Consolidated Edison, Inc. (ED), headquartered in New York, engages in the regulated electric, gas, and steam delivery businesses. With a market cap of $35.8 billion, the company is committed to providing safe and reliable energy services to millions of customers across its service territories.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ED perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regulated electric utilities industry.
ED’s strategic investing in utility construction and divesting its clean energy business to RWE demonstrate a forward-thinking approach to sustainable growth. By streamlining operations and focusing on core utility services, the company enhances long-term reliability and efficiency. The consistent revenue growth underscores ED's success in expanding its customer base and service offerings, solidifying its market position, and paving the way for future investments.
ED has fallen 3.7% from its 52-week high of $105.99, achieved on Aug. 2. Over the past three months, ED stock has gained 13%, outperforming the utilities select sector SPDR Fund (XLU) 12.8% gains during the same time frame.
In the longer term, shares of ED rose 12.3% on a YTD basis and climbed 12% over the past 52 weeks, underperforming XLU’s YTD gains of 23.2% and 21.9% returns over the last year.
However, ED has been trading above its 50-day and 200-day moving averages since mid-July, indicating a bullish trend.
On Aug. 1, ED reported its Q2 earnings results, and its shares closed up more than 1% in the following trading session. Its adjusted EPS of $0.59 surpassed Wall Street expectations of $0.55. The company’s revenue was $3.2 billion, beating forecasts of $3.1 billion. ED expects full-year adjusted EPS to be between $5.20 and $5.40.
In the competitive arena of regulated electric utilities, PG&E Corporation (PCG) has taken the lead over ED, with 12.6% returns over the past 52 weeks. However, PCG shares lagged behind the stock in 2024, with 8.7% gains on a YTD basis.
Wall Street analysts are cautious about ED’s prospects. The stock has a consensus “Hold” rating from the 16 analysts covering it. While ED currently trades above its mean price target of $96.43, the Street-high price target of $109 suggests an upside potential of 6.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
