Consolidated Edison’s ED systematic capital investment plan and focus on reducing carbon footprint through renewable assets bode well.
Let’s focus on the factors that make this company an appropriate investment option at the moment.
Zacks Rank & Long-Term Price Movement
Consolidated Edison currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past five years, the company’s shares have rallied 27.1% compared with the industry’s rise of 13.5%.
The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $4.53 per share on revenues of $13.11 billion. The bottom-line figure suggests 5% year-over-year increase. The same for the top line calls for a 3.13% rise on a year-on-year basis. The company’s long-term (3 to 5 years) earnings growth rate is pegged at 2%.
Debt/Capital& Dividend Yield
The company’s current debt to capital ratio is pegged at 50.30% compared with the industry’s 51.70%.
Currently, the company has a dividend yield of 3.73% compared with the Zacks S&P 500 composite’s 1.76% and the industry’s 2.75%.
The company continues to follow a systematic capital investment plan for infrastructure development and maintain the reliability of its electric, gas and steam delivery systems. Notably, Consolidated Edison spent $5.25 billion during 2018. Going ahead, the company plans to spend around $12.1 billion for the 2019-2021 time frame.
Other Key Picks
A few top-ranked stocks from the same industry are The AES Corporation AES, Entergy Corporation ETR and Dominion Energy Inc D. The AES Corporation currently sports a Zacks Rank #1, while the other two stocks carry a Zack Rank of 2.
The AES Corporation, Entergy and Dominion Energy have trailing four-quarter positive earnings surprise of 4.68%, 4.79% and 0.10%, on average, respectively.
The long-term earnings growth rate for The AES Corporation, Entergy and Dominion Energy is pegged at 9.11%, 7% and 4.80%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research