Is Edison International Stock Outperforming the S&P 500?

Valued at a market cap of $21.6 billion, Edison International (EIX) is a public utility holding company based in Rosemead, California. It generates, transmits, and distributes electric power, with a growing emphasis on integrating renewable energy, modernizing the grid, and facilitating a clean energy transition. 

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and EIX fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated electric industry. By combining scale, regulatory support, and expertise in clean energy transition, the company positions itself as a reliable utility provider while also driving innovation toward a more sustainable and resilient energy future. 

This utility company is currently trading 36.6% below its 52-week high of $88.65, reached on Nov. 27, 2024. Shares of EIX have soared 16.9% over the past three months, outperforming the S&P 500 Index’s ($SPX) 8.9% return during the same time frame.

However, in the longer term, EIX has declined 33.9% over the past 52 weeks, significantly lagging behind SPX's 17.7% uptick over the same time period. Moreover, on a YTD basis, shares of EIX are down 29.2%, compared to SPX’s 12% surge.

To confirm its recent bullish trend, EIX has been trading above its 50-day moving average since early August, with slight fluctuations. However, it has remained below its 200-day moving average since early January. 

EIX delivered better-than-expected Q2 results on Jul. 31, prompting its shares to surge 1.9% in the following trading session. The company reported operating revenue of $4.5 billion, up 4.8% from the same period last year and 8.4% ahead of analyst expectations. Moreover, while its core EPS of $0.97 declined 21.1% year-over-year, it topped the consensus estimates by a notable margin of 10.2%. 

EIX has underperformed its rival, PG&E Corporation (PCG), which declined 20.8% over the past 52 weeks and 22.5% on a YTD basis. 

Looking at EIX’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $66.53 suggests an 18.4% potential upside from its current price levels.