Southern Co. (SO) ended the recent trading session at $85.51, demonstrating a +1.1% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.98%.

Prior to today's trading, shares of the power company had gained 4.01% over the past month. This has outpaced the Utilities sector's gain of 1.57% and the S&P 500's gain of 2.07% 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 20, 2025. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 20.31% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.27 billion, up 3.78% from the year-ago period.

Any recent changes to analyst estimates for Southern Co. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. As of now, Southern Co. holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Southern Co. is currently exchanging hands at a Forward P/E ratio of 19.62. This indicates a premium in contrast to its industry's Forward P/E of 17.1.

It is also worth noting that SO currently has a PEG ratio of 2.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.56 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.

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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