On Mar 26, we have upgraded electric utility
) to a Zacks Rank #1 (Strong Buy).
BROOKFIELD INFR (BIP): Free Stock Analysis
EDISON INTL (EIX): Free Stock Analysis Report
HUANENG POWER (HNP): Free Stock Analysis
OTTER TAIL CORP (OTTR): Free Stock Analysis
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Why the Upgrade?
Edison International reported strong results in the fourth
quarter 2012 with earnings and revenue comfortably surpassing the
Zacks Consensus Estimates. The bottom line benefited from strong
performance at Southern California Edison (SCE). The
implementation of the 2012 General Rate Case at SCE drove its
Edison International with its balanced portfolio of regulated
utility assets and well-managed merchant energy operations is
well placed in the utility sector. The company is also
implementing infrastructure improvement programs, focusing
primarily on system reliability, smart grid technology and
compliance with California's renewable energy mandate through
programs like SmartConnect and Solar Photovoltaic Program (SPVP).
With the uncertainty related to the rate case behind the company,
Edison International has plans to forge ahead in 2013 and 2014
with substantial capital investments. We appreciate the
initiatives undertaken by the company to improve and add to its
Edison International has a strong balance sheet with ia
debt-to-capitalization of 45.2% at the end of 2012. A strong cash
generator, Edison had a cash balance of $170 million at 2012 end
with cash flow from operating activities reaching $3.3 billion
during the year.
Edison International 's premier position in the utility space is
upheld by the company's solid 2013 guidance. Edison International
forecast full year 2013 earnings per share in the range of
Over the long term, the earnings growth rate is pegged at 5.85%.
The last 60 days saw the Zacks Consensus Estimates for 2013 and
2014 rise a respective 7.3% and 6.1% to $3.51 and $3.64.
Other Stocks to Consider
Other than Edison International , a few other utilities are also
performing well and have a favorable Zacks Rank. The stocks worth
Brookfield Infrastructure Partners L.P.
Huaneng Power International, Inc.
Otter Tail Corporation
). All of them presently have a Zacks Rank #1 (Strong Buy).