The Southern Company: Financial Performance and Market Position

The Southern Company (SO) holds a market capitalization of $98.59 billion and is involved in the generation, transmission, and distribution of electricity. Based in Atlanta, Georgia, the company develops, constructs, acquires, owns, and manages various power generation assets.

Categorized as a “large-cap” stock, SO clearly fits the profile with its substantial market cap. The company plays a critical role in the utilities sector, distributing natural gas across Illinois, Georgia, Virginia, and Tennessee. SO maintains around 78,500 miles of natural gas pipelines and operates 14 storage facilities.

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Despite its solid fundamentals, SO has experienced a drop of 6.1% from its 52-week peak of $94.45, reached on October 24. In contrast, shares have increased by 2.9% over the past three months. This outperformance stands notable against the broader Nasdaq Composite’s ($NASX) decline of 5.8% during the same period.

Over the past six months, SO shares have decreased slightly, yet they have risen an impressive 30.4% over the last 52 weeks. In comparison, the $NASX has seen gains of 8.3% over six months and 16.4% annually.

Since early February, SO has traded above both its 50-day and 200-day moving averages, signaling an upward trend in its stock performance.

On February 20, following its fiscal 2024 Q4 results, SO shares gained 1.6%. The company reported a 4.9% increase in total operating revenues, reaching $6.34 billion, while its earnings per share (EPS) stood at $0.50.

In the competitive landscape, SO faces pressure from Iberdrola, S.A. (IBDRY), which has seen its shares decline slightly over the past six months and tumble by 24.8% over the past year.

Wall Street analysts appear optimistic about SO’s future. The stock enjoys a consensus “Moderate Buy” rating based on a survey of 21 analysts. The average price target of $92.19 indicates a potential upside of 4% from current market levels.

On the date of publication, Kritika Sarmah 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.