Group 1 - Utility companies are expected to have strong performance in 2024 and 2025 due to increased electricity consumption, particularly driven by data centers [1] - The market anticipates lower interest rates, which have already begun to decline, starting in Europe [1] Group 2 - The investment strategy combines fundamental analysis with options trading, focusing on various approaches such as income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] - The investment style includes 20-25 strategies involving options for purposes like hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1]

Group 1 - The article discusses the investment positions held by the author in specific companies, indicating a long position in SWDBY and SVNLF [1] - It emphasizes the importance of conducting personal due diligence and research before making any investment decisions [2] - The article clarifies that past performance does not guarantee future results and that no specific investment recommendations are being made [3]

Core Viewpoint - Eversource Energy has increased its liability related to future payments to Global Infrastructure Partners by approximately $285 million as part of the sale of the South Fork Wind and Revolution Wind projects, expected to close on September 30, 2024 [1] Financial Implications - The company anticipates realizing an approximate $210 million federal tax benefit associated with tax losses from the sales of the Offshore Wind Projects [1]

Core Viewpoint - Fitch Ratings has placed Eversource Energy and its utility subsidiaries on "rating watch negative" due to concerns that the Trump administration's stop-work order on the Revolution Wind offshore wind farm could financially weaken the company [1][4]. Group 1: Project and Financial Obligations - Eversource sold its 50% stake in the 700-MW offshore wind project to Global Infrastructure Partners (GIP) but remains responsible for certain project costs [2]. - Eversource is required to ensure that GIP receives a 13% pre-tax internal rate of return on its investment in the Revolution project [3]. - The company recorded approximately $360 million in liabilities when it sold its share in Revolution Wind, reflecting increased construction costs and delays [3]. Group 2: Risks and Uncertainties - The stop-work order introduces significant uncertainty and could lead to meaningful construction delays, resulting in large cost overruns or potential abandonment of the project [4]. - In a worst-case scenario, this situation could result in a one-notch credit rating downgrade for Eversource and its subsidiaries [4]. - Ørsted, which co-owns the Revolution project with GIP, has filed a lawsuit to lift the work-stop order, claiming the project is 80% complete [5]. Group 3: Capital Expenditure and Regulatory Environment - Eversource has a relatively low-risk $24 billion, five-year capital expenditure plan, which includes $10.2 billion for electric distribution facilities, $6.8 billion for FERC-regulated transmission, and $6 billion for natural gas distribution infrastructure [6]. - FERC-regulated transmission facilities constitute 36% of Eversource's rate base, with Connecticut and Massachusetts each accounting for 29% and New Hampshire for 6% [7]. - Fitch views FERC as one of the most constructive U.S. utility regulators due to its timely cost recovery and formulaic rates of return [7].

Core Points - Eversource Energy's Board of Trustees approved a quarterly dividend of $0.7525 per share, payable on September 30, 2025, to shareholders of record as of September 22, 2025 [1] - Eversource is recognized as the 1 U.S. utility on TIME's List of World's Best Companies for 2024, highlighting its corporate citizenship [1] - The company is involved in the transmission and delivery of electricity and natural gas [1]

Core Insights - Eversource Energy (ES) is enhancing its infrastructure to provide reliable electricity and natural gas services while expanding its renewable operations [1] - The company plans a capital investment of $24.2 billion from 2025 to 2029, focusing on electric and natural gas distribution networks and electric transmission [2][9] Investment Plans - ES will allocate nearly $2 billion for replacing aging infrastructure, $1.5 billion for a cable underground program, $1 billion for substation development, and $0.5 billion for clean energy initiatives through 2028 [3] - The company is developing a $1.5-$1.6 billion underground substation in Cambridge, MA, which is the first of its kind in the U.S. [3] Strategic Moves - In January 2025, ES announced the sale of Aquarion Water Company for $2.4 billion, allowing it to reinvest in core electric and natural gas operations and reduce parent company debt [4] Industry Context - Other utility companies, such as FirstEnergy, NextEra Energy, and PPL Corporation, are also investing heavily in their transmission and distribution infrastructure to enhance reliability and support the transition to cleaner energy [7][8][10] - FirstEnergy plans to invest $28 billion between 2025 and 2029 to modernize its infrastructure, while NextEra Energy's Florida Power & Light aims to invest nearly $21.7 billion in similar projects [8][10] - PPL intends to invest $20 billion from 2025 to 2028 to upgrade its infrastructure and improve service quality [11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding investors in selecting stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Company Spotlight: Eversource Energy - Eversource Energy, formerly Northeast Utilities, operates in energy delivery, serving customers in Connecticut, New Hampshire, and Massachusetts [11] - Currently rated 3 (Hold) with a VGM Score of B, Eversource has a Momentum Style Score of B and a recent share price increase of 0.5% [12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate for fiscal 2025 at $4.73 per share and an average earnings surprise of +2.9% [12]

Company Overview - Eversource Energy, previously known as Northeast Utilities, operates in the energy delivery sector, providing electricity and natural gas to residential, commercial, and industrial customers in Connecticut, New Hampshire, and Massachusetts [11]. Stock Performance - Eversource Energy is currently rated as 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid performance [12]. - The company has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 13.74, which may appeal to value investors [12]. Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for Eversource Energy, with the Zacks Consensus Estimate increasing to $4.73 per share [12]. - The company has demonstrated an average earnings surprise of +2.9%, suggesting a positive trend in earnings performance [12]. Investment Consideration - With a strong Zacks Rank and favorable Value and VGM Style Scores, Eversource Energy is recommended for investors' consideration [13].

Core Viewpoint - Long-term dividend stocks are generally more stable and provide consistent dividends due to their established nature and lower volatility compared to the broader market [1][2] Group 1: Waste Management - Waste Management Inc. is a significant player in the waste and recyclables collection industry, with a market capitalization exceeding $92 billion [4] - The company has a dividend yield of 1.40%, an annual dividend of $3.30, and a 22-year track record of increasing dividends, with a payout ratio of 48.96% [5] - In the second quarter of 2025, Waste Management reported a 19% year-over-year increase in revenue, alongside strong earnings per share (EPS) [6] - Operating expenses have decreased to less than 60% of revenue, contributing to a solid free cash flow projection of nearly $3 billion for the year [7] Group 2: Eversource Energy - Eversource Energy, a major utility provider in the northeast, has a dividend yield of 4.63% and an annual dividend of $3.01, but a high payout ratio of 129.18% [9] - The company managed to slightly increase its EPS to 96 cents, surpassing analyst expectations, and reaffirmed its full-year EPS guidance [10] - Eversource's revenue grew by 12% year-over-year, although it fell short of predictions, with a permanent rate increase in New Hampshire expected to provide stability [11] Group 3: Johnson & Johnson - Johnson & Johnson boasts a dividend yield of 3.00%, an annual dividend of $5.20, and an impressive 64-year history of dividend increases, with a payout ratio of 55.61% [12][13] - The company exceeded EPS predictions by 9 cents and revenue estimates by nearly $900 million in its mid-July earnings report [13] - Growth is driven by its innovative medicine business, particularly in oncology, with potential peak sales of $5 billion for its drug candidate TAR200 [14]

PART I – FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Eversource Energy and its key subsidiaries for the period ended June 30, 2025 [Eversource Energy and Subsidiaries Financials](index=6&type=section&id=Eversource%20Energy%20and%20Subsidiaries%20(Unaudited)) Eversource Energy reported increased net income and total assets for H1 2025, with a significant rise in net cash from operating activities to $2.1 billion Eversource Energy Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $60,956,100 | $59,594,529 | | Total Liabilities | $45,286,541 | $44,519,387 | | Total Common Shareholders' Equity | $15,665,791 | $15,039,387 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $6,956,423 | $5,866,097 | | Net Income Attributable to Common Shareholders | $903,517 | $857,190 | | Diluted EPS | $2.45 | $2.43 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $2,097,904 | $962,026 | [The Connecticut Light and Power Company (CL&P) Financials](index=10&type=section&id=The%20Connecticut%20Light%20and%20Power%20Company%20(Unaudited)) CL&P's H1 2025 net income increased to $294.9 million, driven by higher operating revenues and a substantial increase in cash from operations CL&P Condensed Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $16,962,290 | $16,839,845 | | Total Liabilities | $10,436,324 | $10,275,963 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $2,673,357 | $2,085,914 | | Net Income | $294,877 | $269,954 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $753,612 | $109,757 | [NSTAR Electric Company Financials](index=14&type=section&id=NSTAR%20Electric%20Company%20and%20Subsidiary%20(Unaudited)) NSTAR Electric's H1 2025 net income rose to $336.1 million, supported by revenue growth and ongoing investment in property, plant, and equipment NSTAR Electric Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $18,728,993 | $18,075,248 | | Total Liabilities | $11,814,065 | $11,159,442 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $1,883,152 | $1,792,683 | | Net Income | $336,104 | $317,580 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $393,610 | $341,373 | [Public Service Company of New Hampshire (PSNH) Financials](index=18&type=section&id=Public%20Service%20Company%20of%20New%20Hampshire%20and%20Subsidiaries%20(Unaudited)) PSNH's net income grew significantly to $130.2 million in H1 2025, with cash from operations more than doubling due to improved performance PSNH Condensed Consolidated Financial Highlights (in thousands) | Financial Metric | As of/For the Six Months Ended June 30, 2025 | As of/For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Balance Sheet** | | *(vs. Dec 31, 2024)* | | Total Assets | $6,833,025 | $6,641,941 | | Total Liabilities | $4,096,029 | $3,935,139 | | **Income Statement** | | *(vs. H1 2024)* | | Operating Revenues | $651,114 | $613,427 | | Net Income | $130,194 | $99,800 | | **Cash Flow Statement** | | *(vs. H1 2024)* | | Net Cash Flows Provided by Operating Activities | $191,934 | $76,489 | [Combined Notes to Condensed Financial Statements](index=22&type=section&id=Combined%20Notes%20to%20Condensed%20Financial%20Statements%20(Unaudited)) The notes detail accounting policies, regulatory assets, debt structure, contingencies, and the pending sale of the Aquarion water business - Total regulatory assets were **$6.73 billion** as of June 30, 2025, representing incurred costs probable of future recovery in customer rates[80](index=80&type=chunk) - In H1 2025, the company's subsidiaries issued approximately **$1.73 billion in new long-term debt** to repay short-term debt and fund capital expenditures[109](index=109&type=chunk) - Eversource has recorded a reserve of **$39.1 million** for the second FERC ROE complaint period, representing the difference between billed rates and a potential lower ROE[131](index=131&type=chunk) - A contingent liability of **$296 million** was recorded as of June 30, 2025, related to post-closing obligations from the sale of offshore wind projects[144](index=144&type=chunk) - Eversource agreed to sell its Aquarion water business for an enterprise value of approximately **$2.4 billion**, with assets and liabilities now classified as held for sale[174](index=174&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2025 financial results, segment performance, and capital expenditures, reaffirming full-year EPS guidance and long-term growth targets [Eversource Energy and Subsidiaries MD&A](index=45&type=section&id=Eversource%20Energy%20and%20Subsidiaries%20MD%26A) The company reaffirmed its 2025 EPS guidance of $4.67-$4.82, driven by rate increases and infrastructure investment, while progressing with the sale of its water business Earnings Per Share (EPS) by Business Segment | Segment | Q2 2025 EPS | Q2 2024 EPS | H1 2025 EPS | H1 2024 EPS | | :--- | :--- | :--- | :--- | :--- | | Electric Distribution | $0.44 | $0.42 | $0.95 | $0.90 | | Electric Transmission | $0.56 | $0.54 | $1.11 | $1.04 | | Natural Gas Distribution | $0.10 | $0.08 | $0.68 | $0.61 | | Water Distribution | $0.04 | $0.02 | $0.05 | $0.04 | | **Total Regulated** | **$1.14** | **$1.06** | **$2.79** | **$2.59** | - The company reaffirmed its **2025 EPS guidance of $4.67 to $4.82** and its long-term EPS growth rate projection of **5-7% through 2029**[189](index=189&type=chunk) - The NHPUC approved a permanent rate increase of **$100.7 million** for PSNH and established an authorized ROE of **9.5%**, effective August 1, 2025[188](index=188&type=chunk)[260](index=260&type=chunk) - The Greater Cambridge Energy Program, a major underground transmission project, was approved with a total estimated cost of **$1.84 billion**[224](index=224&type=chunk) [CL&P, NSTAR Electric, and PSNH MD&A](index=61&type=section&id=CL%26P%2C%20NSTAR%2C%20and%20PSNH%20MD%26A) All major electric utility subsidiaries reported increased earnings in H1 2025, driven by higher transmission earnings and base distribution rate increases - CL&P's H1 2025 earnings increased by **$24.9 million**, driven by higher transmission earnings and capital tracking mechanism revenues[326](index=326&type=chunk) - NSTAR Electric's H1 2025 earnings increased by **$18.5 million**, primarily due to a base distribution rate increase and higher transmission earnings[329](index=329&type=chunk) - PSNH's H1 2025 earnings increased by **$30.4 million**, largely due to a base distribution rate increase and higher transmission earnings[330](index=330&type=chunk) - CL&P's operating cash flow for H1 2025 surged to **$753.6 million** from $109.8 million in H1 2024, mainly due to improved regulatory recoveries[331](index=331&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risk is minimal, as commodity costs are passed to customers and all long-term debt is at fixed rates - The company's regulated businesses have **no material exposure** to loss of future earnings from commodity price risk, as energy costs are passed on to customers[335](index=335&type=chunk) - Interest rate risk is significantly mitigated as **all of the company's long-term debt carried a fixed interest rate** as of June 30, 2025[336](index=336&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal controls - Management concluded that the disclosure controls and procedures for Eversource and its reporting subsidiaries were **effective** as of June 30, 2025[340](index=340&type=chunk) - **No material changes** to internal controls over financial reporting occurred during the quarter ended June 30, 2025[341](index=341&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports no material legal proceedings or material changes to previously disclosed proceedings from its 2024 Form 10-K - There have been **no material legal proceedings** identified and no material changes with regard to legal proceedings previously disclosed in the 2024 Form 10-K[343](index=343&type=chunk) [Risk Factors](index=66&type=section&id=ITEM%201A.%20Risk%20Factors) The company states there have been no additional risk factors identified and no material changes to those previously disclosed in its 2024 Form 10-K - There have been **no additional risk factors** identified and no material changes to the risk factors previously disclosed in the 2024 Form 10-K[344](index=344&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company purchased 2,920 of its own common shares during the quarter at an average price of $63.98 per share for its 401k plan Common Share Purchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 2 | $55.05 | | May 2025 | 0 | N/A | | June 2025 | 2,918 | $63.99 | | **Total** | **2,920** | **$63.98** | [Other Information](index=67&type=section&id=ITEM%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - **No directors or officers** adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[349](index=349&type=chunk) [Exhibits](index=68&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files