Edison International (EIX) was elevated to a Zacks Rank #1 (Strong Buy) this week, reflecting growing confidence in the utility’s near-term earnings trajectory. The uplift follows three consecutive upward revisions to the consensus earnings estimate for the current quarter, now pegged at a 12% year-over-year increase. Analysts cited improving operational performance in California’s regulated power segment and successful cost-management initiatives as primary drivers of the upgrade.

EIX’s consensus forecast for full-year adjusted EPS has risen by $0.10 since early April, now standing at $3.95. That uptick is supported by a recent decision from the California Public Utilities Commission granting Edison a 7% allowed return on equity for its transmission investments, unlocking an incremental $80 million in annual revenue. Management also reaffirmed its capital expenditure plan of $2.6 billion for system upgrades and wildfire mitigation projects, which is expected to yield 4% rate base growth in 2027.

In the Zacks Style Scores framework, Edison International earned an “A” in Momentum, driven by a 15% share gain relative to the utilities sector over the last three months. The stock’s relative strength has been bolstered by a series of constructive analyst commentaries and growing institutional interest, with fund ownership rising by 4 percentage points since February. This upward trajectory signals that short-term trading sentiment is firmly positive, complementing the longer-term value thesis for dividend-oriented investors.