Reasons to Consider Edison International as a Wise Investment Right Now
Investment Potential: Edison International (EIX) is positioned as a strong investment option due to rising demand for clean electricity, systematic infrastructure investments, and a Zacks Rank #2 (Buy) rating, with a projected earnings growth rate of 10.93% over the long term.
Financial Performance: The Zacks Consensus Estimate for EIX's 2025 earnings per share has increased to $6.10, with revenues expected to grow by 4.90% to $18.46 billion, while the company has consistently paid dividends, yielding 5.76%.
Capital Investment Strategy: EIX is focusing on infrastructure development with significant capital expenditures, projecting $28-$29 billion in investments from 2025 to 2028, primarily for transmission, distribution, and generation capacity.
Comparative Analysis: EIX's return on equity (ROE) stands at 13.62%, outperforming the industry average, and while its shares have risen 6.9% over the past three months, they have slightly lagged behind the industry growth of 7%.
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- New Power Plant Announcement: FirstEnergy's subsidiaries Mon Power and Potomac Edison have announced plans to construct a 1,200-MW natural gas-fired power plant adjacent to the Fort Martin Power Station in West Virginia, covering 35 acres, with commercial operations expected to begin by late 2031, aimed at addressing energy deficits and enhancing reliable electric service.
- Significant Investment: The gas plant represents a substantial investment of $2.84 billion, indicating the company's commitment to meeting future energy demands and its strategic positioning in the renewable energy transition, with construction anticipated to start in 2027.
- Solar Project Expansion: In addition to the gas plant, Mon Power and Potomac Edison are seeking approval for three new solar projects totaling 70 MW, to be built on former industrial and reclaimed mining lands, further diversifying their energy portfolio and supporting renewable energy development.
- Commitment to Customer Service: FirstEnergy emphasizes that the new plant will strengthen its power infrastructure in West Virginia, ensuring reliable and affordable electricity for families and businesses, aligning with its Integrated Resource Plan's long-term goals to enhance customer satisfaction and market competitiveness.

- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
- Earnings Announcement Date: FirstEnergy is set to release its Q4 earnings on February 17 after market close, with a consensus EPS estimate of $0.54, reflecting an 11.5% year-over-year decline, which may impact investor confidence.
- Historical Performance Review: Over the past two years, FirstEnergy has beaten EPS estimates 75% of the time but has failed to exceed revenue estimates, indicating ongoing challenges in revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and five downward adjustments, while revenue estimates experienced one upward and one downward revision, suggesting a decline in market confidence regarding future performance.
- Credibility Recovery Progress: Despite the $60 million bribery scandal, FirstEnergy's upgrade by Wolfe indicates progress in rebuilding its corporate credibility, which may attract more investor interest.
- New Plant Construction: Mon Power and Potomac Edison plan to build a 1,200-megawatt natural gas plant in Maidsville, West Virginia, expected to power approximately 500,000 homes, thereby enhancing the region's energy supply and ensuring reliable and affordable electricity.
- Project Timeline: If approved by the West Virginia Public Service Commission, construction is anticipated to begin in 2027, with the plant expected to come online by late 2031, reflecting the companies' proactive planning for future electricity demand growth.
- Solar Resource Expansion: The companies are also seeking approval for 70 megawatts of new solar generation on former industrial and reclaimed mine lands, which will complement their existing 30-megawatt solar portfolio, supporting clean energy development and creating construction jobs.
- Customer Service Commitment: Mon Power and Potomac Edison currently serve approximately 395,000 and 285,000 customers, respectively, and the new power projects will further enhance their service capabilities in West Virginia, ensuring they meet the rapidly growing electricity needs.
- New Power Plant: Mon Power and Potomac Edison plan to construct a 1,200-megawatt natural gas power plant in Maidsville, West Virginia, expected to supply electricity to approximately 500,000 homes, thereby enhancing the region's energy supply capacity to meet growing demand.
- Project Timeline: If approved by the West Virginia Public Service Commission, site work is anticipated to commence in 2027, with the plant expected to come online by late 2031, demonstrating the companies' long-term commitment to future power supply reliability.
- Solar Project Expansion: The companies are also seeking to add 70 megawatts of solar generation on former industrial and reclaimed mine lands, including several smaller projects, aimed at further diversifying their renewable energy portfolio while supporting U.S. manufacturing and creating construction jobs.
- Customer Service Commitment: Mon Power and Potomac Edison currently serve 395,000 and 285,000 customers respectively, and these new power initiatives will ensure the companies continue to provide reliable and affordable electricity over the next decade, enhancing customer satisfaction and market competitiveness.







