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Southern Co. (SO) Stock Moves -0.55%: What You Should Know

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In the latest trading session, Southern Co. (SO - Free Report) closed at $45.28, marking a -0.55% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.54%. Elsewhere, the Dow lost 1.49%, while the tech-heavy Nasdaq lost 2.17%.

Coming into today, shares of the power company had lost 2.42% in the past month. In that same time, the Utilities sector lost 1.41%, while the S&P 500 lost 6.77%.

SO will be looking to display strength as it nears its next earnings release, which is expected to be February 20, 2019. The company is expected to report EPS of $0.22, down 56.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.35 billion, down 4.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $23.21 billion, which would represent changes of +0.33% and +0.76%, respectively, from the prior year.

Any recent changes to analyst estimates for SO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. SO is currently a Zacks Rank #3 (Hold).

Investors should also note SO's current valuation metrics, including its Forward P/E ratio of 15.03. This represents a discount compared to its industry's average Forward P/E of 18.5.

Investors should also note that SO has a PEG ratio of 3.34 right now. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.42 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 95, putting it in the top 37% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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