Edison International (EIX): Today's Featured Utilities Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Edison International ( EIX) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.1%. By the end of trading, Edison International rose 55 cents (1.1%) to $50.72 on average volume. Throughout the day, 2.8 million shares of Edison International exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $50.08-$50.74 after having opened the day at $50.29 as compared to the previous trading day's close of $50.17. Other companies within the Utilities sector that increased today were: Calpine ( CPN), up 2.5%, Southcross Energy Partners ( SXE), up 2.5%, Summit Midstream Partners ( SMLP), up 2.4%, and Otter Tail Corporation ( OTTR), up 1.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. It operates in two segments, Electric Utility and Competitive Power Generation. Edison International has a market cap of $16.35 billion and is part of the utilities industry. The company has a P/E ratio of 11, below the S&P 500 P/E ratio of 17.7. Shares are up 11% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Edison International a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Edison International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, increase in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, China Hydroelectric Corporation ( CHC), down 4.5%, Atlantic Power Corporation ( AT), down 3%, Fuelcell Energy ( FCEL), down 2.8%, and Pure Cycle Corporation ( PCYO), down 2.7%, were all laggards within the utilities sector with Dynegy ( DYN) being today's utilities sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

25 Stocks That Could Have a Terrible Start to 2018

25 Stocks That Could Have a Terrible Start to 2018

Cara Therapeutics, Thomson Reuters, Wynn Resorts: 'Mad Money' Lightning Round

Cara Therapeutics, Thomson Reuters, Wynn Resorts: 'Mad Money' Lightning Round

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

Wells Fargo Board Adds Three New Members In Latest Phase of Shakeup

Wells Fargo Board Adds Three New Members In Latest Phase of Shakeup

Green Energy Is Threatening to Cripple Many Utilities

Green Energy Is Threatening to Cripple Many Utilities