Consolidated Edison, Inc. (ED), headquartered in New York, engages in the regulated electric, gas, and steam delivery businesses. With a market cap of $33.4 billion, the company is committed to providing safe and reliable energy services to millions of customers across its service territories.
Shares of this leading utility have underperformed the broader market considerably over the past year. ED has gained 6.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024, ED’s stock rose 6%, compared to the SPX’s 23.1% rise on a YTD basis.
Narrowing the focus, ED’s underperformance is apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 28.3% over the past year. Moreover, the ETF’s 25.1% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Nov. 7, ED shares closed down more than 1% after reporting its Q3 results. Its adjusted EPS of $1.68 exceeded Wall Street expectations of $1.56. The company’s revenue was $4.1 billion, topping Wall Street forecasts of $4 billion. ED expects full-year adjusted EPS to be between $5.30 and $5.40.
For the current fiscal year, ending in December, analysts expect ED’s EPS to grow 5.1% to $5.33 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 18 analysts covering ED stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, nine “Holds,” and five “Strong Sells.”
This configuration is more bullish than a month ago, with three analysts suggesting a “Strong Buy.”
On Nov. 11, RBC Capital analyst Shelby Tucker maintained a “Hold” rating on ED with a price target of $101, implying a potential upside of 4.7% from current levels.
The mean price target of $103 represents a 6.8% premium to ED’s current price levels. The Street-high price target of $116 suggests an upside potential of 20.3%.
