Consolidated Edison (ED) Gains As Market Dips: What You Should Know

Consolidated Edison (ED) closed at $88.90 in the latest trading session, marking a +0.78% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the utility had lost 12.13% over the past month. This has lagged the Utilities sector's loss of 7.78% and the S&P 500's loss of 3.32% in that time.

Investors will be hoping for strength from Consolidated Edison as it approaches its next earnings release. The company is expected to report EPS of $0.55, up 3.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.13 billion, up 5.4% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $14.3 billion, which would represent changes of +2.28% and +4.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Consolidated Edison. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually 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.

Looking at its valuation, Consolidated Edison is holding a Forward P/E ratio of 19.67. For comparison, its industry has an average Forward P/E of 17.7, which means Consolidated Edison is trading at a premium to the group.

It is also worth noting that ED currently has a PEG ratio of 9.83. 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. The Utility - Electric Power industry currently had an average PEG ratio of 2.99 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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