Stock of the Day

January 25, 2021

Consolidated Edison (ED)

$109.87
-$1.18 (-1.1%)
Market Cap: $40.49B

About Consolidated Edison

Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.7 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County; and steam to approximately 1,530 customers in parts of Manhattan. The company also supplies electricity to approximately 0.3 million customers in southeastern New York and northern New Jersey; and gas to approximately 0.2 million customers in southeastern New York. In addition, it operates 545 circuit miles of transmission lines; 15 transmission substations; 63 distribution substations; 90,051 in-service line transformers; 3,788 pole miles of overhead distribution lines; and 2,314 miles of underground distribution lines, as well as 4,363 miles of mains and 380,870 service lines for natural gas distribution. Further, the company invests in electric and gas transmission projects. It primarily sells electricity to industrial, commercial, residential, and government customers. Consolidated Edison, Inc. was founded in 1823 and is based in New York, New York.

Consolidated Edison Bull Case

Here are some ways that investors could benefit from investing in Consolidated Edison, Inc.:

  • The current stock price is around $112.40, which is within the range of its twelve-month high and low, indicating stability in its market performance.
  • Consolidated Edison, Inc. has a consistent dividend payout, with an annualized dividend of $3.55 and a yield of 3.2%, providing a reliable income stream for investors.
  • The company has a solid market capitalization of approximately $41.42 billion, reflecting its strong position in the energy sector.
  • Recent upgrades from analysts, including a price target of $116.00, suggest positive sentiment and potential for stock appreciation.
  • With a relatively low beta of 0.27, the stock is less volatile compared to the market, making it a safer investment option during uncertain economic times.

Consolidated Edison Bear Case

Investors should be bearish about investing in Consolidated Edison, Inc. for these reasons:

  • The company has received several "underweight" ratings from analysts, indicating that some experts believe the stock may not perform well compared to the market.
  • With a debt-to-equity ratio of 1.00, Consolidated Edison, Inc. has a significant amount of debt relative to its equity, which could pose risks in times of rising interest rates.
  • The consensus rating for the stock is "Reduce," suggesting that analysts are cautious about its future performance.
  • Despite a stable dividend, the company's dividend payout ratio is at 59.76%, which may limit its ability to reinvest in growth opportunities.
  • Market fluctuations and regulatory changes in the energy sector could impact the company's profitability and stock performance.
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