Southern Company Stock: Is SO Outperforming the Utility Sector?
Valued at a market cap of $101.3 billion, The Southern Company (SO) is a leading utility provider headquartered in Atlanta, Georgia. The company generates, transmits, and distributes electricity and natural gas, while also developing, acquiring, and managing power generation assets, including a growing portfolio of renewable energy projects.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and SO fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated electric industry. The company’s strength lies in its diversified energy portfolio and strong regional presence. Additionally, it stands out for its long-term investments in renewable energy and nuclear power projects, positioning it well for the transition to clean energy.
This utility giant is currently trading 5% below its 52-week high of $96.44, reached on Jul. 22. Shares of SO have gained 2.3% over the past three months, outperforming the Utilities Select Sector SPDR Fund’s (XLU) 1.7% return during the same time frame.
Moreover, on a YTD basis, SO is up 11.4%, outpacing XLU’s 10.8% rise. However, shares of SO have gained 3.1% over the past 52 weeks, lagging behind XLU's 10% uptick over the same time period.
To confirm its bullish trend, SO has been trading above its 200-day moving average over the past year, with slight fluctuations. However, it has been trading below its 50-day moving average since late August.
On Jul. 31, SO delivered its Q2 results. The company’s revenue improved 7.9% year-over-year to $7 billion, handily exceeding consensus estimates by 6.3%. Moreover, its adjusted EPS of $0.92 also surpassed analyst expectations. However, earnings were still down 16.4% compared to the year-ago quarter, which might have raised investor concerns over profitability, leading to a marginal drop in its share price following the earnings release.
SO has underperformed its rival, Duke Energy Corporation (DUK), which soared 4.9% over the past 52 weeks and 12.8% on a YTD basis.
Given SO’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 20 analysts covering it, and the mean price target of $98.38 suggests a 7.3% premium to its current price levels.
On the date of publication, Neharika Jain 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.
