Consolidated Edison Inc. (ED): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Consolidated Edison ( ED) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 1%. By the end of trading, Consolidated Edison fell 80 cents (-1.4%) to $54.43 on heavy volume. Throughout the day, 2.8 million shares of Consolidated Edison exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $54.20-$55.50 after having opened the day at $55.20 as compared to the previous trading day's close of $55.23. Other companies within the Utilities sector that declined today were: American Midstream Partners ( AMID), down 8.6%, Transportadora de Gas del Sur ( TGS), down 6.7%, U.S. Geothermal ( HTM), down 6.1%, and Ocean Power Technologies ( OPTT), down 6.1%.
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Consolidated Edison, Inc., through its subsidiaries, provides energy services to residential, commercial, industrial, and government customers in the United States. Consolidated Edison has a market cap of $16.16 billion and is part of the utilities industry. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are down 11% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Consolidated Edison a buy, two analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Consolidated Edison as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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