Southern Co. (SO) closed at $90.54 in the latest trading session, marking a +0.18% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.31%.

The power company's stock has climbed by 5.61% in the past month, exceeding the Utilities sector's gain of 1.38% and the S&P 500's loss of 7.69%.

The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. On that day, Southern Co. is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 12.62%. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 4.3% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.31 per share and revenue of $27.43 billion, which would represent changes of +6.42% and +2.63%, respectively, from the prior year.

Any recent changes to analyst estimates for Southern Co. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.58% lower. Southern Co. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Southern Co.'s current valuation metrics, including its Forward P/E ratio of 20.99. This represents a premium compared to its industry's average Forward P/E of 18.27.

It's also important to note that SO currently trades at a PEG ratio of 3.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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