Atlanta, Georgia-based The Southern Company (SO) engages in the generation, transmission, and distribution of electricity. With a market cap of $91.2 billion, Southern operates as one of the largest utility companies in the U.S. and serves over 9 million customers in Mississippi, Alabama, Georgia, Tennessee, Virginia, and other states.
The utilities giant has outpaced the broader market over the past year. SO stock has soared 24.8% over the past 52-week period compared to the S&P 500 Index’s ($SPX) 22.6% returns during the same time frame. However, Southern’s 1.9% gains on a YTD basis have slightly lagged behind SPX’s 3.1% surge in 2025.
Zooming in further, Southern has also underperformed the sector-focused Utilities Select Sector SPDR Fund’s (XLU) 30.2% gains over the past year and a 3.6% surge in 2025.
Southern Company’s stock prices rose 1.9% after the release of its better-than-expected Q3 results on Oct. 31. The company reported a notable 4.2% year-over-year growth in revenues to $7.3 billion which surpassed analysts’ estimates by 2.1%. Meanwhile, due to higher utility revenues offsetting increased interest expense, depreciation and amortization, nonfuel operations and maintenance expenses, Southern’s operating income surged 7.2% year-over-year to $1.5 billion. Furthermore, its adjusted EPS of $1.43 for the quarter surpassed the Street’s expectations by 7.5%, boosting investor confidence.
Southern is set to announce its fiscal 2024 results later this month. Analysts expect its 2024 earnings to surge 11% year-over-year to $4.05. Moreover, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Among the 21 analysts covering the SO stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy,” one “Moderate Buy,” 12 “Hold,” and one “Strong Sell” rating.
This configuration is slightly less bullish than a month ago when eight analysts gave “Strong Buy” recommendations.
On Feb. 3, Mizuho Securities analyst Anthony Crowdel reiterated a “Hold” on SO, while raising the price target to $85.
Southern’s mean price target of $91.36 represents an 8.9% premium to current price levels, while its street-high target of $104 indicates a notable 24% upside potential.
