Southern Co. (SO) Stock Sinks As Market Gains: Here's Why

The latest trading session saw Southern Co. (SO) ending at $91.30, denoting a -0.57% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.87%.The power company's shares have seen an increase of 2.15% over the last month, surpassing the Utilities sector's gain of 1.94% and the S&P 500's loss of 5.28%.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 May 1, 2025. The company's earnings per share (EPS) are projected to be $1.17, reflecting a 13.59% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.93 billion, indicating a 4.3% upward movement from the same quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.30 per share and a revenue of $27.43 billion, indicating changes of +6.17% and +2.63%, respectively, from the former year.Investors should also pay attention to any latest changes in analyst estimates for Southern Co. 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.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.13% rise in the Zacks Consensus EPS estimate. Southern Co. presently features a Zacks Rank of #3 (Hold).Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 21.35. For comparison, its industry has an average Forward P/E of 18.5, which means Southern Co. is trading at a premium to the group.It's also important to note that SO currently trades at a PEG ratio of 3.29. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks