Consolidated Edison, Inc. (ED), with a market cap of $34.94 billion, is a prominent player in the utility sector. Headquartered in New York, Consolidated Edison is committed to providing safe and reliable energy services to millions of customers across its service territories. As one of the largest investor-owned energy companies in the U.S., Consolidated Edison delivers electric, gas, and steam services, focusing on sustainability and innovation to meet the evolving energy needs of its customers.
Consolidated Edison has significantly underperformed the broader market over the last year. The stock has gained 11.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.6%. Also, in 2024, the stock is up 11.1% compared to SPX's 12% gains on a YTD basis.
Narrowing the focus, ED underperformed the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained 16.2% YTD, easily outshining ED’s returns during the same period.
On Aug. 1, Consolidated Edison reported its Q2 results. The stock rose over 5% after the earnings report. The company reported revenue and EPS of $3.22 billion and $0.59, beating the analyst's expectations of $3.08 billion and $0.55. ED expects full-year earnings between $5.20 to $5.40 per share.
For the current fiscal year, ending in December, analysts expect ED’s EPS to grow 4.7% to $5.31 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering ED stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, nine “Holds,” and five “Strong Sells.”
This configuration is slightly more bullish than three months ago, with one suggesting a “Strong Buy.”
On Aug. 6, Scotiabank analyst Andrew Weisel maintained a “Sell” rating on Consolidated Edison, with a price target of $85.
The mean price target is $93.64, which indicates that the stock trades at a premium. The Street-high price target of $109 suggests an upside potential of 7.9%.
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.
