Southern saw an improvement in its IBD SmartSelect Composite Rating Friday, from 88 to 96.
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The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The best stocks tend to have a 95 or better grade as they start a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Southern broke out earlier, but has fallen back below the prior 93.48 entry from a saucer with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form.
One weak spot is the company's 72 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
In Q1, the company posted 19% EPS growth. Sales growth climbed 17%, up from 5% in the prior quarter. The company has now posted increasing growth in each of the last two quarters.
Southern holds the No. 5 rank among its peers in the Utility-Electric Power industry group. OGE Energy is the top-ranked stock within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
