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 $31.4 billion, the company also provides integrated decarbonization and energy solutions to commercial, industrial, and institutional customers.
Companies valued at $10 billion or more are typically classified as "large-cap stocks," and Edison is a prime example of this. The company thrives in a favorable regulatory environment that allows for periodic rate adjustments, providing stable and growing revenue streams. Moreover, its strategic infrastructure investments focus on accommodating load growth, replacing aging systems, and undergrounding, which not only boost service reliability but also strengthen its position for sustained growth in the utility sector.
EIX shares are trading 9.3% below their 52-week high of $88.77, which they hit on Sep. 4. The stock has plunged 6.5% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 4.4% gains during the same time frame.
In the longer term, EIX is up 12.6% on a YTD basis and climbed 14.9% over the past 52 weeks. In comparison, the DOWI has gained 15.3% in 2024 and rallied 16.5% over the past year.
EIX has been trading above its 200-day moving average since mid-April but under the 50-day moving average since early December.
Shares of EIX increased marginally after its Q3 earnings release on Oct. 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.
Highlighting the contrast in performance, EIX's competitor, NextEra Energy, Inc. (NEE), has outperformed EIX, gaining 19% on a YTD basis and 17.5% over the past year.
Analysts are cautiously bullish about EIX's prospects due to its recent underperformance. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target of $91.09 reflects a premium of 13.2% from current price levels.
