We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Consolidated Edison (ED) to Your Portfolio Now
Read MoreHide Full Article
Consolidated Edison, Inc.’s (ED - Free Report) strategic investments are likely to strengthen its infrastructure and provide better customer service. The enhancements in the infrastructure will help withstand severe weather conditions and ensure an uninterrupted supply of electricity.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections
The Zacks Consensus Estimate for ED’s 2024 and 2025 earnings indicates year-over-year growth of 5.13% and 5.15%, respectively.
The company’s long-term (three to five years) earnings growth is pinned at 7.39%.
Surprise History & Dividend Details
Consolidated Edison has a positive surprise history. Its trailing four-quarter earnings surprise is 5.9%, on average.
The company has increased dividends for 50 consecutive years and its target payout is in the range of 55-65%. The current dividend yield is 3.69%, better than the Zacks S&P 500 composite’s average yield of 1.6%.
Return on Asset
ED’s current return on assets (ROA) is pinned at 2.9%, more than the industry average of 2.6%. ROA, a profitable measure, reflects how effectively a company is utilizing its assets in its operations to generate income.
Leverage
Consolidated Edison’s debt to capital at the end of the first quarter of 2024 was 50.36%, which compared favorably with its industry average of 54.68%. The reduced leverage signifies that the interest costs are lower and the company uses a smaller percentage of borrowed capital than its peers to run its operation.
Investments
Consolidated Edison continues to follow a strategic investment plan for developing its infrastructure and aims to invest $28.05 billion during the 2024-2028 period. In the next 10 years, it plans to invest $68 billion and promote the efficient operation of 1,000 MW of energy storage.
Price Performance
Shares of ED have gained 0.9% in the past month against the industry’s 1.5% decline.
The Zacks Consensus Estimate for FirstEnergy’s 2024 and 2025 earnings has increased 0.75% and 0.35%, respectively, in the last 60 days. The company’s long-term earnings growth is pinned at 5.87%.
CenterPoint Energy has delivered an average earnings surprise of 3.13% in the last four quarters. The company’s long-term earnings growth is pinned at 7%.
Fortis has delivered an average earnings surprise of 4.17% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 and 2025 indicates year-over-year growth of 2.19% and 2.66%, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reasons to Add Consolidated Edison (ED) to Your Portfolio Now
Consolidated Edison, Inc.’s (ED - Free Report) strategic investments are likely to strengthen its infrastructure and provide better customer service. The enhancements in the infrastructure will help withstand severe weather conditions and ensure an uninterrupted supply of electricity.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections
The Zacks Consensus Estimate for ED’s 2024 and 2025 earnings indicates year-over-year growth of 5.13% and 5.15%, respectively.
The company’s long-term (three to five years) earnings growth is pinned at 7.39%.
Surprise History & Dividend Details
Consolidated Edison has a positive surprise history. Its trailing four-quarter earnings surprise is 5.9%, on average.
The company has increased dividends for 50 consecutive years and its target payout is in the range of 55-65%. The current dividend yield is 3.69%, better than the Zacks S&P 500 composite’s average yield of 1.6%.
Return on Asset
ED’s current return on assets (ROA) is pinned at 2.9%, more than the industry average of 2.6%. ROA, a profitable measure, reflects how effectively a company is utilizing its assets in its operations to generate income.
Leverage
Consolidated Edison’s debt to capital at the end of the first quarter of 2024 was 50.36%, which compared favorably with its industry average of 54.68%. The reduced leverage signifies that the interest costs are lower and the company uses a smaller percentage of borrowed capital than its peers to run its operation.
Investments
Consolidated Edison continues to follow a strategic investment plan for developing its infrastructure and aims to invest $28.05 billion during the 2024-2028 period. In the next 10 years, it plans to invest $68 billion and promote the efficient operation of 1,000 MW of energy storage.
Price Performance
Shares of ED have gained 0.9% in the past month against the industry’s 1.5% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the industry are FirstEnergy Corporation (FE - Free Report) , CenterPoint Energy (CNP - Free Report) , and Fortis Inc. (FTS - Free Report) . Each of these stocks currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The Zacks Consensus Estimate for FirstEnergy’s 2024 and 2025 earnings has increased 0.75% and 0.35%, respectively, in the last 60 days. The company’s long-term earnings growth is pinned at 5.87%.
CenterPoint Energy has delivered an average earnings surprise of 3.13% in the last four quarters. The company’s long-term earnings growth is pinned at 7%.
Fortis has delivered an average earnings surprise of 4.17% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 and 2025 indicates year-over-year growth of 2.19% and 2.66%, respectively.