Edison International Outlook - Bearish Signals and Mixed Analyst Sentiment

Market Snapshot

Edison International (EIX) is showing signs of weakness according to our internal diagnostic score of 2.37 out of 10. With three bearish technical indicators and no bullish ones, the technical outlook is highly bearish, and the market is advised to avoid the stock at this time.

News Highlights

Recent news has touched on broader U.S. policy changes and global economic shifts, which may indirectly impact Edison International:

• U.S. vaccine policy changes could affect public health infrastructure and investment priorities. While not directly related to Edison, such shifts might influence regulatory and budgetary trends in energy and infrastructure.
• Trump's fast-tracking of uranium mines in Utah highlights a potential revival of the mining sector, but it's unclear how this affects Edison, which operates primarily in electric power utilities.
• China’s factory activity contraction slowed in May, signaling some stabilization. This could be a positive for global demand for energy, yet for Edison, it may not immediately translate into increased business unless broader power demand in China rebounds significantly.

Analyst Views & Fundamentals

Analysts and fundamental factors tell a mixed story:

• Simple average rating: 5.00 out of 10 – a neutral stance.
• Weighted rating score: 2.01 out of 10 – more bearish, as historical performance of the involved analysts is weak (25.0% win rate, average return -3.50%).
• Analyst consistency: Low – ratings are mismatched with current price trends, which are up by 0.12% despite the single "Strong Buy" rating from UBS.
• Fundamental factors (values and model scores):

Key Fundamental Indicators

• Revenue to Market Value (Revenue-MV): 0.9985 – Internal diagnostic score: 3.00
• Price-to-Cash Flow (PCF): 20.70 – Internal diagnostic score: 0.00
• Price-to-Sales (PS): 4.02 – Internal diagnostic score: 3.00
• Basic Earnings per Share (YoY growth rate %): 316.22% – Internal diagnostic score: 2.00
• Income tax / Total profit (%): 18.67% – Internal diagnostic score: 3.00
• Long-term debt to working capital ratio (%): 7.09% – Internal diagnostic score: 0.00
• Cash-UP (Cash flow coverage): -0.23 – Internal diagnostic score: 1.00
• Diluted earnings per share (YoY growth rate %): 315.32% – Internal diagnostic score: 2.00
• Total assets turnover ratio: 9.58% – Internal diagnostic score: 0.00
• Current assets / Total assets (%): 7.83% – Internal diagnostic score: 2.00

Money-Flow Trends

Big money is showing interest in EIX, with a positive overall money-flow score of 7.86 out of 10. This is reflected in inflow ratios across all sizes, with the largest inflow ratio from "extra-large" investors at 52.34%. The stock is attracting attention from both institutional and retail investors, with inflows across small, medium, large, and extra-large categories.

Big-money inflow ratio: 51.79%

Retail inflow ratio: 50.75%

This suggests a growing interest, though the technical indicators still paint a bearish picture. The fundamental story is mixed, with strong earnings growth but weak liquidity metrics.

Key Technical Signals

The recent technical indicators for EIX are mostly bearish, with the following scores and dates:

• WR Oversold: Internal diagnostic score: 1.00 – Signal date: 2025-09-08
• Bearish Engulfing: Internal diagnostic score: 1.33 – Signal date: 2025-09-03
• MACD Death Cross: Internal diagnostic score: 1.00 – Signal date: 2025-08-21
• Marubozu White: Internal diagnostic score: 6.16 – Signal date: 2025-08-29

These signals suggest a weak trend with a lack of strong momentum. The market is currently calm, and the risk of a decline remains high.

Conclusion

Despite a positive money-flow trend and some strong earnings growth, Edison International’s technical outlook is bearish. The internal diagnostic score of 2.37 out of 10 indicates that investors should exercise caution and possibly consider waiting for a clearer trend or stronger signals before making a move. Keep an eye on the fundamentals and technicals in the coming weeks.