Headquartered in Atlanta, Georgia, The Southern Company (SO) is an energy provider known for its commitment to sustainable and reliable energy solutions. Valued at $94.54 billion by market cap, Southern Company is known for its innovative contributions to electricity generation, distribution, and renewable energy. Its subsidiaries, including Georgia Power and Alabama Power, have transformed how energy is produced and consumed across the southeastern U.S., providing essential services to millions of customers.
Shares of SO have outperformed the broader market over the past year. The stock has gained 25.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024 alone, the stock has gained 23.3%, compared to SPX's 11.5% gains on a YTD basis.
Narrowing the focus, SO’s outperformance is also evident compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained 14.1% over this period. Also, the stock's YTD gains outshine the ETF’s 15.8% returns over the same time frame.
On Aug. 1, SO reported its Q2 results. Revenue was $6.46 billion, beating the analysts' expectation of $6.26 billion. The company’s net income was $1.20 billion, and its EPS was $1.09, higher than Wall Street estimates of $0.91. The stock gained 4.9% on the day it released earnings.
For the current fiscal year, ending in December, analysts expect SO’s EPS to grow 9.9% to $4.01 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering SO stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, with 10 suggesting a “Strong Buy.”
On Aug. 2, Andrew Weisel from Scotiabank maintained a “Buy” rating on Southern Company with a price target of 87, implying a potential marginal upside from current levels.
The mean price target is $81.25, which indicates that the stock trades at a premium. The Street-high price target of $94 suggests an upside potential of 8.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
