Key Stats for ED Stock
- Year-to-Date Performance: 13%
- 52-Week Range: $95 to $115
- Valuation Model Target Price: $137
- Implied Upside: 23%
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What Happened?
Consolidated Edison stock is up about 13% year to date, recently trading near $112 per share as investors responded to reaffirmed long-term earnings growth targets, a multi-year capital investment plan, and steady institutional accumulation. Shares have climbed toward the upper end of their $95 to $115 52-week range as demand for regulated, earnings-stable utilities strengthened.
The stock moved higher after management reaffirmed a five-year adjusted EPS growth target of 6% to 7% and guided 2026 adjusted EPS to $6.00 to $6.20, reinforcing confidence in predictable regulated returns despite a quarterly earnings miss.
This week, the company reported fourth quarter adjusted earnings of $0.89 per share, below the $0.95 estimate, as operating expenses rose to $3.51 billion from $3.16 billion and interest expense increased to $313 million.
CFO Kirk Andrews said, “We expect five-year adjusted profit per share to grow at a compounded annual rate target of 6 to 7 percent.”
Full-year 2025 adjusted earnings increased to $5.70 per share from $5.40 in 2024, and the company outlined capital investments of $6.60 billion in 2026 and $6.76 billion in 2027, plus $24.34 billion across 2028 to 2030.
That level of planned infrastructure spending expands the regulated rate base, which drives earnings growth through approved returns rather than volume expansion.
Institutional filings showed continued sponsorship. Vanguard increased its stake to 45,174,933 shares, representing 12.53% ownership valued at $4.54 billion, while Citigroup boosted its position 8.5% to 852,827 shares and JPMorgan increased its stake 2.1% to 1,831,756 shares.
NEOS Investment Management raised its stake 44.3% to 43,701 shares, Texas Yale Capital increased its position 73.8% to 28,902 shares, and HighTower Advisors grew its holdings 17% to 162,359 shares, while firms including PNC Financial and Shell Asset Management trimmed exposure.
Institutional investors now own 66.29% of the company, reinforcing strong long-term sponsorship behind the move higher this year.
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Is ED Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 3.5%
- Operating Margins: 21.8%
- Exit P/E Multiple: 18.3x
Revenue is projected to increase from $16.92 billion in 2025 to $20.03 billion by 2030, reflecting regulated electric and gas infrastructure investment, clean energy integration, and continued transmission upgrades.
Growth is driven primarily by rate base expansion rather than cyclical demand.
Operating margins near 21.8% depend on constructive rate case outcomes, cost recovery mechanisms, and disciplined capital execution.
As grid modernization and resiliency investments move into the regulated asset base, earnings visibility improves because those projects earn approved returns.
Over the next 12 months, capital deployment tied to electrification, storm hardening, and infrastructure replacement remains a key earnings lever.
Each incremental dollar of approved investment expands the rate base, supporting steady EPS growth without relying on economic acceleration.
Dividend sustainability remains supported by a payout ratio near 58% and a dividend yield of 3.2%, reinforcing total return potential alongside low volatility and a beta of 0.39.
Based on these inputs, the valuation model estimates a target price of $137, implying about 23% total upside over roughly 2.8 years.
At current levels near $112, Consolidated Edison appears modestly undervalued, with performance in 2026 likely driven by regulated rate base expansion, capital discipline, and earnings consistency rather than rapid revenue acceleration.
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How Much Upside Does ED Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
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