Stock Pulse
Southern California Edison (SCE), a subsidiary of Edison International (EIX), announced a $860M-$925M plan to rebuild and modernize its electric distribution infrastructure to improve reliability and reduce wildfire risks [1]. This comes as EIX faces investigations into its potential role in wildfires and related lawsuits, which have contributed to a 27% stock decline this year [10]. Despite this, EIX shows strong earnings, exceeding projections, and is projected to have 5-7% annual EPS growth until 2028 [10]. Several analyses highlight EIX as an undervalued stock with attractive valuation metrics like a low P/E ratio and a Zacks Rank of #2 (Buy) [5], [6], [9]. While shareholder activism regarding executive compensation and broader market downturns pose challenges [4], the company's projected 2.2% sales growth in 2025 and strong value characteristics offer potential upside [2], [3]. The infrastructure investment, though costly, aims to improve long-term community resilience and mitigate future risks [1].