The Southern Company (SO) And Cypress Semiconductor Corporation (CY) Might See A Big Erosion In Value

2 analysts out of 20 Wall Street brokerage firms rate The Southern Company (NYSE:SO) as a Buy, while 5 see it as a Sell. The rest 13 describe it as a Hold. SO stock traded higher to an intra-day high of $55.27. At one point in session, its potential discontinued and the price was down to lows at $54.68. Analysts have set SO’s consensus price at $52.38, effectively giving it a -5.02% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $59 (up 6.98% from current price levels). SO has a 13.5% ROE, lower than the 17.09% average for the industry. The average ROE for the sector is 11.86%.

It is expected that in Jun 2019 quarter SO will have an EPS of $0.71, suggesting a -11.25% growth. For Sep 2019 is projected at $1.23. It means that there could be a 7.89% growth in the quarter. Yearly earnings are expected to rise by -1.3% to about $3.03. As for the coming year, growth will be about 4.29%, lifting earnings to $3.16. RSI after the last trading period was 61.8. SO recorded a change of -0.42% over the past week and returned 7.03% over the last three months while the SO stock’s monthly performance revealed a shift in price of 2.83%. The year to date (YTD) performance stands at 25.57%, and the bi-yearly performance specified an activity trend of 15.96% while the shares have moved 26.96% for the past 12 months.

The Southern Company (SO) currently trades at $55.15, which is lower by 0% its previous price. It has a total of 1.05 billion outstanding shares, with an ATR of around 0.72. The company’s stock volume dropped to 3.44 million, worse than 4.29 million that represents its 50-day average. A 5-day decrease of about -0.42% in its price means SO is now 25.57% higher on year-to-date. The shares have surrendered $43404.85 since its $55.95 52-week high price recorded on 7th of June 2019. Overall, it has seen a growth rate of 26.96 over the last 12 months. The current price per share is $12.65 above the 52 week low of $42.50 set on 26th of December 2018.

The Southern Company (NYSE:SO)’s EPS was $0.7 as reported for the March quarter. In comparison, the same quarter a year ago had an EPS of $0.88. That means that its growth in general now stands at -20%. Therefore, a prediction of $0.72 given by the analysts brought a negative surprise of -3%. SO March quarter revenue was $5.41 billion, compared to $6.37 billion recorded in same quarter last year, giving it a -15% growth rate. The company’s $-0.96 billion revenue decline that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Cypress Semiconductor Corporation (NASDAQ:CY) shares appreciated 0.05% over the last trading period, taking overall 5-day performance up to -0.05%. CY’s price now at $22.15 is greater than the 50-day average of $17.36. Getting the trading period increased to 200 days, the stock price was seen at $14.99 on average. The general public currently hold control of a total of 363.03 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 365.95 million. The company’s management holds a total of 0.5%, while institutional investors hold about 83.6% of the remaining shares. CY share price finished last trade 19.76% above its 20 day simple moving average and its upbeat gap from 200 day simple moving average is 47.99%, while closing the session with 28.6% distance from 50 day simple moving average.

Cypress Semiconductor Corporation (CY) shares were last observed trading -1.24% down since June 03, 2019 when the peak of $22.43 was hit. Last month’s price growth of 39.31% puts CY performance for the year now at 74.14%. Consequently, the shares price is trending higher by 88.51%, a 52-week worst price since Oct. 24, 2018. However, it is regaining value with 69.86% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $22.06 and $22.11. The immediate resistance area is now $22.2 Williams’s %R (14) for CY moved to 3.84 while the stochastic %K points at 96.

CY’s beta is 1.85; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $0.99 per share from its yearly profit to its outstanding shares. Its last reported revenue is $539 million, which was -7% versus $582.24 million in the corresponding quarter last year. The EPS for Mar 19 quarter came in at $0.27 compared to $0.27 in the year-ago quarter and had represented 0% year-over-year earnings per share growth. CY’s ROA is 10.2%, lower than the 18.03% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 10.87%.

Estimated quarterly earnings for Cypress Semiconductor Corporation (NASDAQ:CY) are around $0.19 per share in three months through June with $0.24 also the estimate for September quarter of the fiscal year. It means the growth is estimated at -29.63% and -31.43%, respectively. Analysts estimate full-year growth to be -23.28%, the target being $0.89 a share. The upcoming year will see an increase in growth by percentage to 12.36%, more likely to see it hit the $1 per share. The firm’s current profit margin over the past 12 months is 15%. CY ranks lower in comparison to an average of 24.44% for industry peers; while the average for the sector is 15.29%.