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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 $98.29 in the latest trading session, marking a +2.25% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 2.71%. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.

The stock of power company has risen by 4.34% in the past month, leading the Utilities sector's gain of 3.14% and the S&P 500's gain of 3.5%.

The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2025. The company is forecasted to report an EPS of $1.46, showcasing a 2.1% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $7.48 billion, showing a 2.87% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $4.27 per share and a revenue of $28.36 billion, demonstrating changes of +5.43% and +6.12%, respectively, from the preceding year.

Any recent changes to analyst estimates for Southern Co. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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 0.02% lower. Southern Co. presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 22.49. This indicates a premium in contrast to its industry's Forward P/E of 18.97.

Meanwhile, SO's PEG ratio is currently 3.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power industry currently had an average PEG ratio of 2.83 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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