Southern Co (SO) Stock AnalysisSOSouthern Co

The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including battery energy storage projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas. It operates in the Utilities sector (ELECTRIC SERVICES industry).

Southern Company is a good buy right now due to its current price of $86.17, which is below the analyst price target of $104 from Citi, indicating a potential upside of 20.6%. Additionally, the company has a solid gross margin of 55.15% in Q2 2026, showing strong profitability. The main risk is its high debt-to-equity ratio of 178.50%, which could impact financial stability if not managed properly.

17 analysts cover SO: 5 rate it Buy, 8 Hold and 4 Sell. The average price target is 92.34.