We recently published a list of Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell. Since Consolidated Edison, Inc. (NYSE:ED) ranks 10th on the list, it deserves a deeper look.
Jim Cramer in a latest program on CNBC talked about the importance of using short-term rallies to your advantage. He said that investors should know when to take the chips off the table.
“The idea that you should buy and hold through both the best of times and worst of times is probably incredibly foolish, with only very few exceptions,” Cramer said.
Cramer said that if the stock you bought is going higher and higher and you keep resisting the urge to take some profits, you won’t make any actual money from these gains if the stock comes down later paring all these profits. This seems straightforward but the idea of buying low and selling high is easier said than done, Cramer said.
“Don’t get carried away by the optimism. Instead, keep your head on straight, check your emotions, focus on long term and think about ringing the register, especially on stocks that might be getting too high,” Cramer added.
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. We also picked an interesting prediction Cramer made back in 2021 about a stock and saw how it turned out. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Investors: 32
Jim Cramer recently said in a program on CNBC that Consolidated Edison, Inc. (NYSE:ED) has a “great yield” and the stock can “project itself higher.”
While Consolidated Edison, Inc. (NYSE:ED) dividend yield is low when compared to other utilities, its regulated natural gas and electric utilities are expected to keep generating stable, recurring income despite the challenging regulatory environment. The 2023 settlement for ConEd’s New York City operations raised its return on equity (ROE) to 9.25%, an improvement from the previous 8.8%, which was the lowest among its utility peers. Consolidated Edison, Inc. (NYSE:ED), with a BBB+/A- credit rating and a market cap of over $31 billion, reported steady first-quarter earnings driven by its strong rate base, and the company continues to push toward its goal of providing 100% clean energy.
The company is decreasing risk by selling off non-core assets, such as clean energy and gas pipelines. For example, the company sold its clean energy assets to RWE.
Consolidated Edison, Inc. (NYSE:ED) is projecting a 6.4% annual growth in its rate base through 2028, driven by continued investments in cleaner energy.
Overall, Consolidated Edison, Inc. (NYSE:ED) ranks 10th on Insider Monkey’s list titled Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell. While we acknowledge the potential of Consolidated Edison, Inc. (NYSE:ED), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ED but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
