Trade-Ideas LLC identified

Edison International

(

EIX

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Edison International as such a stock due to the following factors:

  • EIX has 10x the normal benchmarked social activity for this time of the day compared to its average of 0.81 mentions/day.
  • EIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $157.2 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on EIX:

Edison International, through its subsidiaries, generates and supplies electricity. The company generates electricity through hydroelectric, diesel, natural gas, nuclear, and photovoltaic sources. The stock currently has a dividend yield of 3.2%. EIX has a PE ratio of 14. Currently there are 6 analysts that rate Edison International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Edison International has been 2.4 million shares per day over the past 30 days. Edison International has a market cap of $19.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.31 and a short float of 1% with 1.21 days to cover. Shares are up 1.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Edison International as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.26 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, EDISON INTERNATIONAL has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • EIX, with its decline in revenue, underperformed when compared the industry average of 0.5%. Since the same quarter one year prior, revenues fell by 13.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • EDISON INTERNATIONAL's earnings per share declined by 23.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, EDISON INTERNATIONAL increased its bottom line by earning $4.34 versus $2.67 in the prior year. For the next year, the market is expecting a contraction of 12.4% in earnings ($3.80 versus $4.34).
  • The gross profit margin for EDISON INTERNATIONAL is currently lower than what is desirable, coming in at 29.66%. Regardless of EIX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.93% trails the industry average.

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