ED Stock Analysis — Consolidated Edison
Sector: Utilities
AI Verdict
ED trades at 17.3x next year's earnings with 4.9% expected EPS growth—fair for a regulated utility, but you're paying up for safety rather than meaningful growth.
Competitive Moat
Consolidated Edison operates regulated electric, gas, and steam utilities in the New York metropolitan area, protected by high barriers to entry due to infrastructure costs and regulatory approval requirements. Its monopoly on critical urban energy delivery creates a stable, predictable cash flow moat.
Summary
ED stands out for its defensive profile and a forward P/E of 17.3x, which is slightly below the sector median for utilities.
Where It Stands
With a 1-year return of 3.35%, an RSI of 42.3 (cooling), and a forward P/E of 17.3x versus the utility sector median of 18x, ED is trading at a small discount to peers.
Key Metrics
- RSI: 42.3 — Neutral
- Trailing P/E: 18.2x
- Forward P/E: 17.3x
- PEG Ratio: 3.72
- Earnings Growth: +0.0%
- Revenue Growth: +0.1%
- Market Cap: $39.8B
- Dividend Yield: 0.03%
- 1-Year Return: 3.35%
- 52-Week High: $116.23
- 52-Week Low: $94.96
Analyst Consensus
2 Buy · 13 Hold · 12 Sell (27 analysts)
Bull Case
The forward P/E of 17.3x is modest for a utility with a regulated monopoly, and the 4.9% expected EPS growth supports steady compounding.
Bear Case
A PEG ratio of 3.72 means investors are paying a premium the earnings growth doesn't justify, and if the P/E falls to the sector median of 18x, there’s little room for multiple expansion upside.
Catalyst to Watch
Regulatory rate case outcomes or changes to allowed returns on equity could directly impact forward earnings and justify a rerating.