Latest news with #SouthernCo.
Yahoo
7 days ago
- Business
- Yahoo
Southern Co. (SO) Exceeds Market Returns: Some Facts to Consider
Southern Co. (SO) ended the recent trading session at $95.85, demonstrating a +1.12% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq decreased by 0.39%. Heading into today, shares of the power company had gained 4.54% over the past month, outpacing the Utilities sector's gain of 1.55% and lagging the S&P 500's gain of 5.88%. The investment community will be paying close attention to the earnings performance of Southern Co. in its upcoming release. The company is slated to reveal its earnings on July 31, 2025. The company's upcoming EPS is projected at $0.98, signifying a 10.09% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.77 billion, up 4.8% from the prior-year quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $28.46 billion. These totals would mark changes of +5.68% and +6.51%, respectively, from last year. Any recent changes to analyst estimates for Southern Co. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Southern Co. is currently a Zacks Rank #3 (Hold). In terms of valuation, Southern Co. is currently trading at a Forward P/E ratio of 22.17. This indicates a premium in contrast to its industry's Forward P/E of 18.52. Investors should also note that SO has a PEG ratio of 3.28 right now. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.67 based on yesterday's closing prices. The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
Southern Co. (SO) Outpaces Stock Market Gains: What You Should Know
Southern Co. (SO) closed at $90.67 in the latest trading session, marking a +1.53% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 0.89%, and the Nasdaq, a tech-heavy index, added 0.94%. Shares of the power company witnessed a loss of 0.38% over the previous month, beating the performance of the Utilities sector with its loss of 2.43%, and underperforming the S&P 500's gain of 0.5%. Investors will be eagerly watching for the performance of Southern Co. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.99, indicating a 9.17% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.76 billion, up 4.66% from the prior-year quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $28.23 billion, indicating changes of +5.68% and +5.64%, respectively, compared to the previous year. Investors might also notice recent changes to analyst estimates for Southern Co. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Southern Co. is holding a Zacks Rank of #3 (Hold) right now. Looking at its valuation, Southern Co. is holding a Forward P/E ratio of 20.88. This indicates a premium in contrast to its industry's Forward P/E of 17.76. It is also worth noting that SO currently has a PEG ratio of 3.19. 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 average PEG ratio for the Utility - Electric Power industry stood at 2.58 at the close of the market yesterday. The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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Business Standard
18-06-2025
- Business
- Business Standard
Nuclear-powered ships may reshape trade with cleaner, faster transport
The commercial shipping industry is chasing a novel carbon-free propulsion technology as it pursues a lofty climate goal: nuclear power. Shipping accounts for more planet-warming greenhouse gas emissions than Japan. The sector is responsible for 3 per cent of all emissions globally, but the international body overseeing it has pledged to cut climate pollution by as much as 30 per cent by 2030 and eliminate it by 2050. Nuclear power — long a source of propulsion for the military — is a tantalizing solution for an industry largely reliant on highly polluting bunker fuel, though it will likely prove hard to insure. While there are clean fuels in development like ammonia, the dearth of affordable options to power massive cargo ships has created an almost 'insurmountable problem,' according to Mikal Boe, chief executive officer of Core Power Ltd. In a bid to address it, his company is leading an effort that includes HD Korea Shipbuilding & Offshore Engineering and utility Southern Co. to develop commercial vessels powered by carbon-free nuclear reactors. There are significant technical and regulatory challenges and higher upfront costs, but Boe said the approach has the potential to make ships faster and cheaper to operate while also being able to carry more cargo. 'This is the solution to one of the biggest conundrums,' he said. 'If we could do this right now, there would be an enormous pent-up demand.' The Core-led group is focused on getting a fission-powered vessel in the water by 2035. They're planning to use a reactor from TerraPower LLC, a climate tech company backed by billionaire Bill Gates, which expects to begin testing the design in 2029. Southern completed last year the first new nuclear power plant in the US in decades and will bring its expertise to bear. The effort comes as nuclear power experiences a revival on land as well. Artificial intelligence is increasing energy demand, and tech companies and governments are turning to both traditional nuclear and betting on more futuristic forms like fusion and the small modular reactors that Core is looking to use. The first oceangoing reactor was deployed on a US submarine in 1955. A handful of civilian vessels were developed starting with the NS Savannah in 1959, but most eventually retired due to high costs and technical issues. Today, there are about 160 vessels worldwide that rely on fission. The technology is primarily used in military vessels, especially aircraft carriers and submarines, as well as Russian icebreakers in the Arctic. However, the commercial shipping industry's emissions targets have prompted companies to reevaluate the idea, according to Jose Esteve, offshore gas and power market leader for Bureau Veritas SA, a French product-testing firm. Some companies are exploring the use of carbon-free fuels like ammonia while others are testing the addition of sails. AP Moller-Maersk A/S, the Danish container giant, is already operating container ships that run on low-carbon methanol, and other companies are using hydrogen to power vessels. But the supply chains to produce these fuels are still developing, and Esteve is skeptical they'll be ready when big ships start requiring them by the ton at every port. 'Those alternative fuels will not be there when we need them,' he said. 'Not at a cost that makes them a viable alternative.' He's more confident that the nuclear industry will be able to deliver reactors to transform the global fleet. Esteve expects to see the first ships powered by atomic energy tested by the middle of the next decade, with wider usage by the late 2030s. Still, transitioning to a nuclear-powered fleet will require some significant changes to the regulatory landscape. For starters, commercial insurance companies won't provide coverage for ship that runs on fission because the potential cost of a nuclear accident is simply too high. Without insurance, few civilian ports would allow a nuclear-powered cargo ship to dock. That's not an issue for naval vessels that can dock in military harbors, but it makes the technology a non-starter for commercial shipping. There are also significant safety and security concerns, according to George Moore, a scientist-in-residence at the Middlebury Institute of International Studies in Monterey, California. While the fuel expected to be used for shipping doesn't have the high concentration of uranium needed for a weapon, it's still radioactive and commercial ships would be vulnerable to piracy or sabotage. That raises the specter of an intentional nuclear incident. Commercial ships are also typically less durable than naval vessels, increasing the risk of an accidental radiation leak due to a collision. While regulatory agencies could develop policies to address some of those concerns, Moore said the industry seems more focused on developing the technology and the potential market. 'The industry hasn't looked at all these issues,' which makes developing ships a risky idea, said Moore. At a meeting this month, the International Maritime Organization will be discussing potential changes to the safety code for nuclear merchant ships. The group is also likely to vote in October on whether to impose financial penalties on some polluting vessels. New nuclear technologies may reduce some of the risk, Moore said. Navy ships typically used pressurized water reactors, which circulate hot water under high pressure. If there were an accident, that pressure means radioactive material could be dispersed over a significant distance, enough to imperil much of a port and any ships in the area. But TerraPower and other companies are developing a new generation of reactors to operate at normal pressure. That would help reduce the danger area, known as the emergency planning zone, in the case of an accident. The goal, said Boe, is an emergency planning zone that's no bigger than the ship. If these issues can be addressed, a nuclear-powered ship would offer several advantages over vessels that burn fuel, even of the carbon-free variety. Most ships today sail well below their maximum speed, often as much as 30 per cent to 40 per cent slower than their engines are rated, which lowers emissions and reduces operating expenses by burning less fuel, said Boe. But nuclear ships would have no emissions, and they wouldn't need to pay for fuel, allowing them to travel at top speed. This would mean faster deliveries and higher revenue for shipping companies. Plus, big ships need big fuel tanks, which can take up precious space. That wouldn't be necessary on a ship with a reactor, and Boe estimates there would be about 10 per cent more space for cargo. Nuclear-powered ships could also reduce downtime by cutting out the need to refuel. The typical container ship spends a total of about a month of every year just refueling, according to Sangmin Park, a vice president with HD Korea Shipbuilding and Offshore Engineering, who's leading the company's effort to develop a nuclear ship. The reactors under consideration for cargo ships may have enough nuclear fuel to last for decades, which is essentially the entire expected lifecycle of the vessel. Shipowners will also save money by not buying fuel, though the payoff will take some time because the initial costs will be higher. Nuclear systems are pricey, and Park estimates that a new ship would cost double or perhaps even triple the price of a standard cargo ship. But over an expected 25-year life of a vessel, the total cost would be less than half, he estimates. 'The nuclear-powered ship is good for general emissions, but it's also good for the economy in the long term,' Park said.
Yahoo
12-06-2025
- Business
- Yahoo
Southern Co. quietly makes next-gen nuclear fuel history in Georgia
Over a two-year span, the Southern Co.'s Plant Vogtle power complex repeatedly made history, potentially changing the entire economics of the nuclear industry with a new uranium fuel. In 2023, Georgia's Vogtle brought online the nation's first new nuclear reactor built from scratch in more than three decades. Last year, a second new reactor turned on, transforming Vogtle into the nation's second-largest power station. Now, one of Vogtle's legacy reactors quietly marked another major nuclear milestone that experts say could shake up the rules for the industry. Engineers loaded the old reactor with a new type of uranium fuel enriched above the traditional threshold and designed to withstand all kinds of accidents, last longer without refueling, and generate less radioactive waste. In April, the reactor powered up to full capacity, becoming the first commercial reactor in the U.S. to run on next-generation fuel. It's the first time in U.S. history a commercial reactor is running on fuel enriched above 5%. That may not sound like much, but many industry analysts recognize the redesigned uranium fuel as a monumental step change for the nuclear sector. 'This is enabling us to get more out of those existing reactors than in the past,' Jonathan Chavers, Southern's director of nuclear fuel and analysis, told Fortune exclusively. 'It's a significant game changer for the industry.' There's a lot of excitement in the nuclear world now with the Trump administration promising to remove nuclear regulatory hurdles and new nuclear technologies ready to take hold, including small modular reactors that use coolants other than water. These are considered fourth-generation models in a world where most reactors in use are second or third gen. Asked whether the leap from traditional uranium fuel to the pellets Southern (ranked 161 in the Fortune 500) rolled out this spring represented the same jump in technology from third to fourth gen, Ken Petersen, the former president of the American Nuclear Society, laughed. 'This is like going from a Generation I to a Generation IV,' said Petersen, a retired fuel executive from Constellation, the nation's largest nuclear utility. 'It's really breathtaking. We're breaking barriers.' What's not clear is how widely adopted the new fuel could be in the short term with existing nuclear facilities other than Vogtle. Companies may not want to make the financial investment for older reactors. Brett Rampal, a nuclear engineer and consultant who previously worked on core design at Westinghouse, called the new fuel program a 'big waste of time'—for now. 'As a guy who sold fuel to existing reactor operators, it didn't matter what I was selling to my customer or utility. It didn't matter what improvement to the fuel there was,' he said. 'The bottom line they asked me is, 'You're going to sell this to me at the same price, right?' Why would we sell you new and improved fuel for the same price? Then they'd say, 'We're not interested.'' The nuclear fuel that goes into reactors is not the same uranium that comes out of the ground. Once mined, uranium ore is crushed, sorted and compacted into yellowcake, which is then converted into uranium hexafluoride through a chemical process. That grayish solid material is put through a centrifuge to enrich a small percentage of the uranium into uranium-235, the unstable isotope that can split to release energy in the form of heat. At the end of the enrichment process, gummy bear-sized pellets of fuel are loaded into fuel assemblies like PEZ candy in a dispenser and placed into a reactor that can spark the chain reaction called atom splitting, and the resulting heat is harnessed. At that point, a nuclear power plant functions just like the coal-fired stations that came before it: the heat turns water into steam that spins turbines and generates electricity. Since the dawn of the nuclear industry in the U.S., the enrichment process has capped the amount of U-235 present in the fuel at 5%—an artificial industry threshold set decades ago and retained out of what experts said was a sense of inertia in an industry whose tight rules offered little room for innovation. All the atomic energy contained in the other 95% of the uranium that isn't split contributes to the leftover radioactive waste at the end of the fuel cycle. In 2012, the year after the Fukushima disaster crushed public support for nuclear power, Congress established the Department of Energy's accident-tolerant fuel program. At the time, Plant Vogtle was preparing to start construction on the first Westinghouse AP1000, a new generation of reactor with safety features that made a meltdown like the one in Japan almost impossible. The fuel program promised to make uranium pellets themselves that much safer. The pellets are 'doped,' meaning the uranium blend in the nuggets of fuel is modified with materials such as chromium oxide and alumina to improve performance under high heat. In other words: all the highly radioactive materials that form during the fission process are better contained in the new fuel. But the next breakthrough in Southern's novel fuel is newer. The actual cladding in the fuel assemblies—the part that you load the candy into in a PEZ dispenser—is now coated in a zirconium alloy that can withstand more intense heat. 'That helps the rod protect itself in a high-temperature environment,' Chavers said. '[Let's] say a Fukushima-style event occurred at a nuclear reactor. The coating would protect the rod for an additional amount of time so we could get cooling into the core.' With those features in place, the reactor can run hotter, allowing it to burn up more U-235. That means the new fuel can be enriched higher—up to 8%. It may not sound like a lot, but the effect is nuclear reactors that must be refueled every 18 months can instead run for 24 months or longer without taking costly breaks to swap out the rods of uranium pellets. Still, of all the major commercial nuclear operators Fortune contacted to ask about Southern's breakthrough, none indicated immediate plans to buy the new fuel. While the new fuel could be commercially manufactured relatively soon, commercial versions of the so-called cladding are likely at least a decade away, according to Southern. Pacific Gas & Electric, the owner of California's last nuclear plant Diablo Canyon, said it 'remained focused on operating to 2030 with our current fuel design.' New Jersey-based PSEG declined to comment. The Tennessee Valley authority said only that it 'supports accident-tolerant fuels developments' and believes 'Southern's achievement is a good step towards bringing higher assay fuels to market.' Xcel Energy called the milestone 'a significant achievement that will enhance safety and reliability,' but declined to say whether it would buy the fuel. On the other hand, Virginia's Dominion Energy said it was 'considering using [fuel] similar to what's being piloted by Southern.' And, while Baltimore-based Constellation said it had 'no current timeline for the large-scale use of newer fuels' in its reactors, the nuclear utility said, 'We would deploy these newer fuels in our reactors once they make the transition from research and development to a commercial offering.' New nuclear plants won't come online anytime soon, so maximizing existing facilities is critical. 'If you look at U.S. capacity factors, we're higher than anybody else,' Petersen said. 'We're pushing up against those limits, and that's why we need this additional enrichment.' This story was originally featured on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
The Southern Company (SO) Upgraded at Jefferies on Promising Growth Prospects
Jefferies upgraded The Southern Company (NYSE:SO) to Buy from Hold on solid growth outlook, while adjusting the price target from $102 to $100 on June 5. According to the analysts, Southern Co.'s possible success in future requests for proposals (RFPs) could lead to considerable rate base growth, outperforming industry peers. A Southern Co. subsidiary, Georgia Power, is projected to obtain over 70% of an 8.5 gigawatt project, corresponding to nearly $12.9 billion in extra capital spending. A technician working with a control panel in a gas distribution center. Southern Co.'s earnings per share (EPS) are projected to climb at a compound annual growth rate (CAGR) of 7.2% until 2029, and increase to 7.9% through 2035, supported by the forecasted business growth. Analysts added that the regulatory environment is now stable given the settlement of a rate case, and financing is already underway, which limits execution risk. Jefferies reinforced the higher earnings potential at Southern Co. after 2027, which supports the rating adjustment despite the stock trading at a 15% premium. The Southern Company (NYSE:SO) operates as an integrated energy provider, managing electricity generation and natural gas distribution across major US markets. The company oversees extensive pipeline infrastructure and storage, caters to retail and wholesale customers, and provides advanced energy solutions like micro-grids and digital communications. While we acknowledge the potential of SO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
