Edison International (EIX)

EIX stock forecast: buy or sell

EIX stock outlook

  • Edison International stock inched 1.37% to close at $54.61 on the stock market on Friday.
  • Looking at the chart, price is drawing an scaled downtrend since early June with lower tops and lower bottoms. shares price lost a -14.9% since the downtrend started.
  • Edison International made public its earnings report on July 28
  • Edison International, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States.
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Disclaimer:
The viewpoints expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not know the individual situations of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for informational reasons only

EIX stock chart overview

Should I buy Edison International stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is EIX stock a buy?

Currently, Edison International stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for EIX in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Edison International stock?

"To sell or not to sell", if you are holding Edison International shares?. Much like when we have to buy shares, determining when is appropiate to sell is not a haphazard decision, and we must follow our own trading style. We like very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups are not intended for selling short Edison International stock

A golden rule is that you should never keep a trading operation that results in higher than expected losses by the time of purchase. When to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Edison International stock?

In the current situation of Edison International there is not any eligible sell setup, so Edison International stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Edison International stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one analyst rating was published for Edison International

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Edison International ratings

Brokerage firmRating
Aug 4th, 2020
Royal Bank of Canada Strong buy

Technical analysis

Edison International accumulates a selloff of -14.9% since its latest peak early June at $64.17. The stock plotted 2 consecutive lower tops

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances to find price points on a chart that tend to act as barriers, preventing the price of shares to move up or down. A support level is a level where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until approaching another support level. On the other side, resistance levels are where the price tends to find a curb as it moves up. Again, this means that the price is more likely to "rebound" at this level, and if it finally breaches this level, it will climb easily until it finds the next resistance

The current resistance levels are:

  • R1: $54.86 (0.46% above)
  • R2: $55.00 (0.71% above)
  • R3: $55.16 (1.01% above)
  • The current support levels are:

  • S1: $54.55 (-0.11% below)
  • S2: $54.50 (-0.2% below)
  • S3: $54.35 (-0.48% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It consists of 3 bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on July 27, the price bounced by 3.23%

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price fluctuations to spot when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    The relative strength (RSI) has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really serving to help us make any decisions.

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    Earnings and financials

    Edison International (EIX) reported second-quarter earnings of $1.00 per share, slightly lowering the analysts consensus estimate of $1.11 per share. This quarterly report means an earnings surprise of -9.91%. On the contrary, the company said turnover was $3.0 billion in line with analysts' estimates.

    In contract, the EPS for the same quarter last year was $1.58, so posted EPS is a reduction of -36.71%. Looking at revenue, figures moved up a 6.22% compared to $2.8B same quarter a year ago.

    EIX presents financial report next October. Expected Earnings per Share for this quarter is $1.48. If you own or you are considering buying EIX stock, be on alert as financial reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not honouring your buy/stop-loss orders. You can probably find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.edison.com.

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