The Rosemead, California-based Edison International (EIX) is an electric utility holding company that generates and provides clean and reliable energy and energy services. Valued at a market cap of $32.4 billion, the company also provides integrated decarbonization and energy solutions to commercial, industrial, and institutional customers.
Shares of this electric utility company have underperformed the broader market over the past 52 weeks. EIX has gained 28.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.4%. Moreover, shares of EIX are up nearly 17.1%, lower than SPX’s 23.1% gain on a YTD basis.
Narrowing the focus, EIX is in line with the Utilities Select Sector SPDR Fund’s (XLU) 28.3% gain over the past 52 weeks but has underperformed XLU’s 25.1% rise on a YTD basis.
Shares of EIX increased marginally after its Q3 earnings release on Jul. 29. Its adjusted earnings rose 9.4% to $1.51 per share and surpassed the Wall Street estimates of $1.39. The company’s revenues of $5.2 billion also exceeded the estimates of $4.76 billion and climbed 10.6% from a year ago. However, the company reduced its 2024 full-year earnings guidance to $4.80 to $5 per share.
For the current fiscal year, ending in December, analysts expect EIX’s EPS to decline 8.6% year over year to $1.17.The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 10 “Strong Buy,” one “Moderate Buy,” five “Hold,” and two “Strong Sell” ratings.
On Oct. 30, Barclays analyst Nicholas Campanella maintained an “Equal Weight” rating on EIX and raised the price target to $91, which indicates an 8.7% upside from the current levels.
The mean price target of $90.09 represents a 7.7% upside from EIX’s current price levels. The Street-high price target of $100 suggests an upside potential of 19.5%.
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