Back to top

Image: Bigstock

Southern Co. (SO) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

Southern Co. (SO - Free Report) closed the most recent trading day at $98.43, moving -1.29% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.63% for the day. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 0.47%.

The power company's stock has climbed by 8.83% in the past month, exceeding the Utilities sector's gain of 3.16% and the S&P 500's gain of 0.92%.

Investors will be eagerly watching for the performance of Southern Co. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2025. It is anticipated that the company will report an EPS of $1.47, marking a 2.8% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.49 billion, indicating a 2.97% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $4.28 per share and a revenue of $28.52 billion, demonstrating changes of +5.68% and +6.71%, respectively, from the preceding year.

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

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Currently, Southern Co. is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Southern Co. has a Forward P/E ratio of 23.32 right now. This valuation marks a premium compared to its industry average Forward P/E of 19.43.

It's also important to note that SO currently trades at a PEG ratio of 3.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power was holding an average PEG ratio of 2.9 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Southern Company (The) (SO) - free report >>

Published in