Core Viewpoint - The S&P 500 Index experienced a notable decline, primarily driven by a few large tech stocks, highlighting the volatility of the market and the tendency for rapid declines compared to rises [1]. Group 1: Market Performance - On a recent trading day, approximately one-fourth of the S&P 500 Index stocks were positive, with 32 stocks rising by at least 1%, indicating potential opportunities despite overall market weakness [2]. - Many S&P 500 stocks have struggled to maintain rallies, typically seeing only 5%-7% increases before faltering [4]. Group 2: Stock Analysis - McCormick (MKC), a leading spice manufacturer, is highlighted as a stable investment despite a trailing earnings multiple of 22x and a history of losses over the past three years, suggesting that stability is valued in the current market [4]. - Edison International (EIX), a California-based electric utility, is identified as a speculative comeback candidate, trading at 10x earnings and recovering from significant fire damage in its operational area [5].

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Company Ratings and Performance - **Edison International (NYSE:EIX)**: - Dividend Yield: 5.70% - Barclays analyst Nicholas Campanella maintained an Overweight rating and reduced the price target from $69 to $68 on October 29, 2025, with an accuracy rate of 68% [7] - Wells Fargo analyst Shahriar Pourreza initiated coverage with an Equal-Weight rating and a price target of $56 on October 28, 2025, with an accuracy rate of 70% [7] - Recent News: Posted upbeat quarterly results on October 28, 2025 [7] - **Avista Corp (NYSE:AVA)**: - Dividend Yield: 4.80% - Wells Fargo analyst Shahriar Pourreza initiated coverage with an Equal-Weight rating and a price target of $38 on October 28, 2025, with an accuracy rate of 70% [7] - Jefferies analyst Julien Dumoulin-Smith maintained a Hold rating and raised the price target from $40 to $41 on October 22, 2025, with an accuracy rate of 65% [7] - Recent News: Posted mixed third-quarter results on November 5, 2025 [7] - **Eversource Energy (NYSE:ES)**: - Dividend Yield: 4.74% - Scotiabank analyst Andrew Weisel maintained a Sector Underperform rating and cut the price target from $64 to $63 on November 20, 2025, with an accuracy rate of 69% [7] - Wells Fargo analyst Shahriar Pourreza downgraded the stock from Overweight to Equal-Weight and cut the price target from $79 to $63 on November 20, 2025, with an accuracy rate of 70% [7] - Recent News: Reported better-than-expected quarterly results on November 4, 2025 [7]

Core Insights - Edison International (EIX) is experiencing growth due to increasing demand for clean electricity and is making systematic investments to enhance its infrastructure [1][3] Growth Outlook - The Zacks Consensus Estimate for EIX's 2025 earnings per share (EPS) has risen by 0.33% to $6.10 over the past 60 days [3] - Expected revenues for 2025 are projected at $18.46 billion, indicating a growth of 4.90% from the 2024 reported figure [3] - EIX's long-term earnings growth rate is estimated at 10.93% [3] - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 7.25% [3] Capital Return Program - EIX has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of 82.75 cents per share, leading to an annualized dividend of $3.31 [4] - The current dividend yield stands at 5.76%, significantly higher than the Zacks S&P 500 composite average of 1.12% [4] Capital Investment - EIX follows a systematic capital investment strategy focused on infrastructure development, with capital expenditures of $5.7 billion recorded in 2024 [5] - The company plans to invest between $28 billion and $29 billion from 2025 to 2028, with 97% of this spending allocated to transmission, distribution, and generation capacity [5] Return on Equity - EIX's Return on Equity (ROE) is currently at 13.62%, surpassing the industry average of 9.95% [6] Solvency Ratio - The times interest earned (TIE) ratio for EIX at the end of Q3 2025 was 3.2, indicating strong capability to meet long-term debt obligations [7] Stock Price Performance - Over the past three months, EIX's shares have increased by 6.9%, although this is slightly below the industry's growth of 7% [10]

Core Viewpoint - Edison International has initiated cash tender offers to purchase all outstanding Series A and Series B Fixed-Rate Reset Cumulative Perpetual Preferred Stock, indicating a strategic move to manage its capital structure and potentially reduce dividend obligations [1][3]. Offer Details - The cash tender offers include the purchase of 5.00% Series B Preferred Stock at $995 per share and 5.375% Series A Preferred Stock at $1,000 per share, plus accrued dividends [2][3]. - The total outstanding liquidation preference for Series B Preferred Stock is approximately $503.45 million, while for Series A Preferred Stock, it is about $1.16 billion [2]. - The offers will expire on December 19, 2025, at 5 p.m. New York City time, unless extended or terminated earlier [2]. Financial Implications - The company plans to finance the offers using cash on hand, which suggests a strong liquidity position [5]. - The accrued dividends will be calculated from the last payment date up to the settlement date, which is expected to occur shortly after the expiration date [3][4]. Regulatory and Procedural Information - The offers are subject to specific conditions outlined in the Offer to Purchase and related materials, which will be provided to record holders and other relevant parties [6][7]. - An Issuer Tender Offer Statement has been filed with the SEC, containing additional information regarding the offers [8]. Company Overview - Edison International is a major electric utility holding company, primarily serving Southern California through its subsidiary, Southern California Edison Company, which delivers electricity to approximately 15 million people [14].

Group 1 - The utilities sector is experiencing a strong upward trend year to date due to increased electricity demand driven by the rapid growth of AI infrastructure [1] - The technology sector is also benefiting from this trend, indicating a close relationship between utilities and technology industries [1]

Core Insights - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but this metric has limitations and may not always reflect a company's true value [1][6] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, as it accounts for a company's total value and provides a clearer picture of profitability [2][4] Valuation Metrics - The EV-to-EBITDA ratio is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a more complete valuation approach [4] - A lower EV-to-EBITDA ratio typically indicates that a stock may be undervalued, making it an attractive option for investors [5] Stock Recommendations - Stocks such as El Pollo Loco Holdings, Inc. (LOCO), OppFi Inc. (OPFI), Edison International (EIX), ScanSource, Inc. (SCSC), and Zions Bancorporation (ZION) have been identified as having attractive EV-to-EBITDA ratios [3][11] - Each of these stocks meets specific screening criteria, including low EV-to-EBITDA ratios, P/E ratios below industry medians, and strong growth potential [8][10] Growth Projections - El Pollo Loco is expected to have a year-over-year earnings growth rate of 7.9% for 2025, with a recent upward revision of 4.4% in earnings estimates [12] - OppFi is projected to have a significant earnings growth rate of 65.3% for 2025, with a 10.6% upward revision in earnings estimates [13] - Edison International anticipates a 23.7% earnings growth rate for 2025, with a slight upward revision of 0.5% in estimates [14] - ScanSource expects a year-over-year earnings growth rate of 15.7% for fiscal 2026, with a 4% upward revision in estimates [15] - Zions Bancorporation has a projected earnings growth rate of 19% for 2025, with a 2.1% upward revision in estimates [16]

Core Points - A lawsuit has been filed against Genasys Inc. for allegedly failing to evacuate residents during the Eaton Fire, which resulted in 18 deaths [1][3] - The lawsuit claims that Genasys engaged in "digital redlining" by not providing timely warnings to a historically African American neighborhood in Altadena [1] - Southern California Edison is also named in the lawsuit, with claims that its equipment ignited the fire [2][5] Company and Industry Summary - Genasys Inc. is accused of negligence in its communication efforts during the Eaton Fire, leading to fatalities in a vulnerable community [1][3] - Southern California Edison has acknowledged the likelihood that its equipment caused the fire and is currently reviewing the lawsuit [3][5] - The utility has faced numerous lawsuits and is investigating other entities that may share culpability for the fire [5][6] - A compensation program has been established by Southern California Edison for victims of the Eaton Fire, with 675 claims filed as of last week [4]

CNBC's Brian Sullivan sits down exclusively with Edison International President & CEO Pedro Pizarro at the Edison Electric Institute Conference in Hollywood, FL, to discuss Eaton fire compensation, mitigating wildfire risk, providing safe and affordable electricity and more. ...

Core Insights - Edison International is addressing the aftermath of the Eaton fire, which may have been caused by its equipment, and is working on a wildlife compensation fund to support affected victims [2][3][4] Company Actions - The company has launched a wildfire recovery compensation program allowing impacted individuals to file claims directly, with an expedited process for offers within 90 days [5][6] - Edison International has engaged experts to design the compensation program, aiming to attract a significant number of claims from eligible properties [6][7] Risk Mitigation Efforts - The company acknowledges that wildfire risk will increase, with predictions of a 20% rise in wildfire ignitions in California by 2050 [10] - Edison International has been proactive in redesigning its infrastructure, with 27% of its 50,000 square miles territory classified as high fire risk, and has replaced 6,800 miles of overhead bare wire with insulated wire to mitigate risks [11][12] Regulatory Environment - The state has implemented laws such as AB 1054 and SB 254 to establish clear wildfire mitigation plans and liability caps for utilities, balancing accountability and financial health [14][15] - A new study is mandated to assess building codes, insurance access, and the broader economic impacts of wildfire risks, recognizing that utilities should not bear the catastrophic risk alone [16][17]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Ratings and Performance - **Edison International (NYSE:EIX)**: - Dividend Yield: 5.85% - Analyst Paul Fremont from Ladenburg Thalmann maintained a Neutral rating and raised the price target from $52.5 to $55 on Oct. 30, 2025, with an accuracy rate of 62% [7] - Barclays analyst Nicholas Campanella maintained an Overweight rating and reduced the price target from $69 to $68 on Oct. 29, 2025, with an accuracy rate of 68% [7] - Recent News: Posted better-than-expected third-quarter results on Oct. 28 [7] - **Avista Corp (NYSE:AVA)**: - Dividend Yield: 4.85% - Wells Fargo analyst Shahriar Pourreza initiated coverage with an Equal-Weight rating and a price target of $38 on Oct. 28, 2025, with an accuracy rate of 68% [7] - Jefferies analyst Julien Dumoulin-Smith maintained a Hold rating and raised the price target from $40 to $41 on Oct. 22, 2025, with an accuracy rate of 65% [7] - Recent News: Posted mixed quarterly results on Nov. 5 [7] - **Clearway Energy Inc (NYSE:CWEN)**: - Dividend Yield: 5.19% - Roth Capital analyst Justin Clare reiterated a Buy rating and raised the price target from $38 to $39 on Nov. 5, 2025, with an accuracy rate of 69% [7] - CIBC analyst Mark Jarvi maintained a Neutral rating and increased the price target from $35 to $37 on Oct. 21, 2025, with an accuracy rate of 68% [7] - Recent News: Posted upbeat quarterly results on Nov. 4 [7]