Consolidated Edison (ED) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Consolidated Edison as such a stock due to the following factors:
- ED has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.71 mentions/day.
- ED has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $159.1 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on ED:
Consolidated Edison, Inc. is engaged in regulated electric, gas, and steam delivery businesses in the United States. The stock currently has a dividend yield of 4.2%. ED has a PE ratio of 16.7. Currently there is 1 analyst that rates Consolidated Edison a buy, 4 analysts rate it a sell, and 4 rate it a hold.
The average volume for Consolidated Edison has been 2.4 million shares per day over the past 30 days. Consolidated Edison has a market cap of $18.1 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.09 and a short float of 6.5% with 7.40 days to cover. Shares are down 5.8% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Consolidated Edison as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, CONSOLIDATED EDISON INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CONSOLIDATED EDISON INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CONSOLIDATED EDISON INC increased its bottom line by earning $3.71 versus $3.61 in the prior year. This year, the market expects an improvement in earnings ($3.91 versus $3.71).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Consolidated Edison Ratings Report.
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