12 Best S&P 500 Stocks to Invest in According to Analysts

6. Edison International (NYSE:EIX)

Average Share Price Upside Potential as of January 31: 53.48%

Market Cap: $20.91 billion

Edison International (NYSE:EIX) is a California-based public utility holding company that engages in the generation and distribution of electric power to approximately 15 million people in the state.

As of the close of the day on January 23, the company’s shares have declined by 24% due to the adverse impact of the LA wildfires. Current estimates project the blaze is set to cause severe financial damages to Edison International (NYSE:EIX) as it is losing out on revenue by not being able to supply electricity in the destructive areas.

Edison International (NYSE:EIX) is also facing legal repercussions from the ongoing crisis. Its subsidiary, Southern California Edison, has been hit with multiple lawsuits claiming that its equipment caused one of the major wildfires that struck the Los Angeles area. According to the lawsuit, the company was unable to manage its electrical equipment properly, resulting in damage to private property.

Despite ongoing challenges, analysts believe EIX’s stock valuation is attractive, with the share price expected to bounce back once the headwinds are over. Wall Street analysts have a consensus Buy rating for the stock, with an average share price upside potential of over 53%, making it one of the best large-cap stocks to invest in according to analysts. On January 23, Barclays analyst, Nicholas Campanella, cut Edison International’s (NYSE:EIX) price target from $76 to $67, while maintaining the Buy rating.

Edison International (NYSE:EIX) is also a generous dividend payer. On December 12, the company declared a 6.1% hike in its quarterly dividend to $0.8275 per share, which has stretched its dividend-paying growth streak to 21 years. It was recently named on Insider Monkey’s list of the 10 Best January Dividend Stocks To Buy.