Consolidated Edison, Inc. (ED), headquartered in New York City, is a major player in the energy sector, delivering reliable and sustainable energy solutions to millions of customers in the U.S. With a market cap of $31.6 billion, Consolidated Edison is committed to advancing renewable energy initiatives and innovative technologies, empowering communities and businesses to meet their energy needs while promoting environmental stewardship.

Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Consolidated Edison comfortably fits into this category. Consolidated Edison operates primarily in the northeastern U.S. and serves millions of residential, commercial, and industrial customers, offering a diverse portfolio of reliable and sustainable energy solutions.

Consolidated Edison's shares are trading 15.7% below their 52-week high of $107.75, which they hit on Oct. 24. The stock has declined 13.1% over the past three months, significantly underperforming the Vanguard Utilities Index Fund ETF (VPU), which has gained 3% over the same time frame.

Over the longer term, ED has slightly underperformed on a YTD basis, trailing VPU's 21% return. Similarly, over the past 52 weeks, ED's 1.1% gain has fallen short of VPU's 20% increase.

ED has been trading below its 50-day moving average since late October, indicating a bearish trend. Also, it has stayed beneath its 200-day moving average since early December. 

Consolidated Edison has faced underperformance within the utilities sector, driven by concerns over its aging infrastructure and limited investments in renewable energy. These issues have drawn increased scrutiny from regulators and investors, emphasizing the need for modernization and sustainability to remain competitive in a transforming industry.

On Nov. 7, ED stock dipped over 1% despite reporting strong Q3 earnings results. Its adjusted EPS of $1.68, up 3.7% year-over-year, surpassed Wall Street expectations of $1.56. Revenue increased 5.7% to $4.1 billion, also exceeded forecasts. The company updated its 2024 adjusted EPS guidance to a range of $5.30 to $5.40.

Its rival, PG&E Corporation (PCG), has gained 11% over the past 52 weeks and has risen 9.3% on a YTD basis, outpacing ED over the same time frames, respectively.

Analysts remain cautious about ED's prospects, given that the stock is underperforming its peers. ED has a consensus rating of “Hold” from the 18 analysts covering the stock and has a mean price target of $103.12, suggesting a potential upside of 13.5% from its current price.