Southern Co. (SO) closed the latest trading day at $82.83, indicating a -0.85% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.
Shares of the power company witnessed a gain of 1.48% over the previous month, beating the performance of the Utilities sector with its gain of 0.06% and underperforming the S&P 500's gain of 1.67%.
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 is forecasted to report an EPS of $0.51, showcasing a 20.31% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.27 billion, up 3.78% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Southern Co. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. Southern Co. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Southern Co. has a Forward P/E ratio of 19.38 right now. This represents a premium compared to its industry's average Forward P/E of 16.83.
Also, we should mention that SO has a PEG ratio of 2.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SO's industry had an average PEG ratio of 2.51 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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