ED Stock Analysis — Consolidated Edison
Sector: Utilities
AI Verdict
ED trades at 17.3x next year's earnings—about fair for a utility with an 8.1% growth outlook and regulatory moat, but the RSI of 67.9 means you're paying up after a strong run.
Competitive Moat
Consolidated Edison operates regulated electric, gas, and steam utilities in New York City and surrounding areas, giving it a geographic monopoly protected by regulatory barriers. Its defensibility comes from exclusive service territories and guaranteed returns on infrastructure investments set by state regulators.
Summary
ED's 17.3x forward P/E is drawing attention as utilities face rising rate expectations and a modest 8.1% earnings growth outlook.
Where It Stands
ED has returned 11.04% over the past year, trades at 17.3x next year's earnings versus the utility sector median of 18x, and its RSI of 67.9 signals elevated pullback risk.
Key Metrics
- RSI: 67.9 — Near Overbought
- Trailing P/E: 18.7x
- Forward P/E: 17.3x
- PEG Ratio: 2.02
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $40.9B
- Dividend Yield: 0.03%
- 1-Year Return: 11.04%
- 52-Week High: $116.23
- 52-Week Low: $94.96
Analyst Consensus
3 Buy · 11 Hold · 12 Sell (26 analysts)
Bull Case
With a forward P/E of 17.3x and 8.1% expected EPS growth, ED is priced slightly below the sector median while offering stable, regulated earnings.
Bear Case
An RSI of 67.9 suggests overbought conditions, so a pullback to a neutral RSI could erase several percentage points of recent gains.
Catalyst to Watch
Watch for state regulatory decisions on allowed returns or rate hikes, as these directly impact earnings forecasts and valuation.