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Southern Co. (SO) Falls More Steeply Than Broader Market: What Investors Need to Know
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Southern Co. (SO - Free Report) ended the recent trading session at $86.01, demonstrating a -1.14% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.78%.
The power company's stock has dropped by 5.73% in the past month, falling short of the Utilities sector's loss of 4.83% and the S&P 500's loss of 1.99%.
The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.72, marking a 7.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.34 billion, up 6.56% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.59 per share and revenue of $31.04 billion. These totals would mark changes of +6.74% and +5.02%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Co. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Right now, Southern Co. possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Southern Co. is currently being traded at a Forward P/E ratio of 18.95. This indicates a premium in contrast to its industry's Forward P/E of 17.02.
We can also see that SO currently has a PEG ratio of 2.32. 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. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.54.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Southern Co. (SO) Falls More Steeply Than Broader Market: What Investors Need to Know
Southern Co. (SO - Free Report) ended the recent trading session at $86.01, demonstrating a -1.14% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.78%.
The power company's stock has dropped by 5.73% in the past month, falling short of the Utilities sector's loss of 4.83% and the S&P 500's loss of 1.99%.
The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.72, marking a 7.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.34 billion, up 6.56% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.59 per share and revenue of $31.04 billion. These totals would mark changes of +6.74% and +5.02%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Co. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Right now, Southern Co. possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Southern Co. is currently being traded at a Forward P/E ratio of 18.95. This indicates a premium in contrast to its industry's Forward P/E of 17.02.
We can also see that SO currently has a PEG ratio of 2.32. 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. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.54.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.