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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- Price Range Analysis: DVY ETF's 52-week low is $115.94 per share, with a high of $158.915, and the latest trade at $148.01 indicates the current price is near its high, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and identify potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the underlying asset holdings.
- Liquidity Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify significant inflows or outflows, where inflows necessitate purchasing underlying assets, while outflows may lead to selling, affecting the ETF's overall performance.
- Scholarship Amount: The 2026 Lineworker Scholarship offers up to $25,000 annually for up to 12 recipients, facilitating enrollment in the Powerline Worker Certificate program at Los Angeles Trade-Technical College, thereby paving the way for future careers in the energy sector.
- Program Background: Now in its sixth year, this scholarship initiative aims to provide essential training for individuals from diverse backgrounds to enter the energy and utility industry, addressing the increasing demand for skilled labor in the electrical grid sector.
- Career Outlook: According to the Bureau of Labor Statistics, employment for electrical power line installers and repairers is projected to grow by 7% from 2024 to 2034, primarily driven by rising electrical grid needs, indicating strong long-term growth potential in this field.
- Eligibility Criteria: The scholarship is open to applicants who meet specific requirements, with preference given to California residents, necessitating financial need, a high school diploma or equivalent, and eligibility to work in the U.S., ensuring alignment between workforce training and industry demand.
- Downgrade Impact: Analyst Paul Fremont downgraded Edison International from 'Neutral' to 'Sell', reducing the price target from $59.50 to $63, indicating a potential downside of approximately 17% from the current share price.
- Earnings Forecast Adjustment: Edison International expects core EPS for FY 2026 to range between $5.90 and $6.20, down from $6.55 in FY 2025, reflecting the earnings pressure the company is facing.
- Regulatory Factors: California Assembly Bill 2666 mandates the California Public Utilities Commission to adjust future authorized revenue requirements based on actual past costs, which could impact Southern California Edison’s earnings performance and increase future uncertainties.
- Investor Attention: While Edison International is listed among the best utility stocks for dividends in 2026, analysts believe that certain AI stocks offer greater upside potential and carry less downside risk, which may attract investor interest.
- Dividend Overview: Edison International's 5.00% Trust Preference Securities (SCE.PRL) recently declared a dividend of $0.3125 per share, demonstrating the company's ongoing commitment to stable dividends, which enhances investor confidence.
- ETF Composition Insight: According to ETF Finder, Edison International (EIX) constitutes 7.72% of the AGF U.S. Market Neutral Anti-Beta Fund ETF (BTAL), indicating its significant presence in the market, which may attract more investor attention.
- Market Performance Update: In Wednesday trading, Edison International's Trust Preference Securities (SCE.PRL) rose approximately 0.1%, while common shares (EIX) increased about 0.6%, reflecting positive market sentiment towards its stock, potentially driving future investment inflows.
- Investor Focus: As market interest in S.A.F.E. dividend stocks grows, Edison International's preferred shares may become a focal point for investors, further enhancing their appeal in the stock market.
- Lawsuit Dismissal: A U.S. District Court in Los Angeles dismissed a lawsuit against Edison International (EIX) alleging shareholder fraud before the January 2025 wildfires, stating that the company's claims of significantly reducing disaster loss risk were too vague for reasonable investors to rely on.
- Shareholder Allegations: Shareholders accused Southern California Edison of being 'structurally unable' to address extreme weather events and safely implement its Public Safety Power Shutoff program for wildfire mitigation, particularly before the devastating Eaton Fire last year.
- Wildfire Impact: The January 2025 wildfires resulted in 31 fatalities and damaged over 16,000 structures, with the Eaton Fire and the Palisades Fire being the primary sources of destruction, highlighting the company's challenges in disaster management.
- Power Shutoff Option: California's power shutoff option allows utilities to cut power to transmission lines during extreme weather capable of generating dangerous sparks, despite the company's previous claims that hardening power lines and trimming vegetation could reduce wildfire risk by as much as 90%.
- Surge in Oil Prices: The ongoing war in Iran has pushed oil prices above $100 per barrel, with expectations that this trend will persist, as approximately 20% of global oil supply is stranded due to fighting in the Strait of Hormuz, prompting swift market reactions, particularly in energy-dependent Europe and Asia.
- Investor Flight to Safety: In this uncertain market environment, investors are rapidly seeking low-beta stocks that offer strong dividends and predictable income streams, indicating a strategic shift towards assets that can withstand energy shocks.
- Safe Haven Stocks: Analysis reveals five stocks that meet the criteria for safe havens, each boasting a Benzinga Edge Value Score of at least 85, highlighting their strong fundamentals and technical signals, making them attractive investments in the current market landscape.
- Company Performance Insights: For instance, White Mountain Insurance Group Ltd. has seen its stock reach all-time highs in 2026, trading at just 5 times earnings, indicating a strong buying opportunity, while other companies like APA Corp. and Northern Oil and Gas Inc. are also showing robust performance signals.










