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Southern Co. (SO) Stock Slides as Market Rises: Facts to Know Before You Trade

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Southern Co. (SO - Free Report) closed the latest trading day at $66.86, indicating a -0.58% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw an upswing of 0.23%, while the tech-heavy Nasdaq appreciated by 1.14%.

The the stock of power company has fallen by 4.61% in the past month, lagging the Utilities sector's gain of 0.14% and the S&P 500's gain of 5.2%.

Market participants will be closely following the financial results of Southern Co. in its upcoming release. The company is forecasted to report an EPS of $0.91, showcasing a 15.19% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.02 billion, indicating an 8.35% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and a revenue of $27.89 billion, representing changes of +9.86% and +10.43%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Co. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.06% higher. At present, Southern Co. boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Southern Co. is currently being traded at a Forward P/E ratio of 16.78. This valuation marks a premium compared to its industry's average Forward P/E of 14.31.

Investors should also note that SO has a PEG ratio of 4.19 right now. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.49 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 35% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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