What: Shares of Consolidated Edison, Inc. (NYSE:ED) jumped 10% in June after analysts upgraded the stock and investors fled to the safety of utilities.
So what: Analysts at Barclays kept their rating on Consolidated Edison stock at equal weight, but they raised their price target from $69 to $76 per share. Estimates for 2016 earnings were raised by four cents to $3.99 per share, and 2017 and 2018 EPS estimates were raised a penny to $4.09 and $4.28.
On top of the increased analyst expectations, it didn't hurt that investors fled to safety when Brexit hit late in June. And the market generally thinks a regulated utility like Consolidated Edison is about as safe as it gets for investors.
Now what: Nothing fundamentally changed in June for Consolidated Edison, so I don't think it's worth changing your investment thesis. But the company is among the most forward-thinking in adapting to the utility market of the future, announcing last month that it's testing a "virtual power plant." That and the 3.3% dividend yield are attractive from an investment standpoint, but I wouldn't put too much stock in an analyst upgrade or a move higher just because utilities are in favor this month. Both of those factors may change in a month or two.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.