The most recent trading session ended with Southern Co. (SO) standing at $86.86, reflecting a -0.41% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 0.84%, and the tech-heavy Nasdaq lost 2.15%.
The the stock of power company has fallen by 6.17% in the past month, lagging the Utilities sector's loss of 3.62% and overreaching the S&P 500's loss of 12.16%.
The upcoming earnings release of Southern Co. will be of great interest to investors. The company's earnings report is expected on May 1, 2025. On that day, Southern Co. is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 13.59%. Alongside, our most recent consensus estimate is anticipating revenue of $6.93 billion, indicating a 4.3% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.30 per share and a revenue of $27.43 billion, signifying shifts of +6.17% and +2.63%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 0.18% decrease. Southern Co. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Southern Co. currently has a Forward P/E ratio of 20.28. This valuation marks a premium compared to its industry's average Forward P/E of 17.39.
One should further note that SO currently holds a PEG ratio of 3.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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