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

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In the latest trading session, Consolidated Edison (ED - Free Report) closed at $94.12, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.01%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.1%.

Prior to today's trading, shares of the utility had lost 6.98% over the past month. This has lagged the Utilities sector's loss of 6.68% and the S&P 500's loss of 6.08% in that time.

Investors will be hoping for strength from Consolidated Edison as it approaches 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.

Investors should also note any recent changes to analyst estimates for Consolidated Edison. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 20.86. For comparison, its industry has an average Forward P/E of 18.88, which means Consolidated Edison is trading at a premium to the group.

Also, we should mention that ED has a PEG ratio of 10.43. 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 3.22 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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