Consolidated Edison Outlook - A Bearish Technical Outlook Amid Mixed Analyst Ratings

1. Market Snapshot

Headline Takeaway: Consolidated Edison (ED) is trading in a bearish technical climate with weak momentum, but strong fundamentals provide some support.

The current price trend for ED is a recent decline of -2.33%, which aligns with the bearish expectations of analysts. However, the fundamental score of 6.47 and fund-flow score of 7.84 suggest that the long-term fundamentals remain healthy, though technical indicators remain cautious.

2. News Highlights

Recent headlines include Tesla's Optimus humanoid robot being highlighted by Nvidia CEO as potentially sparking a multi-trillion-dollar industry and HH Chemical launching a new bio-based materials brand. These stories do not directly impact ED, but they reflect broader market enthusiasm for innovation and long-term growth areas.

• May 31, 2025 - Virtus Investment Partners reported an increase in assets under management to $167.6 billion. This could signal investor confidence in broader financial sectors, including utilities like ED.
• May 30, 2025 - The Allstate Corporation reported catastrophe losses for May. While unrelated to ED, this highlights market exposure to external economic shocks that could indirectly affect utility stocks.
• May 31, 2025 - Harbinger Health showcased a multi-cancer early detection test at ASCO 2025. Although not directly relevant to ED, it underscores continued market focus on health innovation and long-term trends in healthcare.

3. Analyst Views & Fundamentals

Analyst ratings for ED show a mixed outlook. The simple average rating is 2.75, while the weighted rating (based on historical performance) is 2.21. This discrepancy highlights the lack of consensus among analysts, as reflected in the recent rating distribution: 1 Buy, 1 Neutral, and 2 Sell.

Despite the mixed ratings, fundamentals remain robust. Key factors include:

• Revenue-MV: 3.00 (internal diagnostic score: 3.00)
• Net profit attributable to parent company shareholders / Net profit (%): 100.00% (score: 100.00)
• Long-term debt to working capital ratio (%): 32.79% (score: 32.79)
• Cost of sales ratio (%): 46.85% (score: 46.85)
• Asset-MV: 1.23 (score: 1.23)

These figures indicate that while ED has a solid revenue and profit margin, its debt management is a key area to monitor.

4. Money-Flow Trends

Money-flow patterns suggest a cautious stance. The overall inflow ratio is 49.22%, with all categories (Small, Medium, Large, Extra-large) trending negative. Institutional (block) inflows also trended negative at 49.17%. These figures suggest that big money is taking a wait-and-see approach, while retail investors are also not showing a strong bullish sentiment.

5. Key Technical Signals

Technically, ED is signaling caution with a technical score of 4.79 and a weak technology trend. Key indicators include:

• Williams %R Oversold: Internal diagnostic score of 1.65 - indicating a weak bullish bias and historically poor returns.
• RSI Oversold: Score of 6.05 - showing some moderate potential for a price rebound.
• Dividend Payable Date: Score of 6.68 - suggesting a potential positive bias around the dividend event.

Recent chart patterns indicate frequent appearances of WR Oversold and RSI Oversold over the last 5 days, particularly on September 2, 8, and 9. However, the WR Oversold remains a dominant bearish signal, indicating a volatile, uncertain trend.

Insight: The technical landscape is mixed, but bearish signals are more dominant. The market seems to be waiting for a clearer direction, and volatility is expected to persist.

6. Conclusion

With a fundamental score of 6.47, technical score of 4.79, and fund-flow score of 7.84, Consolidated Edison presents a mixed picture. While the fundamentals remain strong, the technicals and analyst ratings lean toward caution. Investors should consider waiting for a clearer breakout signal before committing new capital.

Actionable Takeaway: Monitor for a strong break above the 5-day volatility range and keep an eye on dividend-related price movement. For now, it might be wise to wait for a pull-back before entering long positions.