Yahoo Finance Why Southern Co. (SO) Outpaced the Stock Market Today
Southern Co. (SO) closed the latest trading day at $78.21, indicating a +0.24% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.49%.
The power company's shares have seen an increase of 0.62% over the last month, surpassing the Utilities sector's loss of 3.23% and falling behind the S&P 500's gain of 3.22%.
The upcoming earnings release of Southern Co. will be of great interest to investors. The company is forecasted to report an EPS of $0.90, showcasing a 13.92% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $6.23 billion, showing an 8.34% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4 per share and revenue of $27.35 billion. These totals would mark changes of +9.59% and +8.31%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Southern Co. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.22% rise in the Zacks Consensus EPS estimate. Southern Co. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Southern Co. currently has a Forward P/E ratio of 19.52. This signifies a premium in comparison to the average Forward P/E of 14.94 for its industry.
Also, we should mention that SO has a PEG ratio of 2.81. 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 2.52 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 33% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Southern Company (The) (SO) : Free Stock Analysis Report
