We recently published a list of 10 Stocks That Analysts Think Will Go Up. In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against other stocks that analysts think will go up.
The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.
Edison International (NYSE:EIX)
Edison International (NYSE:EIX) is an electric power generator and distributor. It provides and delivers electricity to public authorities, commercial, residential, agricultural, industrial, and other sectors. It is one of the oldest utility companies in the country, founded in 1886. It was upgraded from Neutral to Buy at UBS, though the price target was subsequently lowered to $65 from $69, still a 27% upside.
A stock that was registering all-time highs just two months ago has now dropped to COVID-19 levels due to the LA wildfires that wreaked havoc in the region. Edison International (NYSE:EIX) has been facing multiple lawsuits, both from citizens residing in the region as well as shareholders. However, according to the analysts, the worst-case scenarios for these lawsuits are already priced in. The company may be held liable for $3.9 billion in damages. Once that dust settles, the stock can quickly rerate to better levels.
EIX has a forward dividend yield of 6.61% and has been paying dividends for 22 years. The analyst upside may be a conservative target if the clarity over wildfire lawsuits comes sooner.
Overall, EIX ranks 4th on our list of stocks that analysts think will go up. While we acknowledge the potential of EIX as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as EIX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.