Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric, gas, and water distribution service to more than 4 million customers in the Northeast U.S. The company expanded its service territories with acquisitions of NStar (2012), Aquarion (2017), and Columbia Gas (2020). In 2024 Eversource exited its 50% partnership with European utility Orsted to develop 2 gigawatts of offshore wind projects in the Northeast U.S. The company exited most of its unregulated businesses in 2006.

Eversource Energy is largely a pure-play transmission and distribution business. It provides electric service and natural gas to 4.4 million customers in Massachusetts, Connecticut, and New Hampshire. The utility has almost 60,000 circuit miles of transmission lines, of which about 30% are underground. Eversource's core subsidiaries are: Connecticut Light & Power, which serves most of Connecticut; Yankee Gas Services Co.; Public Service Co. of New Hampshire, which serves three-quarters of New Hampshire; NSTAR Electric, which serves eastern Massachusetts; NSTAR Gas, which serves customers in Boston and eastern Massachusetts; and Aquarian Water Co., which serves part of southern Connecticut. We note that many residences in Eversource's service region continue to use heating oil to heat their homes, which tightens the utility's demographic growth. In 2023, electricity transmission accounted for 42% of earnings, distribution for 40%, natural gas for 15%, and water distribution for 2%. Eversource recently completed a strategic review of its offshore wind investments, and is selling three wind assets and looking for a buyer for its water business. It is targeting carbon neutrality by 2030, in line with other pure-play transmission utilities. The company's market cap is about $24 billion.

U.S. stocks headed higher on Thursday following positive economic data. Retail sales rose 1%, above expectations for a 0.4% gain. Weekly jobless claims fell again this week to 227,000. The S&P 500 was up 1.6%, the Dow gained 1.4% and the Nasdaq rose 2.3%.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.