Stock Analysis | Consolidated Edison Outlook - A Cautious Technical Outlook Amid Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Consolidated Edison (ED) shows a weak technical outlook, with mixed analyst ratings and moderate fundamental performance.

News Highlights

Recent news affecting the utility sector includes:

• Key Colony Management LLC acquired a new stake in Edison International (EIX), a competitor in the utilities space, indicating increased institutional interest in the sector. While not directly related to ED, it shows utilities are attracting attention.
• DTE Energy faces backlash in Michigan over a proposed rate increase, highlighting the sensitivity of the utility sector to regulatory and public sentiment—this could indirectly influence ED if similar concerns arise.
• HH Chemical launched a bio-based material brand, a green innovation that may align with broader trends affecting utilities and energy providers like ED in the long term.

Analyst Views & Fundamentals

Analyst sentiment is mixed, with a simple average rating of 2.75 and a performance-weighted rating of 2.21. These figures suggest a cautious stance, and the ratings are not in full alignment with the current price trend (a recent decline of -2.58%).

The fundamental model score for ED is 5.69, indicating moderate long-term potential. Key financial metrics include:

• EV/EBIT: 39.22 - a valuation metric that suggests the company is reasonably priced relative to its earnings.
• Asset-MV: 1.23 - indicating a moderate leverage position.
• Revenue-MV: 0.34 - a measure of revenue relative to market value, suggesting average performance.
• Cash-UP: 0.93 - a positive indicator of liquidity strength.
• Profit-MV: 0.40 - indicating modest profitability relative to market valuation.
• Equity multiplier: 3.01 - a sign of moderate financial leverage.

These fundamentals support a cautiously optimistic outlook, but mixed analyst sentiment and a recent price decline suggest caution.

Money-Flow Trends

Money-flow trends for ED show a negative overall trend across all categories:

• Overall inflow ratio: 47.26% – below 50%, indicating more outflows than inflows.
• Block inflow ratio: 46.99% – large investors are also showing bearish tendencies.
• Both large and extra-large fund flows are negative, with inflow ratios at 48.70% and 46.12%, respectively.

These trends suggest that big-money investors are less optimistic about ED's near-term prospects. Retail and small investor sentiment is also bearish, with small inflow ratio at 48.96%, reinforcing the negative momentum.

Key Technical Signals

Technically, ED has a weak signal with an internal diagnostic score of 4.42, advising caution. Here’s a breakdown of key indicators:

• WR Oversold: Score of 1.61 – historically signals weak returns and a 42.59% win rate, suggesting it’s not a strong bullish indicator.
• Marubozu White: Score of 1.00 – a bearish signal with a poor historical win rate of 28.57% and average return of -0.85%.
• Inverted Hammer: Score of 7.53 – a positive reversal pattern with a perfect 100% win rate and 0.92% average return.
• Bearish Engulfing: Score of 6.32 – a bearish pattern but with a decent win rate of 62.5% and average return of 0.36%.
• RSI Oversold: Score of 5.66 – neutral with average historical returns and a 55.56% win rate.

Over the last five days, key patterns observed include:

• 2025-08-15: WR Oversold, Inverted Hammer, Marubozu White – a mixed signal with bearish and potential reversal patterns.
• 2025-08-18: WR Oversold, Bearish Engulfing, RSI Oversold – a continuation of bearish and neutral patterns.

The technical insights indicate a volatile and unclear direction, with long and short signals balanced. Investors are advised to closely monitor developments as momentum is not strong.

Conclusion

Consolidated Edison (ED) presents a moderate fundamental outlook but is weighed down by weak technical signals and mixed analyst ratings. The stock has seen declining prices and negative money flow across all investor categories. While some bullish indicators like the Inverted Hammer suggest a potential reversal, bearish patterns like Marubozu White and WR Oversold cloud the outlook.

Actionable Takeaway: Investors should consider waiting for a clearer breakout or a pull-back before making a move. Given the current volatility and mixed signals, patience may be the best strategy for ED at this time.