Why Utility Stock Edison International Is Plunging Today

Why Utility Stock Edison International Is Plunging Today

Shares of electric utility Edison International ( EIX ) dived Tuesday as a devastating wildfire swept through Southern California.

[ibd-display-video id=2997329 width=50 float=left autostart=true] Officials haven’t determined a cause yet, but the stock action echoed PG&E’s ( PCG ) plunge two months ago amid wildfires in Northern California.

Downed PG&E power lines  may have sparked those fires, and state officials are investigating the cause. The utility, however, has argued the blaze may have been caused by third-party equipment.

Edison stock plunged 12.8% to 70 on the stock market today , hitting a 52-week low intraday. PG&E rose 0.15% but saw a nearly 30% collapse in mid-October.

IBD’S TAKE :  Research has shown as much as 50% of a winning stock’s performance owes to the strength of its industry group and sector at the time of its breakout. You can keep track of industry group movements using IBD’s Industry Sub-Group Rankings Table .

In Southern California, more than 260,000 Edison customers lost power due to the massive fire, the Los Angeles Times reported Monday night, with a fire official saying Tuesday that intense winds had made the wildfire “pretty much unstoppable.”

Edison said via Twitter ( TWTR ) Tuesday that roughly 20,000 customers in Ventura County remain without power and warned some customers should prepare to be without power for days.

Edison pays a quarterly dividend of 54.25 cents a share, which works out to an annualized yield of more than 3% after Tuesday’s share-price plunge.

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