Eversource Energy is largely a pure-play transmission and distribution business. It provides electric service and natural gas to 4.6 million customers (of which 3.4 million are electric 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. 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. The sale of its water operations, Aquarion, is expected to close by the end of 2025. Total operating revenues in 2024 were $11.9 billion with about 70% earned from Connecticut Light and Power and NSTAR. It is targeting carbon neutrality by 2030, in line with other pure-play transmission utilities. The company's market cap is about $24 billion.

Stocks are mixed at Wednesday midday. The Nasdaq is making a push to move higher, while the other indices are lower. Retailers are putting out their earnings and commenting on the economic environment and how they are grappling with tariffs. Some have seen sales stall, some are considering price hikes to counter the price increases due to tariffs. Several Fed officials speak today. The yield on the 10-year Treasury note is up 5 basis points at 4.53%. Oil is at $62 per barrel.

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.

Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric and gas distribution service to more than 4 million customers in the Northeast US. The company plans to sell its water utility, Aquarion, in 2025. Eversource 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 US. The company exited most of its unregulated businesses in 2006.