Valued at a market cap of $98.59 billion, The Southern Company (SO) engages in the generation, transmission, and distribution of electricity. Headquartered in Atlanta, Georgia, the company develops, constructs, acquires, owns, and manages power generation assets.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and SO fits right into that category, with its market cap exceeding this threshold. SO plays a major role in the utilities sector, distributing natural gas in Illinois, Georgia, Virginia, and Tennessee and maintaining approximately 78,500 miles of natural gas pipelines and 14 storage facilities.
Despite its strengths, the stock has fallen 6.1% from its 52-week high of $94.45, which it hit on Oct. 24. Shares of SO have climbed 2.9% over the past three months, significantly outperforming the broader Nasdaq Composite’s ($NASX) fall of 5.8% over the same time frame.
Moreover, SO shares have fallen marginally over the past six months but have surged 30.4% over the past 52 weeks. By contrast, $NASX has gained 8.3% over the past six months and 16.4% over the past 52 weeks.
SO has been trading above its 50-day and 200-day moving average since early February, indicating an uptrend.
SO shares jumped 1.6% with its fiscal 2024 Q4 release on Feb. 20. The company announced a 4.9% increase in its total operating revenues, which amounted to $6.34 billion. Moreover, its EPS amounted to $0.50.
SO’s top competitor in the utilities sector, Iberdrola, S.A. (IBDRY), is lagging behind, with its shares declining marginally over the past six months and 24.8% over the past 52 weeks.
Further, Wall Street analysts remain reasonably bullish on LOW’s prospects. The stock holds a consensus “Moderate Buy” rating from the 21 analysts covering it. The mean target of $92.19 suggests a potential upside of 4% from the current market prices.
