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Is Edison International (EIX) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Edison International (EIX - Free Report) . EIX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.09 right now. For comparison, its industry sports an average P/E of 15.45. Over the last 12 months, EIX's Forward P/E has been as high as 16.17 and as low as 7.94, with a median of 9.49.
We also note that EIX holds a PEG ratio of 1.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EIX's PEG compares to its industry's average PEG of 1.87. Within the past year, EIX's PEG has been as high as 1.91 and as low as 1.02, with a median of 1.29.
Investors should also recognize that EIX has a P/B ratio of 1.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.71. Over the past year, EIX's P/B has been as high as 2.08 and as low as 1.08, with a median of 1.30.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EIX has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.48.
Another great Utility - Electric Power stock you could consider is PG&E (PCG - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of PG&E are currently trading at a forward earnings multiple of 9.36 and a PEG ratio of 1.05 compared to its industry's P/E and PEG ratios of 15.45 and 1.87, respectively.
PCG's price-to-earnings ratio has been as high as 14.79 and as low as 8.28, with a median of 10.97, while its PEG ratio has been as high as 1.54 and as low as 0.88, with a median of 1.13, all within the past year.
PG&E also has a P/B ratio of 1.34 compared to its industry's price-to-book ratio of 2.71. Over the past year, its P/B ratio has been as high as 2.09, as low as 1.16, with a median of 1.54.
These are just a handful of the figures considered in Edison International and PG&E's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EIX and PCG is an impressive value stock right now.
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Is Edison International (EIX) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Edison International (EIX - Free Report) . EIX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.09 right now. For comparison, its industry sports an average P/E of 15.45. Over the last 12 months, EIX's Forward P/E has been as high as 16.17 and as low as 7.94, with a median of 9.49.
We also note that EIX holds a PEG ratio of 1.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EIX's PEG compares to its industry's average PEG of 1.87. Within the past year, EIX's PEG has been as high as 1.91 and as low as 1.02, with a median of 1.29.
Investors should also recognize that EIX has a P/B ratio of 1.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.71. Over the past year, EIX's P/B has been as high as 2.08 and as low as 1.08, with a median of 1.30.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EIX has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.48.
Another great Utility - Electric Power stock you could consider is PG&E (PCG - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Shares of PG&E are currently trading at a forward earnings multiple of 9.36 and a PEG ratio of 1.05 compared to its industry's P/E and PEG ratios of 15.45 and 1.87, respectively.
PCG's price-to-earnings ratio has been as high as 14.79 and as low as 8.28, with a median of 10.97, while its PEG ratio has been as high as 1.54 and as low as 0.88, with a median of 1.13, all within the past year.
PG&E also has a P/B ratio of 1.34 compared to its industry's price-to-book ratio of 2.71. Over the past year, its P/B ratio has been as high as 2.09, as low as 1.16, with a median of 1.54.
These are just a handful of the figures considered in Edison International and PG&E's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EIX and PCG is an impressive value stock right now.