Stock Price & Analysis

Based on the provided data, here's a concise analysis for Southern Company (SO):

Technical Analysis The stock is currently trading at $83.75, showing a relatively neutral RSI of 53.62. The price is hovering above its 20-day moving average of $82.39, indicating short-term bullish momentum.

Recent Events Georgia Power, Southern Company's largest subsidiary, has demonstrated strong operational efficiency by restoring power to over 230,000 customers following Winter Storm Cora. The company's implementation of "smart grid" technologies and pre-positioned teams showed improved disaster response capabilities.

Analyst Sentiment Recent analyst ratings show mixed opinions:

• Scotiabank maintains Buy rating with $98 price target (+17.55% upside)
• Morgan Stanley maintains Hold rating with $85 price target (-2.97% downside)
• BMO Capital maintains Buy rating with $97 price target (+9.62% upside)

Recommendation Based on current technical indicators and recent positive operational performance, SO stock appears to be a HOLD at current levels. While the company shows strong operational execution and has positive analyst sentiment overall, the current price is trading near resistance levels. Investors may want to wait for a pullback closer to the Fibonacci support level of $80.87 for a better entry point.

Based on the provided data, here's a 3-sentence price prediction for Southern Company (SO) stock in 2025:

Southern Company's stock is projected to reach $86-87 by mid-2025, representing approximately 3% upside from current levels, supported by its successful implementation of new "smart grid" technologies and efficient power restoration capabilities demonstrated during Winter Storm Cora. The company's strong position in the Electric Utilities industry, with an 87% rating from Validea's Multi-Factor Investor model, indicates robust fundamentals driven by its low volatility and high net payout yields. However, upside may be limited by the current RSI of 53.62 suggesting neutral momentum, and the stock trading near its fibonacci resistance level of $84.90.

The S1 support level for SO Stock is $81.04 ,The R1 resistant level for SO Stock is $84.83.

As of the end of day on 2025-01-24, the price of SO Stock was $83.29.

The target price for SO Stock according to analyst rating is 90.64, with the highest price target at 98.00 and the lowest at 83.00. Analysts have a Hold rating on SO Stock overall.

The market cap of SO is $91.5B.

Based on the provided data and recent market activity, here's a comprehensive analysis of Southern Company (SO)'s valuation:

Valuation Metrics Analysis

• Current P/E ratio of 21.04x in Q3 2024 shows an increase from 18.58x in Q1, indicating the stock has become more expensive
• EV/EBITDA of 13.55x suggests moderate premium compared to utility sector averages
• P/B ratio increased to 2.97x from 2.46x, showing rising market premium

Financial Performance

• Q3 2024 revenue reached $7.27B, showing steady growth from $6.65B in Q1
• Net income improved significantly to $1.54B in Q3 from $1.13B in Q1
• Gross margin expanded to 60.56% in Q3 from 53.73% in Q1, indicating improved operational efficiency

Analyst Sentiment Recent analyst actions show mixed opinions:

• Scotiabank raised PT to $98 (Buy) with 17.55% upside
• Morgan Stanley lowered PT to $85 (Hold) with -2.97% downside
• BMO Capital maintains Buy rating with PT $97

Key Concerns

• High debt-to-equity ratio of 172.38% in Q3 2024
• Current ratio below 1.0 (0.91) indicates potential liquidity concerns
• Dividend yield declining trend from 3.90% to 3.15%

Conclusion SO appears moderately overvalued based on:

1. Rising valuation multiples above historical averages
2. High debt levels despite improving operational metrics
3. Mixed analyst sentiment with limited upside potential
4. Premium valuation compared to utility sector peers
5. Declining dividend yield trend

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 each 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 renewable energy 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.

Based on the provided data and context, here's the analysis for Southern Company (SO) stock price prediction for 2030:

Southern Company's stock price is projected to reach $125-130 by 2030, driven by three key factors:

The company's successful implementation of smart grid technologies and rapid power restoration capabilities demonstrate strong operational efficiency, which will support long-term growth and profitability.

The utility sector's critical role in the energy transition through 2030, with Southern Company well-positioned to benefit from increased electrification and renewable energy adoption.

The company's stable dividend yield (currently 3.15%) and regulated utility business model provide defensive characteristics that support steady price appreciation over the long term.

Note: This projection assumes relatively stable interest rates and regulatory environment through 2030. Market conditions and company-specific factors could cause significant deviations from this estimate.

SO has a total of 28100 employees.