In the latest trading session, Southern Co. (SO) closed at $96.15, marking a -1.36% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
The power company's shares have seen an increase of 3.25% over the last month, surpassing the Utilities sector's gain of 2.95% and the S&P 500's gain of 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Co. in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company is expected to report EPS of $1.5, up 4.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.57 billion, reflecting a 4.12% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $28.68 billion, indicating changes of +5.68% and +7.33%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Southern Co. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Southern Co. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Southern Co. is currently exchanging hands at a Forward P/E ratio of 22.8. This signifies a premium in comparison to the average Forward P/E of 19.14 for its industry.
Investors should also note that SO has a PEG ratio of 3.45 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 Utility - Electric Power was holding an average PEG ratio of 2.89 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Southern Company (The) (SO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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