Regulated electric utilities often support retirement portfolios with steady income, but Edison International, Eversource Energy, and PG&E are trading below 52-week highs with unusual volatility and valuations at single-digit to low-teens earnings multiples. The stocks trail the S&P 500 over the past month and face different overhangs. Eversource has improved its funds from operations to debt metrics after exiting offshore wind and selling Aquarion, but the market has not fully rewarded the progress. Storm costs remain under prudency review, and management plans an $800 million to $1.1 billion equity raise through 2030 to fund a $26.5 billion capital plan. Valuation is around 14x trailing and forward earnings, with a dividend yield near 4.7% and a higher quarterly payout, while guidance supports modest long-term growth.
"Eversource is the cleanest regulated story after exiting offshore wind and selling Aquarion, improving its funds from operations (FFO)-to-debt ratio by over 400 basis points at Moody's and 300 basis points at S&P over the prior 12 months. The market has yet to reward that work. Shares trade around $67.02, down 2.4% over the past month and essentially flat year-to-date, against a 52-week high of $72.08."
"Q4 2025 GAAP EPS came in at $1.12 versus $1.14 estimates, and full-year 2025 non-GAAP EPS of $4.76 compared with the $4.74 estimate. Storm costs are still under prudency review, and management plans an $800 million to $1.1 billion equity raise through 2030 to fund a $26.5 billion five-year capital plan."
"Valuation is fair at a 14x trailing P/E and 14x forward, with dividend yield near 4.7% and the quarterly payout lifted to $0.7875 in Q1 2026. Guidance for 2026 EPS of $4.80 to $4.95 and 5% to 7% long-term growth is solid, but dilution ahead and unresolved storm costs limit upside."
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