Stock Analysis | Edison International Outlook - Bearish Signals Dominate Amid Mixed Fundamentals

Market Snapshot

Headline: Edison International (EIX) faces a weak technical outlook with no bullish signals and three bearish indicators.

Stance: Given the current internal diagnostic score of 2.16/10, the technical side is weak, and it is suggested to avoid it.

News Highlights

Recent news highlights include:

• Michigan partners with utilities for clean energy investment – A $3.5B investment is expected to flow to local suppliers, which may indirectly support energy infrastructure stocks.
• Corvus Energy to supply energy storage systems for BC Ferries – This indicates growing momentum in the electric vehicle and energy storage sectors, potentially influencing Edison’s long-term strategic direction.
• Government considers gasoline levy to boost EV adoption – Policy shifts in favor of electric vehicles may reshape energy consumption patterns, affecting Edison’s traditional business lines over time.

Analyst Views & Fundamentals

Analysts remain mixed on Edison International. The simple average rating stands at 4.00, while the performance-weighted rating is higher at 6.71. The disparity suggests some divergence in analyst expectations.

The current price trend shows a decline of -0.99%, indicating a mismatch between the optimistic market expectations and the actual stock movement.

Key fundamental values and their internal diagnostic scores (0-10):

• Revenue-to-Market Value (Revenue-MV): 3.00% → score: 6.48
• Price-to-Cash Flow (PCF): 20.70 → score: 2.00
• Price-to-Sales (PS): 4.02 → score: 6.48
• Gross Profit Margin (GPM): 39.75% → score: 6.48
• Price-to-Earnings (PE): 45.88 → score: 4.00
• Non-current assets / Total assets: 92.17% → score: 4.00
• Gross Margin (GMAR): 39.75% → score: 6.48
• Long-term debt to working capital: 7.02% → score: 5.00
• Cost of sales ratio: 41.44% → score: 4.00
• Current assets / Total assets: 7.83% → score: 4.00

Money-Flow Trends

Big money continues to move in Edison’s favor, with overall inflow ratio at 50.66%. Specifically:

• Small money flow trend: positive (51.07% inflow)
• Medium money flow trend: positive (51.00% inflow)
• Large money flow trend: negative (49.67% outflow)
• Extra-large money flow trend: positive (50.84% inflow)

The fund flow score of 7.9/10 indicates generally positive sentiment among large investors, despite recent declines in the stock price.

Key Technical Signals

Edison’s technical indicators remain bearish, with no bullish signals in the last five days. Below are the internal diagnostic scores (0-10) for key indicators:

• WR Overbought: 1.00 – Signal is biased bearish with historical average return of -0.67% and a win rate of 37.29%.
• MACD Death Cross: 1.00 – Strong bearish signal, historically averaging -1.89% returns with a 30.0% win rate.
• Bearish Engulfing: 1.34 – Another bearish reversal pattern with a historical win rate of 38.89% and average return of -0.78%.
• Marubozu White: 5.30 – Neutral to slightly bullish signal, though it’s rare and not a strong indicator on its own.

Recent technical patterns by date:

• 2025-08-04 – MACD Death Cross
• 2025-08-14 – WR Overbought
• 2025-08-15 – Bearish Engulfing
• 2025-08-19 – WR Overbought
• 2025-08-21 – MACD Death Cross
• 2025-08-29 – Marubozu White

Overall, the trend is weak, and the key insights highlight a lack of bullish momentum with three bearish signals versus zero bullish ones.

Conclusion

While Edison International has seen positive money flows and some encouraging fundamental values, the technical outlook remains bearish with no clear signs of reversal. Investors are advised to consider waiting for a pull-back before entering a position, and to closely monitor both the earnings report and any changes in analyst sentiment in the coming months. Given the current technical score of 2.16/10, it may be prudent to stay cautious or avoid for now.