Southern Co. (SO) Falls More Steeply Than Broader Market: What Investors Need to Know
Southern Co. (SO) closed the most recent trading day at $69.11, moving -0.19% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Coming into today, shares of the power company had lost 1.31% in the past month. In that same time, the Utilities sector lost 6.48%, while the S&P 500 gained 3.05%.
The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. The company is scheduled to release its earnings on February 15, 2024. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 126.92% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.8 billion, indicating a 10.66% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Southern Co. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.68% lower within the past month. Right now, Southern Co. possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 17.28. This valuation marks a premium compared to its industry's average Forward P/E of 14.52.
One should further note that SO currently holds a PEG ratio of 4.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Electric Power industry had an average PEG ratio of 2.53 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 111, placing it within the top 45% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Southern Company (The) (SO) : Free Stock Analysis Report
