Here’s why Jim Cramer is bullish on a consolidated Edison, Inc. (NYSE:ED)

We recently published the list Jim Cramer’s Q4 Stock Portfolio: 11 Best Stocks to Buy and Sell. Because Consolidated Edison, Inc. (NYSE:ED) ranks 10th on the list, it deserves a deeper look.

Jim Cramer spoke on a recent CNBC show about the importance of using short-term rallies to your advantage. He said investors should know when to take their chips off the table.

“The idea that you should buy and hold in both the best of times and the worst of times is probably incredibly stupid, with very few exceptions,” Cramer said.

Cramer said that if the stock you bought keeps rising higher and higher and you continue to resist the temptation to take profits, you won’t make any actual money on those gains if the stock later falls, reducing all those gains. It seems simple, but the idea of buying low and selling high is easier said than done, Cramer said.

“Don’t get carried away by optimism. Instead, keep your head straight, check your emotions, focus on the long term and think about getting on the books, especially in stocks that may be trading too high,” Cramer added.

For this article, we watched some of Jim Cramer’s latest shows on CNBC and selected the 10 stocks he talks about. We also picked up Cramer’s interesting 2021 stock forecast and saw how it performed. We have listed the number of hedge fund investors for each company. Why are we interested in stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the best stocks of the best hedge funds. As part of our quarterly newsletter strategy, we select 14 small- and large-cap stocks every quarter, and since May 2014, we have returned 275%, beating our benchmark by 150 percentage points (see more details here).

According to Jim Cramer, was Consolidated Edison, Inc. (NYSE:ED) is the most frequently bought and sold?

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Consolidated Edison, Inc. (NYSE:ED)

Number of hedge fund investors: 32

Jim Cramer recently said on CNBC that Consolidated Edison, Inc. (NYSE:ED) has “strong profitability” and the stock has “prospective growth.”

Although the dividend yield of Consolidated Edison, Inc. (NYSE:ED) is low compared to other utilities, the natural gas and electric utilities it regulates are expected to continue to generate stable, recurring revenue despite a challenging regulatory environment. The 2023 settlement of ConEd’s New York operations raised its return on equity (ROE) to 9.25%, an improvement from the previous 8.8%, which was the lowest among other utilities. Consolidated Edison, Inc. (NYSE:ED), with a BBB+/A- credit rating and a market capitalization of more than $31 billion, reported stable first-quarter earnings on a strong interest rate base as the company continues to pursue its 100% clean energy goal.

The company reduces risk by selling 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) forecasts 6.4% annual growth in its rate base through 2028, driven by continued investments in cleaner energy.

Overall, Consolidated Edison, Inc. (NYSE:ED) is ranked 10th on Insider Monkey’s list titled Jim Cramer’s Q4 Stock Portfolio: 11 Best Stocks to Buy and Sell. While we see the potential for Consolidated Edison, Inc. (NYSE:ED), our belief is that AI stocks have a better chance of delivering higher returns, faster. If you’re looking for AI stocks that show more promise than ED but are trading at less than 5x earnings, check out our report on cheapest AI stocks.

READ MORE: The analyst sees a new “opportunity” for NVIDIA worth $25 billion AND Jim Cramer recommends these stocks.

Disclosure: None. This article was originally published at Insider Monkey.