The Southern Company (SO) Low Quarter Sets In as EPS turns Negative

Friday, Dec 15 tick up came in at $246.97 M and tick down at $34.23 Million led to up down ratio of 7.21xyou might want to note that Total Money flow for the day came in positive $212.74 MN , for the investor in you block trades occurred at $214.48 MN as fund and institutions bought through out the day on the dip and together with block ratio of 29.67x of which upticks contributed $221.97 M while down ticks bought in $7.48 M , and as traders bought in to weakness and they expect price to reverse and move against the trader..

Company writing down the value of a major asset can be the reason analyst expecting a dip in current year. At the same time, higher quick ratio 0.7 indicates lower liquidity strength in near term, we believe The Southern Company low liquidity ratio has been a worry to directors representing low stock in current assets .

Current company is trading overpriced and is evident that investors are over valuing the company , but given its earnings prices seem to be fare, however price-earnings of 92.45 does not seem to have potential for high growth .

Still the business looks pretty high priced at the moment as Utilities sector PE comes at 15.37 lower than company PE . Compared to its peers in Electric Utilities industry , volatility has been much low., supported by company’s outstanding shares currently at $51707.14 ML .

Company Market-to-Book ratio 2.14 represents a huge plus with strong fundamentals .. From the The Southern Company graph RSI is moving above the horizontal 50.14 reference level indicating a neutral indicator , asset moving through RSI signifies change of pattern in no to side way trend and its best to be traded cautiously.

The Southern Company current price levels indicate declines of under -4.11% from the 52 week high , this is normal market volatility . As the stocks near 52 week high investors may show increased interest as price nears either the high or the lows.

Company is on track for potential growth of 16.91, need to understand that analyst estimates can often miss . With projected PE of 16.91, The Southern Company is set for lower earnings per share for the next 12 months .

Firm market price to street firms projected growth in earnings per share is above average at 35.72 and compared to its expected growth , Price to earnings is high, in contrary the business might fall behind in growth rate to justify its P /Ejust because business PEG

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