Why These Energy Stocks Are Losing This Week

3. Edison International (NYSE:EIX) 

Share Price Decline Between June 3 – June 10: 9.93%

Edison International (NYSE:EIX) is one of the largest electric utility holding companies in America, focused on providing clean and reliable energy and energy services through its independent companies.

Edison International (NYSE:EIX) recently crashed to a 5-year low after analysts at Wolfe Research downgraded the stock to Peer Perform from Outperform, citing the risk from ongoing litigation related the Eaton fire in California earlier this year, the lack of clarity around the new California Assembly bill 1054, and pending rate case issues. Moreover, there have also been reports that the company’s subsidiary, Southern California Edison, has underestimated the potential size of the wildfire incident by a factor of ten.

Impax Asset Management stated the following regarding Edison International (NYSE:EIX) in its Q1 2025 investor letter:

“Edison International (NYSE:EIX) (Utilities) is an electric utility that generates a substantial portion of its power via renewable sources and has a strong systematic ESG risk profile. The stock has struggled in the aftermath of the California wildfires, as one of the powerlines tied to the Eaton fire comes under Edison’s jurisdiction. While liabilities are capped and the long-term story is intact, volatility is likely to continue.”