Consolidated Edison shares lag market as analysts maintain cautious stance

Consolidated Edison has significantly underperformed the broader equity market over the past year, rising just 3.3 per cent compared to the S&P 500’s 26.6 per cent gain. The New York-headquartered utility, which provides electricity, natural gas, and steam services through its primary subsidiary Con Edison of New York, holds a market capitalisation of $39.1 billion. Despite a 7.6 per cent year-to-date rise in 2026, the stock has trailed the S&P 500’s 8.1 per cent advance over the same period.

On April 28, the company reported first-quarter 2026 earnings, revealing an adjusted earnings per share of $2.18, a 3.5 per cent decline year-on-year. Operational performance was supported by strong demand trends across its regulated utility business, driven by ongoing electrification and infrastructure investments in its New York service territories. The company reaffirmed its full-year 2026 non-GAAP earnings per share guidance in the range of $6.00 to $6.20.

Analyst sentiment remains measured, with a consensus Hold rating among the 19 analysts covering the stock. The rating breakdown includes three Strong Buy, ten Hold, one Moderate Sell, and five Strong Sell recommendations. On May 11, Barclays analyst Nicholas Campanella reiterated an Underweight rating and lowered the price target to $107 from $110, citing a cautious outlook on the utility’s near-term prospects.

The mean price target for Consolidated Edison stands at $111.82, representing a 4.6 per cent premium to current price levels, while the Street-high target of $130 suggests an upside potential of 21.6 per cent. For the current fiscal year ending in December, analysts expect diluted earnings per share to grow 6.4 per cent to $6.09. The company’s earnings surprise history is mixed, having beaten consensus estimates in three of the last four quarters.

Relative to sector peers, Consolidated Edison’s performance shows divergence. The Utilities Select Sector SPDR Fund (XLU) gained approximately 13.3 per cent over the past year, outperforming the stock’s annual returns. However, the ETF’s 5.9 per cent year-to-date return lags behind Consolidated Edison’s 7.6 per cent gain, indicating a complex dynamic between the individual utility and the broader sector index.