Posted 12/31/2023, 12:41:13 PM
Con Edison Stock Faces Risks Despite Current Undervaluation
- Consolidated Edison's P/E ratio of 13.2x is lower than the market average, indicating potential undervaluation
- The company has shown strong recent earnings growth of 42% last year and 70% over 3 years
- However, earnings are expected to decline by 4.7% per year over the next 3 years
- The low P/E ratio reflects expectations that earnings growth will degrade substantially
- Unless earnings forecasts improve, the current P/E ratio may represent a floor for the stock price