Southern Co (SO) Stock AnalysisSOStock AnalysisSouthern 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 currently priced at $88.25, with a forward P/E of 19.49, which suggests it is relatively fairly valued compared to its earnings potential. However, the RSI is at a low 19.85, indicating that the stock is oversold and may be due for a rebound. The company has a solid dividend yield of 3.28%, appealing for long-term investors, but the recent downgrades from analysts and the high debt-to-equity ratio of 178.50% present significant risks. Therefore, while there are positive indicators such as the contract with OpenAI and potential customer savings, the overall sentiment suggests holding rather than buying at this time.

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