Wildfire-Linked Litigation, Liabilities Weigh Down On Edison International’s (EIX) Share Price

We recently published a list of 10 Stocks Investors Dumped Fast. In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against other worst-performing stocks.

Edison International dropped its share prices hit a new all-time low on Monday, following a rating downgrade from an investment firm.

At intra-day trading, Edison International (NYSE:EIX) touched a new 52-week low of $48.39 before a slight buying raised its price higher to end the day just down by 8.07 percent at $49.42 apiece.

The drop followed Wolfe Research’s significant downgrade on the company’s stock to “peer perform” from “outperform” previously over uncertainties from the ongoing litigation, as well as potential liabilities in relation to the Eaton fire in California in January this year.

Further dampening sentiment were news reports that the company’s subsidiary, Southern California Edison—which covers and energizes the wildfire-affected area—has underestimated the potential size of the incident by a factor of ten.

It can be learned that Edison International (NYSE:EIX) has been linked to the Los Angeles wildfire that claimed dozens of lives and resulted in billions worth of damages.

A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.

The company was under public scrutiny due to a potential connection to the wildfire after discovering a downed conductor at a tower near the area where the Hurst Fire broke out on Tuesday evening.

Overall, EIX ranks 3rd on our list of worst-performing stocks. While we acknowledge the potential of EIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.