Edison International (EIX), with a market cap of $32.1 billion, is a leading clean and reliable energy provider. Based in Rosemead, California, the company operates through its subsidiaries, Southern California Edison and Edison Energy LLC.
Shares of this electric power provider have underperformed the broader market over the past 52 weeks. EIX has gained 20.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.1%. In 2024, EIX's shares have climbed 16.7%, closely mirroring SPX's 16.5% YTD gains.
However, zooming in further, while EIX has outpaced the S&P 500 Utilities Sector SPDR's (XLU) 17.6% gains over the past 52 weeks, it lagged behind XLU's 17.5% increase on a YTD basis.
Edison International has underperformed the SPX over the past year due to wildfire-related financial risks and regulatory uncertainties affecting investor confidence. However, the stock rose 2.7% following its Q2 earnings release on Jul. 25 due to a stronger-than-expected profit driven by electricity rate hikes and higher authorized revenue. The company also reaffirmed its full-year profit forecast, further boosting investor confidence.
For the current fiscal year, ending in December, analysts expect EIX's EPS to grow 3.8% year over year to $4.94. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight "Strong Buy" ratings, one "Moderate Buy," six "Holds,” and one "Strong Sell."
This configuration is slightly less bullish than two months ago, with nine “Strong Buy” ratings on the stock.
On Aug. 14, Evercore ISI raised its price target on Edison International to $88 - the street-high price target and maintained an “Outperform” rating. The firm is optimistic about a favorable General Rate Case outcome and potential upside from a possible TKM settlement. This implies a modest potential upside of just 5.5% from the current price levels. As of writing, EIX is trading above the mean price target of $80.75.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
