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Here's Why Southern Co. (SO) Fell More Than Broader Market
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Southern Co. (SO - Free Report) closed the most recent trading day at $89.35, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.04%.
The the stock of power company has risen by 4.65% in the past month, leading the Utilities sector's gain of 4.22% and the S&P 500's gain of 1.95%.
Market participants will be closely following the financial results of Southern Co. in its upcoming release. The company is expected to report EPS of $1.31, down 7.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.2 billion, up 3.11% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $26.47 billion, indicating changes of +10.14% and +4.84%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Southern Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Southern Co. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Co. is currently trading at a Forward P/E ratio of 22.33. For comparison, its industry has an average Forward P/E of 17.7, which means Southern Co. is trading at a premium to the group.
Investors should also note that SO has a PEG ratio of 3.21 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Utility - Electric Power industry stood at 2.8 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Southern Co. (SO) Fell More Than Broader Market
Southern Co. (SO - Free Report) closed the most recent trading day at $89.35, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.04%.
The the stock of power company has risen by 4.65% in the past month, leading the Utilities sector's gain of 4.22% and the S&P 500's gain of 1.95%.
Market participants will be closely following the financial results of Southern Co. in its upcoming release. The company is expected to report EPS of $1.31, down 7.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.2 billion, up 3.11% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.02 per share and revenue of $26.47 billion, indicating changes of +10.14% and +4.84%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Southern Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Southern Co. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Co. is currently trading at a Forward P/E ratio of 22.33. For comparison, its industry has an average Forward P/E of 17.7, which means Southern Co. is trading at a premium to the group.
Investors should also note that SO has a PEG ratio of 3.21 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Utility - Electric Power industry stood at 2.8 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.