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

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 lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Edison International fell $0.78 (-1.6%) to $48.70 on average volume. Throughout the day, 3,748,865 shares of Edison International exchanged hands as compared to its average daily volume of 2,505,600 shares. The stock ranged in price between $48.59-$49.43 after having opened the day at $49.43 as compared to the previous trading day's close of $49.48. Other companies within the Utilities sector that declined today were: Fuelcell Energy ( FCEL), down 5.3%, GreenHunter Energy ( GRH), down 4.7%, PVR Partners ( PVR), down 2.8% and Pure Cycle Corporation ( PCYO), down 2.5%.
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Edison International, through its subsidiaries, generates and distributes electric power. It also invests in transportation infrastructure and energy assets, including renewable energy in the Netherlands, Australia, Switzerland, and the United Kingdom. Edison International has a market cap of $16.1 billion and is part of the utilities industry. The company has a P/E ratio of 9.7, below the S&P 500 P/E ratio of 17.7. Shares are up 9.5% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Edison International a buy, 1 analyst rates it a sell, and 5 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 compelling growth in net income, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Just Energy Group ( JE), down 12.8%, Centrais Eletricas Brasileiras ( EBR.B), down 10.9%, Centrais Eletricas Brasileiras ( EBR), down 9.0% and U.S. Geothermal ( HTM), down 5.8%.

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).

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