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Southern Co. (SO) ended the recent trading session at $82.05, demonstrating a +0.22% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.12%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.23%.
Coming into today, shares of the power company had lost 0.01% in the past month. In that same time, the Utilities sector lost 6.93%, while the S&P 500 lost 3.45%.
The investment community will be closely monitoring the performance of Southern Co. in its forthcoming earnings report. The company is predicted to post an EPS of $0.53, indicating a 17.19% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.21 billion, showing a 2.66% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Southern Co. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. Southern Co. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Southern Co. is presently being traded at a Forward P/E ratio of 18.94. Its industry sports an average Forward P/E of 16.13, so one might conclude that Southern Co. is trading at a premium comparatively.
It is also worth noting that SO currently has a PEG ratio of 2.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Electric Power industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 44% echelons of all 250+ industries.