Wall Street's Attitude Toward Edison International: Bullish or Bearish Sentiments Prevailing?
In the energy sector, Edison International (EIX) has experienced a significant decline in its stock price over the past 52 weeks, with a drop of 33.3%. This underperformance is primarily due to the liabilities and regulatory challenges related to major wildfire incidents, such as the Eaton fire earlier this year and the 2020 Bobcat fire settlements, which have increased financial and operational risks for the company.
Based in Rosemead, California, Edison International is a major energy company that operates primarily through its subsidiary, Southern California Edison (SCE), supplying electricity to millions of people across coastal, central, and southern California. The company is committed to clean energy, investing in the modernization of the electric grid and the expansion of renewable power sources.
Despite these challenges, the company maintains moderate fundamentals and profitability. Wall Street analysts predict a 23.1% Year-Over-Year growth in Edison International's EPS to $6.07 for the current year ending in December 2025. However, technical indicators are currently bearish, reflecting caution among investors.
In terms of performance comparison over the past 52 weeks, Edison International’s stock has underperformed both the Utilities Select Sector SPDR Fund (XLU) and the S&P 500 Index. The company's stock had reached a 52-week high of $88.77 in Sep. 2024, but has since declined significantly.
Edison International is not without its long-term prospects. The global incentives for electric vehicle adoption could drive future electricity demand, representing a potential growth tailwind. Meanwhile, the company's focus on innovative energy technologies to support the transition to a low-carbon economy and promote long-term sustainability may also contribute to recovery over the longer term.
It's important to note that the information and data in this article are solely for informational purposes. For more information, please view the article's Disclosure Policy here. The Street-high price target of Edison International's stock is $86, implying a potential upside of 54.6%. Among the 15 Wall Street analysts covering Edison International's stock, the consensus is a "Moderate Buy." The configuration of the ratings is less bullish than it was three months ago, with one less "Strong Buy" rating. The mean price target of Edison International's stock is $66.25, indicating a 19.1% upside over current market prices.
Anushka Mukherjee, the author of this article, did not have positions in any of the securities mentioned.
| Aspect | Edison International (EIX) | S&P 500 & XLU Comparison | |--------------------------------|-----------------------------------------------|------------------------------------| | Stock Decline Over Past 52 Weeks| -33.3% | Outperformed by both S&P 500 & XLU | | Primary Reasons for Decline | Eaton fire & Bobcat fire liabilities, regulatory scrutiny | N/A | | Recent Earnings | Q2 2025 net income: $343 million (decline) | N/A | | Analyst EPS Growth Expectation | +23.1% YoY to $6.07 (2025) | N/A | | Technical Signals | Bearish (score 1.15), 3:0 bearish indicator ratio | N/A | | Macroeconomic Factors | Visa policy uncertainty, Michigan clean energy push | N/A | | Long-term Prospects | Positive EV demand and clean energy adoption potential | N/A |
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