Should Value Investors Buy Edison International (EIX) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.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.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company to watch right now is Edison International (EIX). EIX is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.09, while its industry has an average P/E of 15.48. Over the past year, 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 should also note that EIX holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EIX's industry currently sports an average PEG of 1.76. Over the past 52 weeks, 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 ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. EIX's current P/B looks attractive when compared to its industry's average P/B of 2.19. 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.22. This compares to its industry's average P/S of 2.63.These figures are just a handful of the metrics value investors tend to look at, but they help show that Edison International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EIX feels like a great value stock at the moment.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edison International (EIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks