Consolidated Edison (ED) Gains But Lags Market: What You Should Know
In the latest trading session, Consolidated Edison (ED) closed at $93.40, marking a +0.6% move from the previous day. The stock lagged the S&P 500's daily gain of 1.92%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Coming into today, shares of the utility had gained 5.9% in the past month. In that same time, the Utilities sector lost 1.24%, while the S&P 500 gained 1.54%.
Wall Street will be looking for positivity from Consolidated Edison as it approaches its next earnings report date. This is expected to be August 4, 2022. In that report, analysts expect Consolidated Edison to post earnings of $0.55 per share. This would mark year-over-year growth of 3.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.13 billion, up 5.4% from the year-ago period.
ED's full-year Zacks Consensus Estimates are calling for earnings of $4.49 per share and revenue of $14.3 billion. These results would represent year-over-year changes of +2.28% and +4.57%, respectively.
Any recent changes to analyst estimates for Consolidated Edison should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Consolidated Edison currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Consolidated Edison is holding a Forward P/E ratio of 20.7. This valuation marks a premium compared to its industry's average Forward P/E of 18.71.
Also, we should mention that ED has a PEG ratio of 10.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ED's industry had an average PEG ratio of 3.18 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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