In This Article:
We recently published an article titled Why These 15 Large-Cap Stocks Are Plunging So Far In 2025. In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against the other large-cap stocks.
The big and large-cap stocks have spearheaded the rally in the past two years, but Wall Street’s expectations have gotten ahead of many of their fundamentals. The Nasdaq briefly entered correction territory as the stock market cooled over the past week due to tariff fears and a perceived slowdown in the growth of AI, which then spilled into the data center industry.
Wall Street is now reassessing the growth premium they are paying for many of these large-cap stocks. A lot of them have tumbled in the past week and have done so in a much more severe way than the broader market.
That said, large companies have staying power, and many of them could now be undervalued.
Methodology
For this article, I screened the worst-performing large-cap stocks ($10 billion to $100 billion) year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.
Edison International (NYSE:EIX)
Number of Hedge Fund Holders In Q4 2024: 38
Edison International (NYSE:EIX) is an electric utility holding company that provides electricity to 15 million people in Southern California through its subsidiary, Southern California Edison.
The stock is down significantly so far in 2025 as the company faces multiple lawsuits alleging its equipment caused devastating wildfires. These fires have resulted in significant fatalities and property losses, with insured damages estimated between $28 billion and $35 billion.
Video evidence has reportedly shown electricity arcing from Edison’s equipment before the fire began. Edison International (NYSE:EIX) itself disclosed that its equipment might have been involved in other fires.
Moreover, it reported adjusted EPS of $1.05 and missed analyst expectations of $1.09.
The consensus price target of $76.54 implies 38.6% upside.
Edison International (NYSE:EIX) stock is down 30.14% year-to-date.