With a market cap of $37.3 billion, Consolidated Edison, Inc. (ED) engages in the regulated electric, gas, and steam delivery businesses in the United States. Founded in 1823, the New York-based company offers electric, gas, and steam services to millions of people in New York City, Manhattan, the Bronx, parts of Queens, and Westchester County.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks”, and ED fits this criterion perfectly. The company benefits from a large portfolio of electric and gas transmission lines and a large customer base including industrial, commercial, residential, and government customers.
ED stock has fallen marginally from its 52-week high of $108.43, recorded recently on March 17. ED stock has surged 21.3% over the past three months, outpacing the broader S&P 500 Index ($SPX), which declined 4.4% during the same period.
ED shares show strong long-term potential, Over the past six months, shares of ED surged 4.3%, compared to $SPX’s marginal decline. Moreover, ED has surged 21.2% over the past 52 weeks, outperforming SPX's 9% return.
ED has been trading above its 200-day moving average since February-end and over its 50-day moving average since January-end.
ED’s stock surged marginally following its Q4 earnings release on Feb. 20. The company reported a 6.5% increase in its total operating revenues, which amounted to $3.7 billion. Moreover, its EPS came in at $0.98, surpassing the Wall Street estimates by 1%.
The company expects a growth of demand for electrification in 2025 driven by an increase in new construction downstate combined with policymaker’s requirements for clean heat in new commercial and residential buildings.
Its rival, Xcel Energy Inc. (XEL), has surpassed ED, with its shares surging 9.2% over the past six months and 35.1% over the past 52 weeks.
ED has a consensus rating of “Hold” from the 18 analysts covering it, and it is currently trading above its mean price target of $101.62.
