Consolidated Edison, Inc. (ED) $111.12
Consolidated Edison is currently wrestling with overhead supply at $111, leaving investors to question if this utility giant has the momentum to break higher or if a pullback is imminent.
52-wk High $116.23
📌 Investment Snapshot
- Trading at $111.12, reflecting a 18.7x P/E multiple.
- Q1 2026 revenue reached $5.09B with $2.54 EPS.
- Regulatory tailwinds remain steady, yet upside is capped by analyst consensus.
- Mean target of $110.50 implies a slight downside from current levels.
ED is currently trading above its 50-day and 200-day moving averages, signaling a constructive trend. However, the stock is approaching a bearish FVG zone and lacks the oversold conditions required for a high-conviction entry.
| 📍 Entry Zone | $106.00 or below | 🛑 Stop-Loss | $103.50 |
| 📋 Adjust If | A clean breakout above $112.00 with increased volume would invalidate the bearish thesis. | ||
The Investment Case — Why Now?
Over the past 90 days, Consolidated Edison has demonstrated resilience, benefiting from a flight-to-safety trade amid broader market volatility. The company continues to execute on its capital expenditure program, focusing on grid modernization and clean energy infrastructure, which supports long-term rate base growth.
However, the current valuation leaves little margin for error. With the stock trading near its 52-week highs and the consensus target sitting below the current price, the risk-to-reward profile for new capital is unfavorable. Are you willing to chase a utility stock at these levels, or would you prefer waiting for a deeper retracement to the $106 support level?
🤔 Are you willing to chase a utility stock at these levels, or would you prefer waiting for a deeper retracement to the $106 support level?
🏢 Company Overview
| Detail | Value |
|---|---|
| Sector | Utilities |
| Industry | Regulated Electric |
| Dividend Yield | 3.13% |
📈 Price Action & Technicals
Golden Cross
Inside VA
Buy-side Sweep at $110.35 on 2026-07-09
ED is currently trading above both the 50-day SMA ($107.91) and 200-day SMA ($104.13), confirming a healthy uptrend. The stock is currently testing the Point of Control (POC) at $110.41, a critical level that has acted as both support and resistance.
The RSI of 63.5 signals strong momentum but warns that the stock is nearing overbought conditions. While the MACD shows a golden cross, the high ADX of 48.5 suggests the trend is stretched, increasing the probability of a consolidation phase.
The price is currently positioned inside the Value Area ($95.84–$112.62), indicating that the market is currently balancing value. The recent buy-side liquidity sweep at $110.35 suggests institutional interest, yet the bearish FVG at $111.43–$111.81 acts as a magnetic ceiling.
The volume ratio at 0.55x the 20-day average reveals a lack of conviction behind the recent price action. This low-volume drift often precedes a reversal, especially when coupled with the proximity to the bearish FVG zone.
Our Technical Confluence Score of 100/100 is driven by the alignment of the VWAP, VP, and FVG levels. This confluence confirms that while the trend is bullish, the current price point is an area of high institutional distribution rather than accumulation.
🤔 Does the low volume combined with the bearish FVG zone signal a temporary top, or is this just a pause before the next leg up?
⚖ Peer P/E Comparison
| Ticker | Company | P/E (TTM) |
|---|---|---|
| ED | Consolidated Edison | 18.7x |
| SO | Southern Company | 20.1x |
| DUK | Duke Energy | 19.5x |
| AEP | American Electric Power | 18.2x |
💰 Earnings Deep Dive
| Period | Revenue | EPS | YoY |
|---|---|---|---|
| Q1 2026 | $5.09B | $2.54 | +41% |
| Q4 2025 | $4.00B | $0.81 | N/A |
| Q3 2025 | $4.53B | $1.90 | N/A |
| Q2 2025 | $3.60B | $0.68 | N/A |
Free cash flow for the latest quarter was negative at -$1.0B, reflecting heavy investment in infrastructure projects.
Earnings have been volatile, but the Q1 2026 beat provides a solid foundation. The challenge remains converting this revenue growth into consistent free cash flow.
🚀 Growth Drivers — What Moves the Stock
- Grid Modernization 🟡 Priced In — Ongoing investment in the electrical grid is expected to drive rate base growth over the next five years.
- Clean Energy Transition 🟢 Upside Surprise — Regulatory support for renewable energy projects provides a long-term tailwind for earnings stability.
🏦 Smart Money & Institutional Positioning
13F Holdings
| Institution | Shares (K) |
|---|---|
| Blackrock Inc. | 39,455 |
| State Street Corporation | 24,879 |
Holdings reflect most recent 13F (45-day lag).
Insider Transactions
| Name | Title | Date | Type | Shares |
|---|---|---|---|---|
| FARHADIAN WEINSTEIN TALI | Director | 2026-07-01 | Purchase | 1277 |
Short Interest
| Short % Float | Days to Cover |
|---|---|
| 5.0% | 5.8 |
⚠ Key Risk Factors
~$2B impact
~$1B impact
🤔 Given the sensitivity to interest rates, how much of a premium are you willing to pay for ED’s stability in the current macro environment?
🎯 Guidance & Wall Street View
| High Target | Mean Target | Low Target | Analysts | Consensus |
|---|---|---|---|---|
| $130.00 | $110.50 | $97.00 | 16 | Hold |
| Firm | Rating | Target | Date | Action |
|---|---|---|---|---|
| Mizuho | Neutral | $110.00 | 2026-06-02 | Downgrade |
| Barclays | Underweight | $105.00 | 2026-05-11 | Maintained |
The consensus is firmly in ‘Hold’ territory, reflecting the lack of clear upside from current price levels.
📊 Bull vs Bear — Probability-Weighted Scenarios
🐂 Bull Case
- Strong regulatory support for infrastructure spend.
- Consistent dividend growth history.
📊 Base Case
The stock continues to trade sideways as it balances growth investments against interest rate pressures.
🐻 Bear Case
- Valuation stretched relative to historical averages.
- Negative free cash flow in recent quarters.
🎯 Investor Action Plan — By Profile
Avoid entering at $111. Wait for a pullback to the $106–$107 range to capture a better risk-to-reward setup.
Maintain existing positions, but avoid adding new capital until the stock clears the $112 resistance level with conviction.
The current valuation is not attractive for long-term entry. Patiently wait for a market correction to improve the yield and entry price.
❓ Investor FAQ — People Also Ask
Q: Is ED a good dividend stock right now?
With a 3.13% yield, it is reliable, but the capital appreciation potential is currently limited by the stock’s proximity to its 52-week high.
Q: What is the biggest risk to ED?
The primary risk is rising interest rates, which increase borrowing costs and make the dividend yield less attractive compared to risk-free treasury bonds.
Q: Should I sell my ED shares?
If you are a long-term holder, there is no immediate reason to sell, but new investors should wait for a better entry point.
📖 New to these terms? P/E Ratio · Free Cash Flow · Insider Signals · Stop-Loss · RSI
📊 How has the stock moved since this analysis?
📋 Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. All investments carry risk.
All active positions and their real-time performance are tracked on our Investment Log.
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