NextEra Energy (NEE) has underperformed its industry over the past three months amid investor concerns about capital expenditure plans and potential share dilution. However, the company benefits from strong growth drivers including $94.1B in planned investments through 2030, expanding renewable capacity, and increasing electricity demand from data centers and AI. With a 12.28% ROE, consistent earnings beats, and a 3.16% dividend yield, NEE remains well-positioned for long-term growth. However, its 18.29X forward P/E valuation premium suggests new investors should wait for a more favorable entry point.

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.

With average U.S. electricity bills rising to $147 per month since 2021, an unconventional strategy involves investing in dividend-paying utility stocks to generate income that covers power costs. Investors would need approximately $60,000 invested in utility stocks yielding around 3.1% to generate the $1,764 needed annually to cover average electricity bills.

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.

The article highlights two utility stocks positioned to beat earnings expectations using the Zacks Earnings ESP (Expected Surprise Prediction) metric. Southern Co. (SO) has a +1.90% ESP with earnings expected on November 5, 2026, while NRG Energy (NRG) shows a stronger +20.98% ESP for the same date. Both stocks carry a Zacks Rank #3 (Hold) rating and are identified as having positive surprise potential based on recent analyst revisions.

Ademi LLP is investigating a data breach affecting Southern Company's utilities (Georgia Power, Alabama Power, and Mississippi Power) where customer personal information including names, addresses, phone numbers, emails, Social Security numbers, and financial account details were compromised. Affected customers may be entitled to compensation and are advised to monitor their accounts and consider credit monitoring services.

Southern Co. (SO) rose 1.23% to $88.11 on October 13, 2026, outperforming the broader market decline. The utility company is expected to report Q3 earnings on November 5, 2026, with anticipated EPS of $1.65 (up 3.13% YoY) and revenue of $8.34 billion (up 6.56% YoY). For full year 2026, analysts expect EPS of $4.59 and revenue of $31.04 billion. SO currently holds a Zacks Rank #3 (Hold) with a Forward P/E of 18.96, trading at a premium to its industry average of 17.35.

Duke Energy restored approximately 10,000 customers in North Florida following Hurricane Isaias, demonstrating the value of grid modernization investments. The company plans to deploy $103 billion during 2026-2030 to expand generation capacity and grid infrastructure, with forecasted 6.5% annual EPS growth. However, DUK trades at a premium valuation compared to industry peers and carries a Hold rating.

Southern Co. (SO) closed at $87.04, up 1.01%, outperforming the S&P 500. The company is scheduled to report earnings on November 5, 2026, with projected EPS of $1.65 (up 3.13% YoY) and revenue of $8.34 billion (up 6.56% YoY). SO currently holds a Zacks Rank #3 (Hold) with a Forward P/E of 18.77, trading at a premium to its industry average.

Edelson Lechtzin LLP is investigating a class action lawsuit against Southern Company following a data breach affecting approximately 400,000 customer accounts across Georgia Power, Alabama Power, and Mississippi Power. An unauthorized third party accessed limited customer account information including names, addresses, phone numbers, email addresses, and partial Social Security numbers. The law firm is offering free case evaluations to affected customers.

The Fidelity MSCI Utilities Index ETF (FUTY) is a low-cost passively managed fund with a 0.08% expense ratio and $2.18 billion in assets. However, it has received a Zacks ETF Rank of 4 (Sell) and is not recommended for investors seeking utilities exposure. The fund has underperformed year-to-date, declining 1.81%, with better alternatives available such as Vanguard Utilities Index Fund ETF Shares (VPU) and State Street Utilities Select Sector SPDR ETF (XLU).