In the latest close session, Southern Co. (SO) was up +1.51% at $93.72. The stock exceeded the S&P 500, which registered a loss of 0.55% for the day. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.
The power company's shares have seen a decrease of 0.86% over the last month, surpassing the Utilities sector's loss of 1.16% and falling behind the S&P 500's gain of 3.64%.
Market participants will be closely following the financial results of Southern Co. in its upcoming release. The company is predicted to post an EPS of $1.46, indicating a 2.1% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, up 2.87% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.27 per share and a revenue of $28.37 billion, signifying shifts of +5.43% and +6.16%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Co. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Southern Co. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Southern Co. currently has a Forward P/E ratio of 21.6. For comparison, its industry has an average Forward P/E of 18.13, which means Southern Co. is trading at a premium to the group.
Investors should also note that SO has a PEG ratio of 3.19 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. SO's industry had an average PEG ratio of 2.7 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% 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.
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Southern Company (The) (SO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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