Consolidated Edison's Underperformance in the Utilities Sector

Consolidated Edison (ED) stock has declined 14.9% from its all-time high, but outperformed the Dow Jones Industrial Average's 7.6% gains over the past three months. Despite a recent downturn, ED has gained 9.5% YTD and declined 5.9% over the past 52 weeks, outpacing the Dow's 8.4% uptick in 2025. The company's Q2 results showed solid revenue growth and a 21.8% year-over-year increase in net income. ED has a "Hold" consensus rating and a mean price target of $105.31, suggesting a 7.8% upside potential from current price levels.

Consolidated Edison (ED) stock has experienced a notable decline over the past three months, falling 14.9% from its all-time high. Despite this downturn, ED has outperformed the Dow Jones Industrial Average (DJIA) by 7.6% during the same period. The stock has shown resilience, gaining 9.5% year-to-date (YTD) and declining 5.9% over the past 52 weeks, compared to the DJIA's 8.4% uptick in 2025. The company's Q2 results highlighted solid revenue growth and a 21.8% year-over-year increase in net income.

Analysts maintain a "Hold" consensus rating for ED, with a mean price target of $105.31, suggesting a 7.8% upside potential from current price levels. However, the stock has been underperforming compared to some of its competitors. For instance, on Monday, September 12, 2025, ED slipped 1.43% to $96.65, while Duke Energy Corp. (DUK) fell 0.36% to $120.17, Exelon Corp. (EXC) fell 0.94% to $43.02, and Sempra SRE fell 2.10% to $79.41 Consolidated Edison Inc. stock underperforms Monday when compared to competitors^[1].

Technical analysis indicates a weak trend for ED, with an internal diagnostic score of 3.48. This score signals a declining trend and advises investors to avoid the stock. Analyst views are mixed, with one Buy, one Neutral, and two Sell ratings, reflecting a neutral to bearish outlook. The company's fundamentals show modest strength, with a low return on equity (ROE) of 4.37% and poor margin metrics despite some positive growth indicators Stock Analysis | Consolidated Edison Outlook - Technical Weakness and Mixed Analyst Signals^[2].

Fundamentally, ED's stock appears to be undervalued, with a price-to-earnings ratio of 124.31 and a gross profit margin of 53.15%. However, the company's cash flows and asset management metrics are concerning, with key ratios such as ROE and revenue-to-market value (Revenue-MV) indicating weak returns. Additionally, large investor outflows, with an inflow ratio of 0.488, highlight market uncertainty Stock Analysis | Consolidated Edison Outlook - Technical Weakness and Mixed Analyst Signals^[2].

Technical signals suggest a wait-and-see approach for ED, with oversold conditions in both WR and RSI indicators. The market's volatility and unclear direction reinforce this cautious stance. Despite these challenges, ED's solid Q2 results and potential upside suggest investors may want to consider a wait-and-see approach or look for a potential pull-back before making new commitments.