The latest trading session saw Southern Co. (SO) ending at $93.24, denoting a +0.58% adjustment from its last day’s close. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.63%.
Shares of the power company witnessed a gain of 4.32% over the previous month, beating the performance of the Utilities sector with its loss of 1.25% and the S&P 500’s gain of 3.76%.
Market participants will be closely following the financial results of Southern Co. in its upcoming release. The company plans to announce its earnings on October 31, 2024. It is anticipated that the company will report an EPS of $1.32, marking a 7.04% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.14 billion, reflecting a 2.33% rise from the equivalent quarter last year.
SO’s full-year Zacks Consensus Estimates are calling for earnings of $4.02 per share and revenue of $26.47 billion. These results would represent year-over-year changes of +10.14% and +4.8%, respectively.
Investors should also note any recent changes to analyst estimates for Southern Co. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Currently, Southern Co. is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Southern Co. is currently being traded at a Forward P/E ratio of 23.06. This signifies a premium in comparison to the average Forward P/E of 17.45 for its industry.
We can also see that SO currently has a PEG ratio of 3.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Utility – Electric Power industry stood at 2.77 at the close of the market yesterday.
The Utility – Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Southern Company (The) (SO) : Free Stock Analysis Report
