Edison International (NYSE: 
EIX) finds itself in a compelling position heading into the next wave of energy demand — and the decline in its stock price amid wildfire concerns may present a window of opportunity.
Why it’s discounted
The company’s subsidiary Southern California Edison (SCE) pulls power for roughly 15 million customers across California and has faced elevated wildfire risk, including the major January 2025 fires around Los Angeles. These events brought increased scrutiny, higher operating costs and legal exposure.
Why it’s potentially undervalued
Despite these headwinds, Edison has a resilient regulatory and operating foundation. Its 2024 annual report shows core earnings rising and a strong rate-base growth outlook.
Analysts at Seeking Alpha argue that the market may be overestimating the wildfire liability risk and underestimating Edison’s stable earnings power. PG&E was found culpable within a month of the wildfires that lead to its bankruptcy, but 11 months later Edison still has not been found culpable for the 2025 LA fires.
Technicals
The wildfire scare resulted in a wicked drawdown. That seems to have found a bottom, and latelyEIX shares have demonstrated strength; on top of that strength sits a healthy dividend. If current resistance is taken out, and an unseasonably moist California holds wildfire fears at bay, thirsty AI data centers may push EIX shares into the lower $70s.
EIX) finds itself in a compelling position heading into the next wave of energy demand — and the decline in its stock price amid wildfire concerns may present a window of opportunity.Why it’s discounted
The company’s subsidiary Southern California Edison (SCE) pulls power for roughly 15 million customers across California and has faced elevated wildfire risk, including the major January 2025 fires around Los Angeles. These events brought increased scrutiny, higher operating costs and legal exposure.
Why it’s potentially undervalued
Despite these headwinds, Edison has a resilient regulatory and operating foundation. Its 2024 annual report shows core earnings rising and a strong rate-base growth outlook.
Analysts at Seeking Alpha argue that the market may be overestimating the wildfire liability risk and underestimating Edison’s stable earnings power. PG&E was found culpable within a month of the wildfires that lead to its bankruptcy, but 11 months later Edison still has not been found culpable for the 2025 LA fires.
Technicals
The wildfire scare resulted in a wicked drawdown. That seems to have found a bottom, and lately
EIX shares have demonstrated strength; on top of that strength sits a healthy dividend. If current resistance is taken out, and an unseasonably moist California holds wildfire fears at bay, thirsty AI data centers may push EIX shares into the lower $70s.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.