Zacks.com Spotlights El Pollo Loco, OppFi, Edison, ScanSource, and Zions Bancorporation
Bargain Stocks Highlighted: The article discusses five stocks with attractive EV-to-EBITDA ratios, including El Pollo Loco Holdings, OppFi Inc., Edison International, ScanSource, Inc., and Zions Bancorporation, which are considered undervalued based on this metric.
EV-to-EBITDA vs. P/E Ratio: EV-to-EBITDA is presented as a superior valuation metric compared to the traditional price-to-earnings (P/E) ratio, as it accounts for a company's total value and is less susceptible to manipulation, making it useful for evaluating firms with negative net earnings.
Growth Projections: Each highlighted stock has promising earnings growth projections for 2025, with OppFi Inc. expected to grow by 65.3%, followed by Edison International at 23.7%, and Zions Bancorporation at 19%.
Investment Tools and Resources: The article promotes Zacks Investment Research's tools, such as the Research Wizard, which helps investors screen stocks and develop investment strategies, emphasizing the importance of combining multiple valuation metrics for better decision-making.
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- Earnings Beat: Edison International reported Q1 EPS of $1.42, exceeding the consensus estimate of $1.33, indicating strong operational execution, although revenue of $4.10 billion fell slightly short of the expected $4.13 billion.
- Analyst Target Adjustments: JPMorgan analyst Aidan Kelly raised the price target for Edison International to $75 while maintaining a Neutral rating, whereas Barclays lowered its target to $77, reflecting differing market perspectives on the company's stable performance.
- Community Safety Focus: CEO Pedro Pizarro emphasized the company's commitment to community safety and resilience through wildfire mitigation and rebuilding initiatives, highlighting its social responsibility efforts.
- Stable Fiscal Outlook: Edison International maintained its FY26 EPS outlook at $5.90 to $6.20, slightly below the consensus estimate of $6.11, indicating the company's confidence in its future performance.
- Earnings Beat: Edison International reported Q1 2026 adjusted EPS of $1.42, exceeding expectations by $0.09, which underscores the company's robust performance in the clean energy sector and boosts investor confidence.
- Revenue Miss: Despite a 7.6% year-over-year revenue growth to $4.1 billion, the company fell short of estimates by over $23 million, reflecting increased market competition and cost pressures that could impact future profitability.
- Price Target Adjustment: Barclays lowered Edison International's price target from $78 to $77 while maintaining an 'Overweight' rating, indicating analysts remain optimistic about its future performance with an expected upside of 10%.
- Core EPS Guidance Reaffirmed: Edison International reaffirmed its 2026 core EPS guidance of $5.90 to $6.20 and expressed confidence in achieving a 5-7% core EPS growth target from 2025 to 2030, demonstrating the company's strong commitment to future growth.
- Compensation Program Progress: Southern California Edison has offered over $500 million in compensation through its Wildfire Recovery Compensation Program to nearly 3,800 claimants, demonstrating strong support and commitment to affected communities.
- Surge in Claims: As of April 29, 2026, nearly 3,200 claims have been submitted, involving over 9,500 individuals and legal entities, reflecting the urgent need for compensation within the community.
- Fast Processing Mechanism: The program promises to deliver compensation offers within 90 days and make payments within 30 days after all conditions are met, significantly reducing the processing time compared to traditional litigation and enhancing claimant satisfaction.
- Community Meeting Scheduled: Southern California Edison will hold a community meeting on May 9 focused on rebuilding efforts in the Altadena area, providing both in-person and virtual participation options to facilitate communication and support with the community.
- Core Earnings Performance: Edison International reported a core earnings per share of $1.42 for Q1 2026, reflecting a $0.05 increase from the previous year, primarily due to the implementation of last year's GRC decision, indicating ongoing financial stability.
- Long-Term Growth Outlook: The company reaffirmed its core EPS guidance for 2026 at $5.90 to $6.20, alongside a long-term core EPS growth rate of 5% to 7%, demonstrating management's confidence in future financial performance.
- Capital Investment Plan: Edison International plans to invest $38 billion to $41 billion in grid infrastructure from 2026 to 2030, which is expected to drive approximately 7% compound annual growth in SCE's rate base, supporting future business expansion.
- Wildfire Risk Management: The physical hardening work on the distribution system in high fire risk areas is now about 93% complete, and the company has extended over $500 million in compensation offers to community members affected by the Eaton fire, showcasing its proactive approach to risk management and community responsibility.
- Earnings Beat: Edison reported a Q1 non-GAAP EPS of $1.42, exceeding expectations by $0.09, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Miss: Despite a 7.6% year-over-year revenue increase to $4.10 billion, the figure fell short of expectations by $30 million, indicating potential challenges from increased market competition and cost pressures that could impact future growth.
- Stable Guidance: The company affirmed its 2026 core EPS guidance of $5.90 to $6.20, demonstrating management's confidence in future profitability and projecting a core EPS growth of 5-7% from 2025 to 2030.
- Legal Victory: Edison prevailed in a shareholder lawsuit related to wildfires in the Los Angeles area, which alleviates potential financial burdens and further strengthens the company's reputation among investors.










