SO

Southern Company (SO) has gained 2.8% over the past month, outperforming the S&P 500's 1.4% return. The company is rated Zacks Rank #3 (Hold) with expected earnings growth of 6.3% for the current quarter and 6.7% for the fiscal year.

Revenue is projected to grow 5-6.1% in the coming periods. The stock trades at par with peers with a C valuation grade, suggesting it may perform in line with the broader market in the near term.

The article explains how to use the Zacks Earnings ESP (Expected Surprise Prediction) tool to identify stocks likely to beat earnings estimates. It highlights that combining positive ESP with a Zacks Rank #3 or stronger resulted in positive earnings surprises 70% of the time with ~28% average annual returns. Two utilities stocks are featured as examples: Dominion Energy with a +1.03% ESP and Southern Co. with a +1.43% ESP, both holding #3 (Hold) ratings and positioned for potential earnings beats.

Southern Co. (SO), a utility company in the electric power industry, has demonstrated a consistent pattern of beating earnings estimates over the last two quarters with an average surprise of 10.49%. The company's positive Earnings ESP of +1.90% combined with its Zacks Rank #3 (Hold) suggests another potential earnings beat ahead of its November 5, 2026 report. Historical data shows stocks with this combination beat consensus estimates nearly 70% of the time.