Southern Co. (SO) closed the most recent trading day at $61.52, moving -0.65% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.56%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 1.67%.
Coming into today, shares of the power company had gained 4.91% in the past month. In that same time, the Utilities sector gained 2.22%, while the S&P 500 lost 1.22%.
Wall Street will be looking for positivity from SO as it approaches its next earnings report date. This is expected to be October 30, 2019. On that day, SO is projected to report earnings of $1.14 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, down 4.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $21.77 billion, which would represent changes of -0.98% and -7.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.51% higher within the past month. SO is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SO is holding a Forward P/E ratio of 20.35. Its industry sports an average Forward P/E of 21.61, so we one might conclude that SO is trading at a discount comparatively.
It is also worth noting that SO currently has a PEG ratio of 4.52. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.97 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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