Consolidated Edison’s ED systemic investments to modernize infrastructure and expand its renewable generation portfolio are likely to further enhance the reliability of its operations. Given its growth opportunities, the company makes for a solid investment option in the Utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
ED’s Growth Projections & Surprise History
The Zacks Consensus Estimate for ED’s 2026 earnings per share is pinned at $6.06, which indicates year-over-year growth of 6.3%.
The consensus estimate for 2026 sales is pinned at $17.21 billion, which indicates year-over-year growth of 1.7%.
The company’s long-term (three to five years) earnings growth is pinned at 6.5%.
ED has a positive earnings surprise history. Its trailing four-quarter earnings surprise is 3.31%, on average.
ED’s Debt Position
Consolidated Edison’s debt-to-capital at the end of the fourth quarter of 2025 was 52.09%, which compared favorably with its industry average of 61.04%.
The time-to-interest earned ratio at the end of the fourth quarter of 2025 was 3.11. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
ED’s Dividend Yield
ED has been consistently paying dividends to its shareholders. Currently, its dividend yield is 3.10%, better than the Zacks S&P 500 composite’s 1.14%.
ED’s Systematic Investments
Consolidated Edison continues to follow a systematic capital investment plan for infrastructure development and maintain the reliability of its electric, gas and steam delivery systems. The company spent capital worth $5 billion in 2025, up from last year’s level of $4.73 billion. It has a robust capital expenditure plan of $38 billion for the 2026-2030 period.
Over the next 10 years, it aims to invest $72 billion in significant energy infrastructure. As part of its 10-year capital expenditure plan, Consolidated Edison aims to spend $2.9 billion to support clean energy generation and $2.6 billion to address climate resilience. Through these investments and the aforementioned renewable energy development, the company aims to build an energy grid that will deliver reliable, clean energy and meet its customers’ electrification needs.
ED Stock’s Price Performance
In the past three months, the stock has gained 15.4% compared with the industry’s 11.2% growth.
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Other Stocks to Consider
Other top-ranked stocks from the same industry are Entergy ETR, DTE Energy DTE and Exelon Corporation EXC. Each of these stocks carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ETR’s long-term earnings growth rate is 11.5%. The Zacks Consensus Estimate for ETR’s 2026 earnings indicates year-over-year growth of 12.5%.
DTE’s long-term earnings growth rate is 7.1%. The consensus estimate for DTE’s 2026 earnings indicates year-over-year growth of 4.9%.
EXC’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for EXC’s 2026 earnings indicates year-over-year growth of 2.9%.
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This article originally published on Zacks Investment Research (zacks.com).