Southern Co. (SO) ended the recent trading session at $91.52, demonstrating a -1.22% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.27%.
Shares of the power company witnessed a gain of 11.02% over the previous month, beating the performance of the Utilities sector with its gain of 6.82%, and the S&P 500's loss of 0.2%.
Analysts and investors alike will be keeping a close eye on the performance of Southern Co. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. On that day, Southern Co. is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 6.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.47 billion, indicating a 8.32% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.59 per share and a revenue of $31 billion, indicating changes of +6.74% and +4.9%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Southern Co. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Southern Co. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Southern Co. is presently trading at a Forward P/E ratio of 20.17. This signifies a premium in comparison to the average Forward P/E of 17.18 for its industry.
It is also worth noting that SO currently has a PEG ratio of 2.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.64.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Southern Company (The) (SO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
