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EIX Stock Analysis — Edison International

Sector: Utilities

AI Verdict

EIX is cheap for the sector at 11.6x forward earnings, but with -28.0% EPS growth expected, you’re paying a low price for a shrinking pie and the moat only matters if earnings stabilize.

Competitive Moat

Edison International operates regulated electric utilities in California, benefiting from guaranteed returns set by state regulators. Its defensibility comes from high barriers to entry and the essential nature of grid infrastructure, making its customer base and revenue stream stable.

Summary

A 50.90% 1-year return and a 8.3x trailing P/E make EIX a standout among utilities, but sharply negative earnings growth is looming.

Where It Stands

With a 61.3 RSI, EIX is in neutral territory after a 50.90% 1-year run, and its 11.6x forward P/E is well below the 18x sector median for utilities.

Key Metrics

Analyst Consensus

10 Buy · 8 Hold · 4 Sell (22 analysts)

Bull Case

EIX trades at just 11.6x next year's earnings, offering a steep discount to the sector's 18x median despite its regulated monopoly status.

Bear Case

Consensus expects -28.0% forward EPS growth, so if the 11.6x P/E holds, investors face a shrinking earnings base and likely multiple compression.

Catalyst to Watch

Watch for regulatory decisions or wildfire liability updates—either could materially change forward earnings expectations.

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