Though the top line for Consolidated Edison missed the Zacks Consensus Estimate, the bottom line succeeded in beating the mark. The company is focused on energy efficiency initiatives and its aggressive oil-to-gas conversion program that will lower costs while improving air quality. Also, the company continues to invest heavily in infrastructure improvement.
However, we remain concerned about lower demand for electricity, earnings dilutive issuances and regulatory risks. Consolidated Edison currently has a Zacks Rank #4 (Sell). In the near term, we would advise investors to accumulate its Zacks Rank #1 (Strong Buy) peer Otter Tail Corporation (OTTR - Snapshot Report).