Edison International stock just absorbed a 6.8% hit in a single session, a sharp reset for a utility that came into earnings roughly flat over the past month and modestly ahead over the last quarter. The selloff followed a report that reaffirmed full year core earnings guidance and showed Q2 2026 core earnings per share of US$1.54, supported by trailing earnings and a P/E of 7.5x that sits well below the industry average.

This appears less like a sudden crack in the story and more like a sentiment test focused on balance sheet risk and wildfire reform concerns. The fundamentals will be addressed in the full breakdown that follows.

Is Edison International at 7.5x trailing P/E a genuine bargain, or a trap that reflects its balance sheet…