Southern Co. (SO) Rises Higher Than Market: Key Facts
Southern Co. (SO) closed the latest trading day at $71.42, indicating a +1.19% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.
Prior to today's trading, shares of the power company had lost 1.29% over the past month. This has was narrower than the Utilities sector's loss of 4.22% and lagged the S&P 500's gain of 3.52% in that time.
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 $0.62, reflecting a 138.46% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.76 billion, indicating a 10.07% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Southern Co. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.12% lower. Southern Co. is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 17.63. Its industry sports an average Forward P/E of 14.86, so one might conclude that Southern Co. is trading at a premium comparatively.
It's also important to note that SO currently trades at a PEG ratio of 4.41. 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 2.6 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 33% of all industries, numbering over 250.
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.
To follow SO in the coming trading sessions, be sure to utilize Zacks.com.
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Southern Company (The) (SO) : Free Stock Analysis Report
