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Are Investors Undervaluing Edison International (EIX) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Edison International (EIX - Free Report) is a stock many investors are watching right now. EIX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.09, which compares to its industry's average of 15.52. 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.
Investors will also notice that EIX has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EIX's PEG compares to its industry's average PEG of 1.73. Over the last 12 months, EIX's PEG has been as high as 1.91 and as low as 1.02, with a median of 1.29.
Another notable valuation metric for EIX is its 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 company's current P/B looks solid when compared to its industry's average P/B of 2.75. Over the past 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EIX has a P/S ratio of 1.26. This compares to its industry's average P/S of 2.53.
These are just a handful of the figures considered in Edison International'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 is an impressive value stock right now.
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Are Investors Undervaluing Edison International (EIX) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Edison International (EIX - Free Report) is a stock many investors are watching right now. EIX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.09, which compares to its industry's average of 15.52. 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.
Investors will also notice that EIX has a PEG ratio of 1.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EIX's PEG compares to its industry's average PEG of 1.73. Over the last 12 months, EIX's PEG has been as high as 1.91 and as low as 1.02, with a median of 1.29.
Another notable valuation metric for EIX is its 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 company's current P/B looks solid when compared to its industry's average P/B of 2.75. Over the past 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EIX has a P/S ratio of 1.26. This compares to its industry's average P/S of 2.53.
These are just a handful of the figures considered in Edison International'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 is an impressive value stock right now.