Edison International (EIX) as a Top Growth Stock for 2026 and Beyond: Strategic Infrastructure and Earnings Momentum Drive Long-Term Appeal

In an era of accelerating clean energy transitions and grid modernization, Edison International (EIX) emerges as a compelling growth stock for 2026 and beyond. With a strategic focus on infrastructure investment, robust earnings momentum, and a strong balance sheet, EIX is well-positioned to capitalize on long-term industry tailwinds. This analysis examines why EIX deserves a place in growth-focused portfolios, supported by its favorable Zacks Rank, high VGM Score, and outperformance against peers.

Zacks Rank and VGM Score: A Strong Foundation for Growth

Edison International currently holds a Zacks Rank of #2 (Buy) according to recent assessments, reflecting positive earnings estimate revisions and strong investor confidence. This upgrade from a #3 (Hold) rating in earlier reports underscores improved market sentiment. Complementing this, EIX's VGM Score of A highlights its exceptional combination of value, growth, and momentum characteristics. Specifically, its Growth Style Score of A signals a projected 23.7% year-over-year earnings increase, while its Momentum Style Score of A indicates a favorable upward trajectory in both stock price and earnings estimates. These metrics collectively position EIX as a stock with both immediate and sustained growth potential.

Strategic Infrastructure Investment: Fueling Long-Term Earnings Growth

At the core of EIX's growth strategy is a $28–$29 billion capital expenditure plan for 2025–2028 prioritizing infrastructure upgrades. This ambitious roadmap prioritizes infrastructure upgrades, electrification, and grid resiliency, with over 85% of funds allocated to distribution grid improvements and wildfire mitigation according to filings. Such investments align with regulatory mandates and the rising demand for reliable clean energy infrastructure, particularly in high-risk areas like Southern California.

The capital plan is underpinned by a 7–8% compound annual rate base growth projection driven by electrification, housing development, and industrial expansion. Notably, EIX has reaffirmed its 5–7% core earnings per share (EPS) growth target for 2025–2028 supported by a narrowed guidance range of $5.95–$6.20 according to SEC filings. This disciplined approach, coupled with no annual equity needs during the period according to financial reports, demonstrates the company's financial strength and ability to fund growth organically.

Earnings Momentum and Financial Health: Outperforming Peers

EIX's earnings momentum is further reinforced by its superior return on equity (ROE) of 13.62% in the current fiscal year significantly outpacing the industry average of ~9.95% and Eversource Energy's 9.78% according to financial analysis. This efficiency in capital utilization reflects strong operational execution and regulatory support. Additionally, EIX's dividend yield of 4.3% in 2025 matches that of Eversource, offering investors a compelling combination of income and growth.

The company's Q3 2025 results underscore its momentum, with core earnings per share rising to $2.34 from $1.51 in the same period last year according to SEC filings. This growth was driven by a true-up from the 2025 general rate case, which authorized $9.7 billion in base revenue according to financial disclosures. Such regulatory tailwinds, combined with a debt structure of $38.4 billion (primarily $32.7 billion in first mortgage bonds), highlight EIX's balanced approach to capital allocation and risk management.

Clean Energy Demand and Grid Resiliency: A Tailwind for Growth

The global shift toward decarbonization and electrification is a critical catalyst for EIX. Its capital plan explicitly targets grid modernization and wildfire mitigation according to filings, addressing both regulatory and environmental challenges. For instance, Southern California Edison (SCE), EIX's primary subsidiary, is expanding transmission and distribution investments to meet rising clean energy demand according to industry analysis. This aligns with broader trends, including the U.S. government's emphasis on grid resilience and renewable integration, which are expected to drive sustained revenue growth.

Conclusion: A Compelling Case for Growth Investors

Edison International's strategic infrastructure investments, strong earnings momentum, and superior financial metrics make it a standout growth stock for 2026 and beyond. With a Zacks Rank of #2 (Buy), a VGM Score of A, and a capital plan that positions it to benefit from the clean energy transition, EIX offers a rare combination of near-term performance and long-term potential. For growth-focused investors seeking exposure to a utility with disciplined execution and regulatory tailwinds, EIX represents a compelling opportunity.