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Southern Co. (SO) Stock Moves -0.34%: What You Should Know

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Southern Co. (SO - Free Report) closed at $90.23 in the latest trading session, marking a -0.34% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.07%. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq lost 1.71%.

Prior to today's trading, shares of the power company had gained 5.8% over the past month. This has outpaced the Utilities sector's gain of 2.4% and the S&P 500's loss of 7.03% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Southern Co. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.17, marking a 13.59% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 4.3% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.31 per share and revenue of $27.43 billion. These totals would mark changes of +6.42% and +2.63%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Southern Co. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% decrease. Right now, Southern Co. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 21.03. This denotes a premium relative to the industry's average Forward P/E of 18.32.

It's also important to note that SO currently trades at a PEG ratio of 3.09. 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 Utility - Electric Power industry currently had an average PEG ratio of 2.65 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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