ED Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Consolidated Edison is not a strong buy right now for a beginner long-term investor with $50,000-$100,000 and no patience for waiting on a better entry. The stock looks fairly valued to slightly expensive near current levels, with mixed technical momentum and only modest upside implied by analyst targets. The best read is Hold: the business is stable, but this is not an attractive immediate entry.
ED closed at 105.99, just below the pivot at 108.93 and near first support at 106.214, with deeper support at 104.536. MACD histogram is -0.293 and worsening, which points to weakening short-term momentum. RSI_6 at 26.728 is oversold-leaning, but not enough by itself to confirm a strong rebound. Moving averages are converging, suggesting the stock is not in a clean uptrend. The recent pattern-based forecast also points to mild near-term weakness (-0.61% next day and -3.11% next month), so the technical setup is neutral-to-bearish rather than a clear buy.
The company reaffirmed full-year 2026 adjusted EPS guidance of $6.00 to $6.20, which supports visibility for a long-term utility investor. Revenue growth in the latest quarter was helped by infrastructure investment and rate-plan benefits. Hedge funds are also buying, with buying activity up 108.15% over the last quarter. Utilities remain relatively supported in the broader market, and analysts continue to lift price targets.
Adjusted Q1 earnings were slightly down year over year at $2.18 per share versus $2.26, partly due to transaction costs. The company also raised $357.5 million via a forward sale of 7 million shares, which adds dilution/financing overhang. Technical momentum is weak, and the stock trend model suggests short-term downside. Analyst ratings are mixed, with several Underperform/Underweight calls still in place despite higher targets, limiting conviction. No meaningful insider buying was reported.
Latest quarter: Q1 2026. Reported net income increased to $924 million from $791 million YoY, and EPS rose to $2.55 from $2.26. Adjusted EPS was $2.18 versus $2.26 a year earlier, down slightly because of transaction costs. For the prior quarter (2025/Q4), revenue rose 8.86% YoY to $3.994 billion, but net income fell 4.19% and EPS fell 7.87%, while gross margin also slipped. Overall, growth is steady but not accelerating, which is typical for a regulated utility.
Analysts have generally raised price targets recently, but the rating trend is mixed to negative. BofA raised its target to $107 but kept Underperform; Morgan Stanley lowered target to $105 but kept Overweight; Wells Fargo raised target to $98 and kept Equal Weight; KeyBanc raised target to $97 and kept Underweight; JPMorgan lifted target to $113 but kept Underweight; Evercore ISI raised target to $117 and kept In Line; TD Cowen raised target to $112 and kept Hold. Wall Street sees stable fundamentals and regulated-growth support, but the bearish/neutral ratings dominate, so the pros view is limited upside and the cons view is valuation, financing needs, and only modest earnings growth.
