Why Edison International Stands Out as a Compelling Pick Right Now

Edison International EIX is currently positioned as an attractive investment, driven by surging demand for renewable energy across its operational footprint. The utility giant has been systematically channeling capital into grid modernization and expansion initiatives to accommodate the explosive growth from data center operators. With robust medium-term prospects and an aggressive expansion roadmap, EIX represents a solid opportunity within the Zacks Utility-Electric Power sector. Here’s why this Zacks Rank #2 (Buy) designation makes sense at the moment.

Financial Momentum & Track Record of Beat

Analyst expectations for 2025 have been climbing. The Zacks Consensus Estimate for earnings per share has nudged up 0.33% to $6.10 over the past 60 days. Revenue projections for 2025 sit at $18.46 billion, translating to a 4.90% year-over-year increase from 2024’s actual results. Looking ahead, the company’s three-to-five-year earnings growth trajectory stands at 10.93%. Impressively, EIX has delivered earnings surprises in three of the last four quarters, averaging a positive variance of 7.25%.

Shareholder Rewards Through Consistent Dividends

EIX has maintained a disciplined approach to returning cash to shareholders. The quarterly dividend currently stands at 82.75 cents per share, amounting to an annual payout of $3.31. At 5.76%, the dividend yield substantially outpaces the S&P 500 average of 1.12%, making it particularly attractive for income-focused investors right now.

Strategic Capital Deployment & Infrastructure Buildout

The company’s investment thesis centers on systematic capital allocation toward grid resilience and generation capacity. Southern California Edison reported capex of $5.7 billion during 2024, with planned expenditures of $28-$29 billion spanning 2025-2028. Notably, 97% of this investment is earmarked for transmission, distribution infrastructure, and generation capacity—positioning the utility for long-term reliability and growth.

Operational Efficiency Metrics

EIX’s Return on Equity currently measures 13.62%, exceeding the industry benchmark of 9.95%. This efficiency advantage underscores management’s effectiveness in deploying shareholder capital to generate returns.

Debt Service Capacity

The times interest earned ratio stood at 3.2 as of Q3 2025, demonstrating solid capacity to service debt obligations. This solvency metric confirms that operating earnings comfortably cover interest expenses, reducing financial risk at the moment.

Market Performance Context

Over the trailing three months, EIX shares appreciated 6.9%, though this slightly underperformed the broader utility sector’s 7% gain. Despite this modest lag, the stock’s fundamentals remain compelling.

Peer Comparison in the Sector

Other highly-ranked utilities worth monitoring include Ameren Corporation AEE, FirstEnergy Corp. FE, and American States Water Company AWR—all carrying Zacks Rank #2 status.

AEE projects long-term earnings growth of 8.52%, with 2025 EPS consensus at $4.99 (7.78% year-over-year growth). FE’s long-term growth rate stands at 6.46%, though 2025 EPS guidance of $2.54 implies a 3.42% decline. AWR offers more conservative expansion with 5.65% long-term growth and 2025 EPS expected at $3.32 (4.73% increase).

The investment case for Edison International remains robust, particularly for those seeking exposure to the renewable energy transition and infrastructure modernization themes reshaping the utility landscape.