Consolidated Edison (ED) Gains As Market Dips: What You Should Know
In the latest trading session, Consolidated Edison (ED) closed at $95.15, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 2.91% loss on the day. Meanwhile, the Dow lost 2.73%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Prior to today's trading, shares of the utility had gained 0.17% over the past month. This has lagged the Utilities sector's gain of 0.91% and the S&P 500's gain of 0.84% in that time.
Consolidated Edison will be looking to display strength as it nears its next earnings release. On that day, Consolidated Edison is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 3.77%. Meanwhile, our latest consensus estimate is calling for revenue of $3.13 billion, up 5.4% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Consolidated Edison. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Consolidated Edison has a Forward P/E ratio of 21.07 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.27.
Meanwhile, ED's PEG ratio is currently 10.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power industry currently had an average PEG ratio of 3.32 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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