Is Wall Street Bullish or Bearish on The Southern Company Stock?
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.
On the date of publication, Aditya Sarawgi 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.