In the latest close session, Southern Co. (SO) was up +1.61% at $94.93. This change outpaced the S&P 500’s 1.44% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Shares of the power company witnessed a loss of 1.18% over the previous month, beating the performance of the Utilities sector with its loss of 1.28%, and underperforming the S&P 500’s gain of 0.08%.
The upcoming earnings release of Southern Co. will be of great interest to investors. The company is expected to report EPS of $1.01, up 10.99% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.39 billion, up 5.94% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.58 per share and a revenue of $31.36 billion, representing changes of +6.51% and +6.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Southern Co. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Southern Co. presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Southern Co. is currently exchanging hands at a Forward P/E ratio of 20.41. This valuation marks a premium compared to its industry average Forward P/E of 18.11.
Meanwhile, SO’s PEG ratio is currently 2.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. By the end of yesterday’s trading, the Utility – Electric Power industry had an average PEG ratio of 2.67.
The Utility – Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 37% of all industries, numbering over 250.
