Market Recognition: When Utilities Become Value Plays#

The Case for Reassessment#

Wall Street's valuation frameworks rarely cast utilities in a favourable light for growth-conscious investors. Yet when Zacks Investment Research recently identified EIX as one of five undervalued stocks trading at compelling EV-to-EBITDA multiples, the inclusion signalled something unusual: a regulated utility positioned at the intersection of deep value and material earnings expansion. The move reflects a broader market shift away from viewing utilities as pure yield vehicles, repositioning them as beneficiaries of an energy transition that promises both regulatory tailwinds and operational leverage. For institutional investors accustomed to viewing utilities as bond proxies with minimal upside, this recalibration represents a fundamental shift in sectoral narratives.