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We recently published a list of 10 Oversold Stocks to Buy in 2025 Amid Inflation Fears. In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against other oversold stocks to buy in 2025 amid inflation fears.
The stock market continues to face significant volatility, with major indices continuing their decline from last week. The S&P 500 is down nearly 2%, while the Nasdaq is equally struggling at over 2.5% in the red.
The implementation of new tariffs had already spooked the market. However, it was dealt an additional blow as the core Personal Consumption Expenditures index reading came in hotter than expected. Inflation and recession concerns are dominating the market, but this also presents an opportunity for outperformance.
Stocks that are oversold as a result of the current dip present a great opportunity for outperformance in 2025. We decided to come up with a list of such stocks.
To ensure that these stocks were suitable for a bear market, were it to persist, we also added an additional criterion of a strong dividend yield so that investors can accumulate dividends while they wait for a market turnaround. For this list, we only considered stocks with a market cap of at least $2 billion that are down considerably since the start of the year.
A large coal mining complex on a sunny day, with heavy machinery moving vast amounts of earth.
Edison International (NYSE:EIX)
Edison International (NYSE:EIX) is an electric power generator and distributor company. It delivers electricity to approximately 50,000 square miles of area through its electrical infrastructure. The company serves public authorities, commercial, residential, industrial, agricultural, and other sectors. The stock is following a downward trend, declining by 27% this year.
Edison International (NYSE:EIX) is struggling because of the aftermath of the Los Angeles Wildfires, with investigations underway to determine if the company’s equipment was responsible for starting the fires. Earlier this month, the company was sued by Los Angeles County, but it could take months before the company’s role in the wildfires can be determined and the lawsuits settled.
On the earnings front, things are healthy. Last month’s earnings report showed an EPS of $4.93 for the previous year, comfortably above the midpoint of its guidance. According to the CEO Pedro Pizarro, the firm is on track to register an EPS annual growth rate of 5% – 7% till 2028.
Overall, EIX ranks 2nd on our list of oversold stocks to buy in 2025 amid inflation fears. While we acknowledge the potential of EIX as a leading 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.