Consolidated Edison (ED) Falls Further As It's Water-Logged And Getting Wetter

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 Consolidated Edison ( ED) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Consolidated Edison as such a stock due to the following factors:

  • ED has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.7 million.
  • ED has traded 1.6 million shares today.
  • ED traded in a range 200.2% of the normal price range with a price range of $1.65.
  • ED traded below its daily resistance level (quality: 14 days, meaning that the stock is crossing a resistance level set by the last 14 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ED with the Ticky from Trade-Ideas. See the FREE profile for ED NOW at Trade-Ideas

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 4.4%. ED has a PE ratio of 16.0. Currently there is 1 analyst that rates Consolidated Edison a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Consolidated Edison has been 2.5 million shares per day over the past 30 days. Consolidated Edison has a market cap of $16.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of -0.06 and a short float of 5.5% with 6.83 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Consolidated Edison as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $1,314.00 million or 36.73% when compared to the same quarter last year. In addition, CONSOLIDATED EDISON INC has also vastly surpassed the industry average cash flow growth rate of -57.14%.
  • CONSOLIDATED EDISON INC has improved earnings per share by 12.9% in the most recent quarter compared to 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 reported lower earnings of $3.61 versus $3.86 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus $3.61).
  • The net income growth from the same quarter one year ago has exceeded that of the Multi-Utilities industry average, but is less than that of the S&P 500. The net income increased by 13.0% when compared to the same quarter one year prior, going from $207.00 million to $234.00 million.
  • Despite the weak revenue results, ED has outperformed against the industry average of 30.1%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
null

If you liked this article you might like

What Happened to American Society Is Happening to the Stock Market, Too: Market Recon

Green Energy Is Threatening to Cripple Many Utilities

Consolidated Edison: Cramer's Top Takeaways

More Companies Making New Highs: Cramer's 'Mad Money' Recap (Wednesday 5/31/17)