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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 $67.90 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the power company had lost 6.09% over the past month. This has lagged the Utilities sector's loss of 1.46% and the S&P 500's gain of 8.32% in that time.
Investors will be hoping for strength from Southern Co. as it approaches its next earnings release, which is expected to be February 16, 2023. In that report, analysts expect Southern Co. to post earnings of $0.24 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 5.68% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Southern Co.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.52% lower. Southern Co. is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 18.32. For comparison, its industry has an average Forward P/E of 17.5, which means Southern Co. is trading at a premium to the group.
We can also see that SO currently has a PEG ratio of 4.58. 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 3.15 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southern Co. (SO) Gains As Market Dips: What You Should Know
Southern Co. (SO - Free Report) closed at $67.90 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the power company had lost 6.09% over the past month. This has lagged the Utilities sector's loss of 1.46% and the S&P 500's gain of 8.32% in that time.
Investors will be hoping for strength from Southern Co. as it approaches its next earnings release, which is expected to be February 16, 2023. In that report, analysts expect Southern Co. to post earnings of $0.24 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 5.68% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Southern Co.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.52% lower. Southern Co. is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 18.32. For comparison, its industry has an average Forward P/E of 17.5, which means Southern Co. is trading at a premium to the group.
We can also see that SO currently has a PEG ratio of 4.58. 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 3.15 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.