Based in Rosemead, California, Edison International (EIX) is one of the largest U.S. electric utility holding companies and provides clean and reliable energy through its subsidiaries. Valued at a market cap of $32.9 billion, it owns Southern California Edison, serving customers across Southern, Central, and Coastal California, and Edison Energy LLC, a global advisory firm offering decarbonization and energy solutions to commercial, industrial, and institutional clients.
Companies valued at $10 billion or more are typically classified as "large-cap stocks," and Edison is a prime example of this. It benefits from a supportive regulatory environment that enables periodic rate adjustments, ensuring revenue stability and growth. Additionally, the company's proactive infrastructure investment program addresses load growth, infrastructure replacement, and undergrounding, enhancing service reliability and positioning the company for long-term growth in the utility sector.
EIX shares are trading 2.8% below their 52-week high of $88.77, which they hit on Sep. 4. The stock has gained 17.8% over the past three months, outperforming the broader Nasdaq Composite ($NASX), which has marginally declined over the same time frame.
In the longer term, EIX is up 20.7% on a YTD basis and climbed 20.5% over the past 52 weeks. In comparison, the Nasdaq has gained 17.2% in 2024 and rallied 28.3% over the past year.
To confirm its bullish trend, EIX has been trading above its 200-day moving average since mid-April and over the 50-day moving average since mid-July.
EIX surged 2.7% on July 25, following a robust Q2 earnings report that exceeded expectations, propelled by electricity rate hikes and increased authorized revenue. Investor confidence was further amplified as the company reaffirmed its full-year profit forecast, solidifying its strong market position.
Highlighting the contrast in performance, EIX's competitor, NextEra Energy, Inc. (NEE), has outperformed both the EIX and the broader index, gaining 39.4% on a YTD basis.
Analysts are cautiously bullish about EIX's prospects despite its recent outperformance. The stock has a consensus rating of "Moderate Buy" from 17 analysts in coverage. The mean price target of $86.43 reflects a marginal premium over current price levels.
On the date of publication, Kritika Sarmah 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.
