Stock Analysis | Consolidated Edison Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

Takeaway: Consolidated Edison (ED) is currently underperforming with a recent price decline of 3.54%. Our internal diagnostic score (0-10) for technical analysis is 3.48, signaling a weak trend and suggesting investors may want to avoid the stock for now.

News Highlights

While the headlines about Tesla's Optimus and other industry innovations are generating excitement elsewhere, the news related to ED has been relatively quiet. Here are a few notable developments:

• HH Chemical Launches BIODEX® – While not directly related to ED, this bio-based materials brand could signal growing momentum in sustainable infrastructure, an area where ED operates.
• Filtering Microplate Market Analysis – Reports suggest the filtering microplate market is on track for growth through 2031, potentially benefiting utility and industrial sectors.
• Allstate Corporation Announces Catastrophe Losses – This report highlights the volatility of macroeconomic conditions, which could indirectly affect utility stocks like ED that are sensitive to rate changes and regulatory shifts.

Analyst Views & Fundamentals

Recent analyst coverage of ED is mixed. The simple average of their ratings is 2.75, while the performance-weighted rating is slightly lower at 2.21. This suggests a neutral to bearish outlook among analysts, with some divergence in their views. The ratings are not highly consistent, with recent ratings distributed as: 1 Buy, 1 Neutral, and 2 Sell ratings.

The price trend has been falling, which aligns with the weighted expectations of the market, but the overall sentiment is still mixed. Here are the key fundamental values and their internal diagnostic scores (0-10):

• PE Ratio: 124.31 (internal score: 3)
• Gross Profit Margin: 53.15% (internal score: 2)
• Cost of Sales Ratio: 46.85% (internal score: 4)
• Annualized Return on Equity: 9.08% (internal score: 0)
• Total Profit YoY Growth: 21.35% (internal score: 2)
• Shareholders’ Equity Growth: 8.17% (internal score: 0)
• ROE (diluted): 4.37% (internal score: 0)
• Revenue-MV: 2.00 (internal score: 2)
• Asset-MV: 1.23 (internal score: 3)
• Cash-MV: 1.26 (internal score: 0)

Despite some positive growth metrics, the overall internal diagnostic score (4.33) for fundamentals indicates modest strength. However, key metrics like ROE and ROE (diluted) show weak returns, which are a concern for long-term investors.

Money-Flow Trends

Big-money players are moving out, with the overall inflow ratio at 0.488. This means more funds are exiting than entering across all sizes of investors. The breakdown by size shows:

• Small Inflow Ratio: 0.492
• Medium Inflow Ratio: 0.485
• Large Inflow Ratio: 0.480
• Extra-Large Inflow Ratio: 0.493

Our internal diagnostic score (7.79) for fund flow is relatively high, indicating the trend is negative but with some structure. This suggests that while institutional and large investors are cautious, their actions are not chaotic, and there's some clarity in the outflow pattern.

Key Technical Signals

Technically, ED is struggling. The internal diagnostic score (3.48) is very low, indicating a weak trend. Here are the details:

• WR Oversold: internal score: 1.3 – This indicator has a neutral bias, with a 40.68% win rate and average returns of -0.61%.
• RSI Oversold: internal score: 5.66 – This one shows a neutral rise, with a 55.56% win rate and average returns of 0.45%.

Recent signals over the last five days include a mix of WR Oversold and RSI Oversold indicators. On 2025-09-02, both WR and RSI showed oversold signs, but they haven't triggered a strong reversal. The key insights show that the market is volatile and the direction is unclear. With more bearish indicators than bullish ones, technical analysis suggests a wait-and-see approach.

Conclusion

Consolidated Edison (ED) is currently in a weak technical position with a low internal diagnostic score (3.48), and the market is showing divergence in analyst opinions. While fundamentals still offer some value, key metrics like ROE and margin trends are lagging. The fund-flow trends also point to outflows from large and institutional investors. In this environment, investors may want to consider waiting for a clearer trend or a potential pull-back before making any new commitments in ED.