Edison International (EIX) Fell by Almost 10% This Week. Here's Why.
The share price of Edison International (NYSE:EIX) fell by 9.93% between June 3 and June 10, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development.
A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.
Edison International (NYSE:EIX) is one of the largest electric utility holding companies in America, focused on providing clean and reliable energy and energy services through its independent companies.
Edison International (NYSE:EIX) recently crashed to a 5-year low after analysts at Wolfe Research downgraded the stock to Peer Perform from Outperform, citing the risk from ongoing litigation related the Eaton fire in California earlier this year, the lack of clarity around the new California Assembly bill 1054, and pending rate case issues. Moreover, there have also been reports that the company's subsidiary, Southern California Edison, has underestimated the potential size of the wildfire incident by a factor of ten.
Impax Asset Management stated the following regarding Edison International (NYSE:EIX) in its Q1 2025 investor letter:
'Edison International (NYSE:EIX) (Utilities) is an electric utility that generates a substantial portion of its power via renewable sources and has a strong systematic ESG risk profile. The stock has struggled in the aftermath of the California wildfires, as one of the powerlines tied to the Eaton fire comes under Edison's jurisdiction. While liabilities are capped and the long-term story is intact, volatility is likely to continue.'
While we acknowledge the potential of EIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Cheap Energy Stocks to Buy Now and
Disclosure: None.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
M1 Kliniken's (ETR:M12) Performance Is Even Better Than Its Earnings Suggest
M1 Kliniken AG (ETR:M12) recently posted some strong earnings, and the market responded positively. We did some digging and found some further encouraging factors that investors will like. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Over the twelve months to December 2024, M1 Kliniken recorded an accrual ratio of -0.11. That indicates that its free cash flow was a fair bit more than its statutory profit. To wit, it produced free cash flow of €30m during the period, dwarfing its reported profit of €16.0m. M1 Kliniken's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, M1 Kliniken has perfectly satisfactory free cash flow relative to profit. Because of this, we think M1 Kliniken's earnings potential is at least as good as it seems, and maybe even better! Better yet, its EPS are growing strongly, which is nice to see. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you want to do dive deeper into M1 Kliniken, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of M1 Kliniken. Today we've zoomed in on a single data point to better understand the nature of M1 Kliniken's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
31 minutes ago
- Wall Street Journal
Chinese AI Companies Dodge U.S. Chip Curbs by Flying Suitcases of Hard Drives Abroad
KUALA LUMPUR, Malaysia—In early March, four Chinese engineers flew to Malaysia from Beijing, each carrying a suitcase packed with 15 hard drives. The drives contained 80 terabytes of spreadsheets, images and video clips for training an artificial-intelligence model. At a Malaysian data center, the engineers' employer had rented about 300 servers containing advanced Nvidia chips. The engineers fed the data into the servers, planning to build the AI model and bring it back home.
Yahoo
36 minutes ago
- Yahoo
Palantir Technologies (PLTR) to Power Fedrigoni's Digital Makeover with AI Solutions
Palantir Technologies Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Palantir Technologies Inc. (NASDAQ:PLTR) announced that it has entered into a multi-year partnership with Fedrigoni, an Italian manufacturer of specialty papers for packaging and other applications. The partnership will allow Fedrigoni to leverage Palantir's advanced AI capabilities and innovative solutions to accelerate its digital and operational transformation. Palantir's innovative solutions and cutting-edge AI technology will not only be limited to Fedrigni's stock optimization and demand forecasting, but will expand to support its entire digital transformation objectives. This will allow the paper manufacturer to improve its responsiveness to market dynamics and its ability to anticipate and meet customer demands. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. Palantir's Managing Director for Palantir France and EMEA Executive, François Bohuon, expressed enthusiasm for the partnership: 'We are excited to collaborate with Fedrigoni on their digital transformation journey. This partnership highlights the transformative potential of AI in traditional industries, and we are honored to support Fedrigoni in achieving their strategic vision.' While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
