SO Should I Buy
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Southern Co (SO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock demonstrates solid financial growth, positive congressional sentiment, and hedge fund buying interest, which outweighs the mixed analyst ratings and political/regulatory risks. Additionally, the technical indicators suggest a stable upward trend, making it a suitable choice for long-term investment.
The MACD is positive and expanding, indicating bullish momentum. RSI is at 74.954, which is neutral but leaning towards overbought territory. The stock is trading near its resistance level (R1: 92.524), with converging moving averages suggesting a stable trend. Key support is at 88.383, and resistance is at 93.803.
Hedge funds are significantly increasing their positions, with a 213.85% rise in buying over the last quarter.
Congress members have made 4 purchase transactions in the last 90 days, indicating strong confidence in the stock.
Financial performance in Q3 2025 shows revenue growth of 7.55% YoY, net income growth of 11.47% YoY, and EPS growth of 10.79% YoY.
The National Fish and Wildlife Foundation grants highlight the company's involvement in sustainable and environmentally friendly initiatives.
Insiders are selling, with a 157.49% increase in selling activity over the last month.
Analysts have mixed ratings, with some downgrades citing political and regulatory risks in Georgia.
Gross margin dropped by 4.49% YoY in Q3
The stock is trading near resistance levels, which may limit short-term upside potential.
In Q3 2025, Southern Co reported revenue growth of 7.55% YoY, net income growth of 11.47% YoY, and EPS growth of 10.79% YoY. However, gross margin declined by 4.49% YoY, indicating some pressure on profitability.
Analyst ratings are mixed. RBC Capital raised its price target to $105 but maintained a Sector Perform rating. Morgan Stanley and Wells Fargo downgraded the stock to Underweight, citing political and regulatory risks. The price targets range from $45 to $105, reflecting uncertainty in the stock's future performance.
