energy reported a quarterly revenue of $3.06 billion and a GAAP net loss of $118.06 million for the quarter ending September 30, contrasting with last year's revenue of $2.79 billion and a net profit of $339.66 million.

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Earnings Report: Eversource Energy reported a significant turnaround in its financial performance for 2024, achieving earnings of $811.7 million ($2.27 per share) compared to a loss of $(442.2) million in 2023, with notable improvements across its electric transmission, distribution, and natural gas segments.

Future Outlook: The company has outlined a five-year investment plan of $24.2 billion from 2025 to 2029, aiming for long-term growth of 5 to 7 percent, while also anticipating challenges in 2025 due to strategic divestments and increased operational investments.

Major Earnings Reports: Key companies reporting earnings after the market close on Tuesday include Energy Transfer LP, Gilead Sciences, W. P. Carey, Super Micro Computer, and Upstart Holdings.

Additional Earnings Releases: A wide range of other companies are also set to release their earnings, including ADC, AIG, LYFT, and SAGE among others.