Why Southern Co. (SO) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth potential, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - There are typically over 800 top-rated stocks available, making it essential to utilize Style Scores for effective selection [8] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended, while 3 (Hold) stocks should also have A or B scores for potential upside [9][10] Company Spotlight: Southern Company - Southern Company, based in Atlanta, GA, is a major utility provider in the U.S., serving approximately nine million customers through its electric and natural gas distribution units [11] - Currently rated 3 (Hold) with a VGM Score of B, Southern Company is also appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 5.9% for the current fiscal year [12] - Recent upward revisions in earnings estimates by six analysts for fiscal 2025 have increased the Zacks Consensus Estimate to $4.29 per share, with an average earnings surprise of +3% [12]