In the latest trading session, Southern Co. (SO) closed at $91.83, marking a +1.02% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
The stock of power company has risen by 1% in the past month, leading the Utilities sector's loss of 0% and undershooting the S&P 500's gain of 4.27%.
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 July 31, 2025. In that report, analysts expect Southern Co. to post earnings of $0.99 per share. This would mark a year-over-year decline of 9.17%. Alongside, our most recent consensus estimate is anticipating revenue of $6.76 billion, indicating a 4.66% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.28 per share and a revenue of $28.29 billion, signifying shifts of +5.68% and +5.84%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Southern Co. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Southern Co. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Southern Co. is presently being traded at a Forward P/E ratio of 21.26. This valuation marks a premium compared to its industry average Forward P/E of 17.78.
We can also see that SO currently has a PEG ratio of 3.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power industry had an average PEG ratio of 2.59 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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