Consolidated Edison ED benefits from rising electricity demand, grid modernization and maintenance of its electric, gas and steam delivery systems, supporting service reliability and financial performance. The company invests systematically in renewable and storage expansion, boosting its long-term growth.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Projections for ED & Surprise History
The Zacks Consensus Estimate for ED’s 2026 and 2027 earnings have moved up 0.33% and 0.47%, respectively, in the past 60 days. The Zacks Consensus Estimate for ED’s 2026 and 2027 sales is pinned at $17.45 billion and $18.38 billion, indicating year-over-year growth of 3.14% and 5.35%, respectively.
ED’s long-term (three to five years) earnings growth rate is 6.47%.
ED surpassed the Zacks Consensus Estimate in three of the last four reported quarters and missed it once, delivering an average positive earnings surprise 2.24%.
ED’s Stable Investments
The company undertakes systematic capital investment for renewable expansion while upgrading and modernizing its electric, gas and steam delivery infrastructure. This supports the company’s carbon neutrality plan, improves operational efficiency, enhances service reliability and supports long-term growth.
The company aims to invest $6.6 billion in 2026 and nearly $38 billion for 2026-2030. Consolidated Edison's 10-year investment plan includes $2.9 billion in clean energy generation and $2.6 billion to strengthen climate resilience.
ED’s Shareholder Return Program
The company has been rewarding its shareholders with continuous dividend increases for 52 years. It announced a dividend of 88.75 cents, resulting in an annualized dividend of $3.55, reflecting a 4.4% increase from 2025. Consolidated Edison has a dividend yield of 3.42% versus the Zacks S&P 500 composite’s average of 1.45 %.
ED’s Debt Position
The debt-to-capital ratio measures the extent to which a company relies on debt financing relative to its total capital, reflecting its financial leverage and long-term solvency. ED’s total debt-to-capital is 50.20%, which is lower than the industry’s 59.94%, indicating stronger financial stability and lower leverage risk.
ED’s time earned ratio (TIE) at the end of the first quarter of 2026 was 3.3. The TIE ratio reflects a company’s ability to meet long-term debt obligations by evaluating how effectively operating earnings cover interest expenses and serves as an indicator of long-term solvency and financial health.
Price Performance of ED
In the past six months, Consolidated Edison shares have risen 9.4% compared with the industry’s 2.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are Duke Energy DUK, Companhia Paranaense de Energia - Copel Unsponsored ADR ELPC and PG&E PCG, each carries a Zacks Rank #2 at present.
DUK, ELPC and PCG dividend yields are 3.52%, 5.01% and 1.21%, respectively.
The Zacks Consensus Estimate for Duke Energy, ELPC and PG&E 2026 EPS is pegged at $6.71, 74 cents and $1.65, suggesting year-over-year growth of 6.34%,45.10% and 10%, respectively.
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Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
Consolidated Edison Inc (ED): Free Stock Analysis Report
Companhia Paranaense de Energia - Copel Unsponsored ADR (ELPC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).