Jim Cramer on Edison International: "I Think it's a Little Higher Risk"

Edison International (NYSE:EIX) is one of the stocks that Jim Cramer shared insight on. Noting the stock is down 31% since the January California fires, a caller asked Cramer whether it is a buy. In response, he said:

“Yeah, I am going to have to punt on that. You know, look, I just think California’s too hard. I just really do. I think it’s too hard. Even for Patti Poppe, it’s too hard. If it’s too hard for Patti Poppe, it’s too hard for me. Now, she wouldn’t say it’s too hard, but I think it’s too hard, and I don’t want to, look, you know, I think it’s a little higher risk.”

Edison International (NYSE:EIX) produces and delivers electricity throughout Southern California. The company serves residential, commercial, industrial, and agricultural customers. The stock was among the worst performers in the S&P 500 in the first half of 2025 and Cramer stated on July 1:

“Finally, the fifth worst performer… of the first half was Edison International, that’s a regulated electric utility in southern California, with the stock that was down 35%. This year began with those horrific LA wildfires, which took place in the company’s service area. But that’s not what truly crushed the stock. California utilities have all proven to be bad investments this year… What’s the issue in California? Proposed regulations that were originally aimed at addressing affordability, but somehow morphed into a major regulatory overhaul.

The bill in question… would create a new regulatory authority, force utilities to take on debt to pay for fire mitigation, capital efforts, and other capital spending, while also limiting their ability to recoup these costs by raising prices. Oh man, the utilities would… have to make an ongoing contribution to a state-run wildfire insurance fund.

The bill passed the California Senate last month, and it’s still working its way through… the state assembly. I don’t want to get into the politics of this, but obviously, it would be very bad for the utilities that do business in the state. If you buy something like Edison International here, you’re betting that this bill dies in the next couple of weeks or gets vetoed by the governor. I personally wouldn’t take that bet.”

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