Why Consolidated Edison (ED) is a Top Momentum Stock for the Long-Term

Consolidated Edison (ED), a diversified utility holding company, is highlighted as a top momentum stock, currently holding a Zacks Rank #3 (Hold) with a VGM Score of B and a Momentum Style Score of B. The company's shares have advanced 4.9% over the past four weeks, underpinned by an average earnings surprise of +2% and a fiscal 2025 consensus earnings estimate of $5.62 per share, following a recent upward revision by one analyst. These metrics suggest ED warrants consideration for investors' short lists.

Analysis

Consolidated Edison (ED), a diversified utility holding company, currently holds a Zacks Rank #3 (Hold) and a strong VGM Score of B, indicating a balanced profile across value, growth, and momentum. The company also boasts a Momentum Style Score of B, suggesting favorable price and earnings estimate trends within the utilities sector. This combination of scores positions ED as a stock warranting investor attention despite its neutral Zacks Rank.

ED's shares have demonstrated positive momentum, rising 4.9% over the past four weeks. This performance is underpinned by a consistent average earnings surprise of +2% and a stable fiscal 2025 Zacks Consensus Estimate of $5.62 per share, following an upward revision by one analyst within the last 60 days.

The company completed the sale of its Con Edison Clean Energy businesses in March 2023, a strategic move that may streamline its operational focus. The strong Momentum and VGM Style Scores, coupled with positive earnings estimate revisions and recent share price appreciation, suggest a constructive outlook for ED, particularly for investors prioritizing these technical and fundamental indicators.

Key Decisions for Investors

• Monitor ED's continued momentum, especially given its B-rated Momentum Style Score and recent 4.9% share price increase over four weeks.
• Evaluate the implications of the March 2023 Clean Energy business divestiture on future earnings stability and growth trajectory within its core utility operations.
• Consider ED for short-term or momentum-oriented portfolios, acknowledging its Zacks Rank #3 (Hold) but strong underlying Style Scores and positive earnings surprise history.