Zacks.com Spotlights Plains GP, Edison International, TD SYNNEX, CONMED, and PG&E
Stock Picks: The article highlights five stocks with attractive EV-to-EBITDA ratios: Plains GP Holdings, Edison International, TD SYNNEX Corp., CONMED Corp., and PG&E Corp., all of which are expected to show significant earnings growth in 2025.
Valuation Metrics: While the price-to-earnings (P/E) ratio is commonly used for stock evaluation, the EV-to-EBITDA ratio is presented as a more reliable metric, particularly for assessing companies with debt and those that may be loss-making but EBITDA-positive.
Investment Strategy: The article suggests that investors should not rely solely on EV-to-EBITDA but should combine it with other ratios like price-to-book (P/B) and price-to-sales (P/S) for a comprehensive stock screening strategy.
Research Tools: Zacks Investment Research offers tools like the Research Wizard to help investors screen stocks and develop their own investment strategies, emphasizing the importance of informed decision-making in stock trading.
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Analyst Views on EIX
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- Investment Strategy in Turbulent Markets: During times of market turbulence and uncertainty, many investors are turning to high-dividend stocks, which typically have high free cash flows and reward shareholders with substantial dividends, thereby enhancing investor confidence and stability.
- High-Yield Stock Analysis: Analysts have rated three high-yield stocks in the utilities sector, including Edison International (EIX), AES Corp (AES), and Clearway Energy Inc (CWEN), which are favored for their stable cash flows and dividend payments, indicating their investment potential in uncertain market conditions.
- Importance of Dividend Payments: High-dividend stocks not only provide a stable income source for investors but also offer relative safety during market fluctuations, attracting investors seeking to preserve capital, especially as economic uncertainty increases.
- Analyst Accuracy: The ratings from the most accurate analysts on these high-yield stocks highlight their significance in the current economic environment, allowing investors to make more informed investment decisions, which could further enhance the market performance of these companies.
- Microsoft Rating Change: Stifel analyst Brad Reback downgraded Microsoft from Buy to Hold on February 5, lowering the price target from $540 to $392, indicating a cautious outlook on the company's future growth which may affect investor confidence.
- Quanta Services Strong Performance: Quanta Services reported Q4 earnings of $3.16 per share, surpassing the analyst consensus of $3.02, with quarterly sales of $7.842 billion exceeding expectations of $7.368 billion, showcasing the company's robust performance and growth potential in the market.
- Edison International's Positive Results: Edison International reported quarterly earnings of $1.86 per share, beating the analyst estimate of $1.48, with quarterly sales reaching $5.213 billion, above the expected $4.354 billion, indicating solid growth in the energy sector.
- Market Reactions: Microsoft shares fell 0.3% to close at $398.46, while Quanta Services shares rose 6.7% to settle at $554.00, and Edison International shares gained 4.3% to close at $72.66, reflecting varied market responses to different companies.
- Core Earnings Beat: Edison International reported a core EPS of $6.55 for 2025, exceeding guidance and extending a two-decade track record of surpassing annual EPS targets, showcasing the company's excellence in execution and cost management.
- Customer Rate Reductions: A 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized businesses not only enhances customer satisfaction but also strengthens the company's appeal in a competitive market.
- Capital Expenditure Plans: The company plans to invest $7 billion in 2026, with an updated capital plan projected to reach $38 billion to $41 billion from 2026 to 2030, anticipating approximately 7% rate base growth during this period to support future business expansion.
- Risks and Uncertainties: While management maintains an optimistic outlook for future growth, uncertainties remain regarding potential losses from the Eaton fire and ongoing legal investigations, with management emphasizing continued engagement with policymakers to ensure regulatory stability.
- Executive Bonus Cuts: Edison International (EIX) announced a 40% reduction in executive bonuses to reflect the impact of the Eaton wildfire in the Los Angeles area in January 2025, which lasted nearly four weeks, resulting in 19 fatalities and damage to over 10,000 structures.
- Community Responsibility: CEO Pedro Pizarro stated that while the bonus cuts do not reflect company or executive performance, the decision aims to demonstrate understanding and support for the community during this difficult period, thereby strengthening the company's ties with local residents.
- Compensation Program Adjustments: In addition to the bonus cuts, Edison International is modifying its wildfire compensation program to provide stronger support for displaced renters and increasing net damages to cover attorney fees, further showcasing the company's commitment to assisting those affected by the disaster.
- Financial Performance and Outlook: Despite the wildfire impact, Edison International's stock rose 2% in after-hours trading due to better-than-expected Q4 adjusted earnings, with guidance for FY 2026 adjusted EPS set at $5.90-$6.20, slightly below the analyst consensus estimate of $6.12.
- Increased Legal Expense Compensation: Southern California Edison’s wildfire compensation program now allows claimants to retain more of their compensation for rebuilding, with legal expense coverage raised to 20% of net damages, which will aid more affected individuals and businesses in their recovery efforts.
- Enhanced Tenant Support: The compensation scheme for tenants now offers up to three months of housing assistance based on actual rent or fair rental value, aimed at helping displaced renters better manage the financial pressures during their transition period.
- Prompt Compensation Pathway: The program's claims process averages just over 100 minutes, with payments made within 30 days after all settlement agreement conditions are met, significantly reducing the time and uncertainty associated with traditional litigation, thereby boosting affected individuals' confidence.
- Participant Information Updates: As of February 2026, 2,405 claims have been submitted involving nearly 7,000 individuals, with total compensation exceeding $183 million; affected participants will receive detailed updates about the program enhancements and next steps by the end of this week to ensure timely awareness of their claims.







