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Southern Co. (SO) Gains As Market Dips: What You Should Know

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Southern Co. (SO - Free Report) closed at $71.31 in the latest trading session, marking a +0.91% move from the prior day. This change outpaced the S&P 500's 0.88% loss on the day. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the power company had lost 6.46% over the past month. This has was narrower than the Utilities sector's loss of 7.06% and the S&P 500's loss of 8.06% in that time.

Southern Co. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.86, up 2.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.62 billion, up 8.09% from the prior-year quarter.

SO's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $24.81 billion. These results would represent year-over-year changes of +4.4% and +7.33%, respectively.

It is also important to note the recent changes to analyst estimates for Southern Co.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% 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 19.84. For comparison, its industry has an average Forward P/E of 18.64, which means Southern Co. is trading at a premium to the group.

We can also see that SO currently has a PEG ratio of 4.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 3.19 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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