Core Insights - The article compares Edison International (EIX) and NextEra Energy (NEE) to determine which stock offers better value for investors [1] Valuation Metrics - EIX has a forward P/E ratio of 9.39, while NEE has a forward P/E of 22.62, indicating EIX may be undervalued [5] - EIX's PEG ratio is 0.86, compared to NEE's PEG ratio of 2.81, suggesting EIX has a more favorable growth outlook relative to its price [5] - EIX's P/B ratio is 1.28, while NEE's P/B ratio is 2.82, further supporting EIX's valuation advantage [6] Analyst Outlook - EIX holds a Zacks Rank of 2 (Buy), indicating a more positive earnings estimate revision trend compared to NEE, which has a Zacks Rank of 3 (Hold) [3][7] - The improving earnings outlook for EIX positions it as a superior value option in the current market [7]

Core Insights - The article emphasizes that utility companies are evolving into significant players in the AI sector, offering attractive dividend yields of up to 10.4% as demand for AI infrastructure grows [2][22]. Utility Sector Dynamics - Texas is experiencing a surge in power demand, projected to increase by 62% by 2030, with Oncor indicating that current interconnection requests exceed double the peak demand [3][4]. - Portland General Electric (PGE) is leveraging AI technology to enhance grid flexibility, allowing for quicker interconnections for data centers, which positions it for growth despite being a traditional utility [5][6]. Investment Opportunities - Edison International (EIX) offers a nearly 6% yield and a low forward P/E ratio of 9, indicating it may be undervalued despite its known wildfire risks and litigation history [6][7]. - Brookfield Infrastructure Partners (BIP) provides a 4.9% yield and has a diverse asset base that includes significant infrastructure for electricity and data centers, benefiting from the AI megatrend [11][12]. Fund Performance - The MEGI NYLI CBRE Global Infrastructure Megatrends Term Fund offers a 10.1% distribution rate, with a substantial portion of its assets allocated to utility companies, although it also includes exposure to other sectors [17][19]. - The Gabelli Utility Trust (GUT) has a distribution rate of 10.4% and focuses heavily on utility stocks, making it a competitive option for investors seeking utility exposure [20][21].

Core Viewpoint - Edison International (EIX) is set to release its third-quarter 2025 results on October 28, with expectations of an earnings surprise based on previous performance [1][7]. Factors Impacting Q3 Performance - The company has been heavily investing in grid hardening, wildfire mitigation, and renewable energy integration, which are expected to positively influence its earnings [2][11]. - A settlement related to TKM is anticipated to have reduced interest expenses, contributing to improved earnings [3]. - Cooler temperatures in Southern California during July likely decreased electricity demand, negatively impacting sales volumes [4][11]. - Wildfire activity in California may have disrupted power supply operations, leading to temporary outages and increased maintenance costs [5][6][11]. - Higher operations and maintenance expenses for restoration efforts are expected to have affected quarterly earnings [6]. Earnings Expectations - The Zacks Consensus Estimate for EIX's earnings is $1.52 per share, reflecting a year-over-year increase of 0.7% [7]. - Revenue estimates are set at $5.20 billion, indicating a slight decline of 0.01% year over year [7]. Predictive Model Insights - The company's Earnings ESP is +7.15%, suggesting a strong likelihood of an earnings beat [8]. - Edison International currently holds a Zacks Rank of 2 (Buy), further supporting the potential for positive earnings results [9]. Industry Comparisons - Other companies in the industry, such as Xcel Energy (XEL), Eversource Energy (ES), and Alliant Energy (LNT), are also expected to report earnings beats, with respective Earnings ESPs and Zacks Ranks indicating favorable conditions [12][13][14].

Core Thesis - Edison International (EIX) is viewed positively due to its low valuation and potential for capital appreciation, despite legal risks associated with wildfires [1][4][5] Company Overview - Edison International is a California-focused electric utility company, primarily through its subsidiary Southern California Edison (SCE), serving approximately 50,000 square miles [2] - The stock price peaked at $87.75 in November 2024 but has since declined to around $52, largely due to wildfire-related concerns [2] Legal Risks - The company is linked to a wildfire that caused billions in damages, with the key risk being whether EIX is found negligent [3] - If deemed liable but non-negligent, EIX would pay about $4 billion, with the rest covered by government funds [3] - A finding of negligence could lead to uncapped liabilities, threatening financial stability, although there is currently no evidence of negligent behavior [4] Valuation and Investment Opportunity - EIX trades at a low price-to-earnings ratio of 8 compared to industry averages near 20, and offers a dividend yield of 6.19% [4] - The combination of a depressed stock price and strong cash return makes EIX an attractive opportunity for investors willing to accept legal uncertainties [4][5] Future Outlook - If legal matters resolve favorably, the stock could experience significant upside, while the underlying business remains stable with strong regulatory support and long-term growth prospects [5] - EIX presents a risk-adjusted investment case where patience through the resolution of contingent liabilities could yield both capital appreciation and consistent income [5] Hedge Fund Interest - Edison International is not among the 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding EIX at the end of the second quarter, down from 44 in the previous quarter [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Edison International (NYSE:EIX) - Dividend yield is 5.67% [7] - Barclays analyst Nicholas Campanella maintained an Overweight rating and raised the price target from $65 to $69 on October 21, 2025, with a 70% accuracy rate [7] - Jefferies analyst Julien Dumoulin-Smith downgraded the stock from Buy to Hold and cut the price target from $70 to $57 on October 2, 2025, with a 67% accuracy rate [7] - On September 22, Edison's board declared a quarterly common stock dividend of $0.8275 per share [7] Group 2: Portland General Electric Co (NYSE:POR) - Dividend yield is 4.67% [7] - Barclays analyst Nicholas Campanella maintained an Equal-Weight rating and raised the price target from $43 to $47 on October 21, 2025, with a 70% accuracy rate [7] - JP Morgan analyst Richard Sunderland maintained a Neutral rating and cut the price target from $46 to $45 on May 19, 2025, with a 66% accuracy rate [7] - Portland General Electric will host an analyst conference call and webcast on October 31 to review its third quarter financial results [7] Group 3: Eversource Energy (NYSE:ES) - Dividend yield is 4.11% [7] - B of A Securities analyst Ross Fowler upgraded the stock from Neutral to Buy and raised the price target from $73 to $85 on October 21, 2025, with a 68% accuracy rate [7] - Janney Montgomery analyst Michael Gaugler downgraded the stock from Buy to Neutral on October 13, 2025, with a 70% accuracy rate [7] - Eversource Energy will host an earnings conference call on November 5 to discuss its financial performance and business updates through the third quarter [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Edison International (NYSE:EIX) - Dividend Yield: 5.67% [7] - Barclays analyst Nicholas Campanella maintained an Overweight rating and raised the price target from $65 to $69 on Oct. 21, 2025, with an accuracy rate of 70% [7] - Jefferies analyst Julien Dumoulin-Smith downgraded the stock from Buy to Hold and cut the price target from $70 to $57 on Oct. 2, 2025, with an accuracy rate of 67% [7] - Recent news includes a quarterly common stock dividend declaration of $0.8275 per share on Sept. 22 [7] Group 2: Portland General Electric Co (NYSE:POR) - Dividend Yield: 4.67% [7] - Barclays analyst Nicholas Campanella maintained an Equal-Weight rating and raised the price target from $43 to $47 on Oct. 21, 2025, with an accuracy rate of 70% [7] - JP Morgan analyst Richard Sunderland maintained a Neutral rating and cut the price target from $46 to $45 on May 19, 2025, with an accuracy rate of 66% [7] - Recent news includes an upcoming analyst conference call on Oct. 31 to review third quarter financial results [7] Group 3: Eversource Energy (NYSE:ES) - Dividend Yield: 4.11% [7] - B of A Securities analyst Ross Fowler upgraded the stock from Neutral to Buy and raised the price target from $73 to $85 on Oct. 21, 2025, with an accuracy rate of 68% [7] - Janney Montgomery analyst Michael Gaugler downgraded the stock from Buy to Neutral on Oct. 13, 2025, with an accuracy rate of 70% [7] - Recent news includes an earnings conference call scheduled for Nov. 5 to discuss financial performance and updates through the third quarter [7]

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Core Viewpoint - Edison International (EIX) is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on October 28, with expected earnings of $1.19 per share, reflecting a year-over-year decrease of 21.2% [3]. Revenues are projected to be $5.2 billion, showing no change from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.65% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.14%, suggesting a bearish outlook on earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with a positive ESP being a strong predictor of an earnings beat [9][10]. Edison International's current Zacks Rank is 2, which complicates the prediction of an earnings beat despite the negative ESP [12]. Historical Performance - In the last reported quarter, Edison International had an earnings surprise of +10.23%, beating the expected earnings of $0.88 per share by delivering $0.97 [13]. Over the last four quarters, the company has surpassed consensus EPS estimates three times [14]. Industry Comparison - PG&E (PCG), a competitor in the electric power industry, is expected to report earnings of $0.46 per share, representing a year-over-year increase of 24.3%, with revenues projected at $6.62 billion, up 11.4% from the previous year [18][19]. PG&E's consensus EPS estimate has been revised 5.2% lower, but a higher Most Accurate Estimate results in a positive Earnings ESP of +1.45%, indicating a likely earnings beat [19].

Core Insights - Edison International (EIX) has a market capitalization of $21.8 billion and is a major electric utility holding company providing clean energy through its subsidiaries [1] - The company is expected to report fiscal Q3 2025 results on October 28, with analysts predicting an adjusted EPS of $1.19, a decrease of 21.2% from the previous year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $6.08, reflecting a 23.3% increase from $4.93 in fiscal 2024 [3] Stock Performance - EIX stock has declined by 33.4% over the past 52 weeks, underperforming the S&P 500 Index, which gained 13.3%, and the Utilities Select Sector SPDR Fund, which increased by 12.2% [4] - Following the Q2 2025 results, EIX shares rose by 1.9% as the adjusted EPS of $0.97 and revenue of $4.54 billion exceeded forecasts, despite a profit decline [5] Investment and Risk Management - The company plans to invest $6.2 billion in wildfire prevention and has initiated a compensation program, indicating proactive risk management strategies [6] - Analysts maintain a cautiously optimistic consensus rating on EIX stock, with an overall "Moderate Buy" rating; the average price target is $65.97, suggesting a potential upside of 16.7% [7]

Edison International (NYSE:EIX) is included among the 10 Best Beaten Down Dividend Stocks to Buy Right Now. Edison International (EIX) Faces Wildfire Challenges but Retains Long-Term Appeal Image by Steve Buissinne from Pixabay Edison International (NYSE:EIX) is among the beaten-down dividend stocks to invest in. The stock has declined by over 29% since the start of 2025. Edison International (NYSE:EIX), bas⁠ed in California,​ operates as an energy holding company that provid⁠es clean and reliable⁠ ele ...