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Are Investors Undervaluing Edison International (EIX) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Edison International (EIX - Free Report) . EIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.20 right now. For comparison, its industry sports an average P/E of 14.17. EIX's Forward P/E has been as high as 16.03 and as low as 10.49, with a median of 14.75, all within the past year.
EIX is also sporting a PEG ratio of 2.22. 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 industry has an average PEG of 2.29 right now. Over the last 12 months, EIX's PEG has been as high as 2.82 and as low as 1.77, with a median of 2.57.
Another valuation metric that we should highlight is EIX's P/B ratio of 1.38. The P/B ratio pits a stock's market value against 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 1.55. Within the past 52 weeks, EIX's P/B has been as high as 1.63 and as low as 1.08, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.59. This compares to its industry's average P/S of 1.98.
Finally, our model also underscores that EIX has a P/CF ratio of 7.20. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.19. EIX's P/CF has been as high as 8.52 and as low as 5.62, with a median of 7.78, all within the past year.
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?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Edison International (EIX - Free Report) . EIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.20 right now. For comparison, its industry sports an average P/E of 14.17. EIX's Forward P/E has been as high as 16.03 and as low as 10.49, with a median of 14.75, all within the past year.
EIX is also sporting a PEG ratio of 2.22. 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 industry has an average PEG of 2.29 right now. Over the last 12 months, EIX's PEG has been as high as 2.82 and as low as 1.77, with a median of 2.57.
Another valuation metric that we should highlight is EIX's P/B ratio of 1.38. The P/B ratio pits a stock's market value against 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 1.55. Within the past 52 weeks, EIX's P/B has been as high as 1.63 and as low as 1.08, with a median of 1.48.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.59. This compares to its industry's average P/S of 1.98.
Finally, our model also underscores that EIX has a P/CF ratio of 7.20. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.19. EIX's P/CF has been as high as 8.52 and as low as 5.62, with a median of 7.78, all within the past year.
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.