Southern Co. (SO) closed the last trading day at $ 49.24, a + 0.24% gain over the previous trading session. The stock has exceeded the 0.07% daily gain of the S & P 500. Elsewhere, the Dow has lost 0.21%, while the Nasdaq, highly technology-driven, added 0.13%.

Prior to trading today, the shares of the electricity company had gained 6% over the past month. This exceeded the utility sector gain of 4.61% and the S & P 500 by 5.36% over this period.

SO expects to strengthen in the run-up to its next earnings release, which is expected to occur on February 20, 2019. The company is expected to earn EPS of $ 0.24, down 52.94% from the same quarter from the previous year. At the same time, our latest consensus estimates are for sales of $ 4.92 billion, down 12.62% from the same quarter last year.

Investors should also note recent changes made to the analyst's estimates for SOs. These revisions help to show the ever-changing nature of short-term business trends. In this spirit, we can consider revisions of positive estimates as a sign of optimism about the company's business prospects.

Our research shows that these estimation changes are directly related to short-term share prices. To take advantage of this, we have developed Zacks Rank, an exclusive model that takes into account these estimation changes and provides a usable scoring system.

The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of unaudited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. In the last 30 days, our consensus projection of earnings per share has remained stagnant. SO is currently ranked 2 in the category Zacks (Buy).

If we consider its valuation, SO has a P / E forward ratio of 16.32. This valuation marks a discount to the Forward Forward average of 18.5 in its sector.

Meanwhile, the PEG ratio of SO is currently 3.63. This popular measure is similar to the well-known P / E ratio, with the difference that the PEG ratio also takes into account the expected earnings growth rate of the company. Utilities – Electricity stocks hold on average a PEG ratio of 3.31 based on the closing prices of yesterday.

The Utilities Sector – Electric power is part of the utility sector. This group has a ranking of 73 in the Zacks industry, which places it in the top 29% of 250 industries and more.

The Zacks industry ranking is ranked from best to worst in terms of Zacks' average ranking of individual companies in each of these sectors. Our research shows that the 50% of the top rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all these stock transfer steps, and more, on Zacks.com.

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Southern Company (The) (The) (SO): Free Stock Analysis Report

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