Edison International (EIX) - Monthly Stock Report for December 2025

Company Overview

Edison International (NYSE: EIX), headquartered in Rosemead, California, is a major player in the Utilities sector, particularly within the Regulated Electric industry. Founded in 1886, the company is responsible for the generation and distribution of electric power across a vast area of approximately 50,000 square miles in Southern California. With a clientele that spans residential, commercial, industrial, public authorities, and agricultural sectors, Edison International boasts a robust distribution network that includes 13,000 circuit-miles of high-voltage lines, 80 transmission substations, 32,000 circuit-miles of underground lines, and around 730 distribution substations.

Despite its historic legacy and significant regional presence, Edison International operates under stringent regulatory guidelines that characterize the electric utilities industry. With total revenue approximating $18.09 billion, the company demonstrates a solid financial footing, and it is currently a recommended "buy" based on promising market conditions and potential upside.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The stock's performance over the past 52 weeks describes a predominantly bearish trend, characterized by a decline from highs near $83.05 to the present level around $56.86, marking a substantial decrease of roughly 25.44%. Investors should take note of critical price action:

• Current Price: $56.86
• 52-Week High: $83.05
• 52-Week Low: $47.73

The stock has faced a persistent downward trend with lower highs and lower lows throughout the year. However, recent trading activity indicates a consolidation phase, with price oscillating in a range between $55 and $60.

Key Technical Levels

Support Levels:

• Strong Support: Around $50, tested multiple times.

Resistance Levels:

• Psychological Resistance: Near $60, indicating a barrier the stock struggles to surpass.
• The 50-day moving average currently at $56.72 frequently acts as dynamic resistance, but the recent convergence of the stock price with this moving average indicates a potential shift in momentum.

Although there have been efforts to breach the downward sloping trendline acting as resistance since October, investors should remain cautious. Assuming the stock price can hold above the trendline and the moving average, the outlook could shift towards a more neutral or bullish trend.

Financial Performance and Metrics

Edison International has demonstrated strong financial performance, exhibiting key metrics that detail its stable revenue generation and profitability:

• Total Revenue: $18.09 billion
• EBITDA: $7.31 billion
• Total Shares Outstanding: 384,787,056
• Shares Short: 8,715,542 (approximately 2.6% of the float)

The company maintains a relatively low level of short-selling activity, suggesting cautious optimism among investors regarding its stock performance. Currently, the stock trades at $56.86, with bullish analyst forecasts projecting a target high price of $86.00.

Valuation Ratios:

• Target High Price: $86.00
• Mean Target Price: $67.00
• Target Low Price: $55.00
• Current Price: $56.86

These metrics not only reveal a potential for appreciation but also highlight a favorable valuation in comparison to historical performance.

Recent News and Developments

Edison International has faced several challenges recently, notably due to wildfires in Southern California. The company's subsidiary, Southern California Edison (SCE), is under investigation concerning its potential involvement in the Eaton Fire, which has inflicted considerable property damage. Preliminary analyses indicate no equipment anomalies; however, SCE has received preservation notices from insurance companies, leading to concerns over potential liabilities. As a consequence, EIX's stock price has plummeted by 10%, resulting in a 26% drop over the past five days.

In response to these challenges, Edison International announced cash tender offers on November 20, 2025, to purchase its 5.00% and 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stocks. This strategic move is aimed at strengthening its financial position, with offers expiring on December 19, 2025.

Market Sentiment and Analyst Recommendations

The market sentiment surrounding Edison International reflects cautious optimism, despite the recent challenges. Analyst sentiment has been relatively balanced:

• Average Price Target (Jefferies): $69.56, suggesting an upside of approximately 19.72% from the current price.
• Analyst Consensus: "Buy" with an average recommendation of 2.06, from 14 evaluated opinions.

This consensus signifies confidence in Edison International's stock, projecting a positive outlook for potential investors considering new positions.

However, ongoing wildfire investigations may impact future assessments, and investors should monitor these developments closely.

Conclusion

Edison International finds itself navigating a complex landscape characterized by both opportunities and risks. Given its solid financial foundation and strategic positioning within a critical sector, the stock appears poised for potential growth. With a current price of $56.86 and bullish projections from analysts, investors may find this an attractive entry point. However, the realities of ongoing investigations and regulatory pressures necessitate vigilance and caution.

In summary, while there are risks associated with Edison International due to recent incidents, the underlying strength of its business model, fundamentals, and growth potential offers promising opportunities for savvy investors in the Utilities sector.