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SOSouthern Company (The)Sell5.1·$94.31+0.52%
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Southern Company (The) (SO) Stock Analysis

Breakout setup

SellVALUE-TRAP 2/5Moderate Confidence

Utilities · Utilities - Regulated Electric

Sell if holding. Analyst target reached at $94.31 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.9): -1.0.

Southern Company owns three regulated electric utilities in Alabama, Georgia, and Mississippi; Southern Power's wholesale generation fleet; and Southern Company Gas, which distributes natural gas to 4.4 million customers in Illinois, Georgia, Virginia, and Tennessee. Revenues... Read more

$94.31-1.0% A.UpsideScore 5.1/10#25 of 40 Utilities - Regulated Electric
QualityF-score6 / 9FCF yield-3.73%
IncomeYield3.24%(5y avg 3.64%)Payout75.70%
Stop $90.49Target $93.38(resistance)A.R:R -0.6:1
Analyst target$101.34+7.5%19 analysts
$93.38our TP
$94.31price
$101.34mean
$81
$114

Sell if holding. Analyst target reached at $94.31 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.9): -1.0. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Score 5.1/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 43d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About Southern Company (The)

About Southern Company (The)

Southern Company's 2026 construction program totals $15.9 billion system-wide, with Georgia Power — the company's largest subsidiary — accounting for $10.1 billion of that figure, including $3.6 billion for new generation tied to Georgia PSC-certified resource additions and $2.6 billion for transmission. Alabama Power, Mississippi Power, Southern Power, and Southern Company Gas account for the remaining $5.8 billion. These investments target projected electric load growth from data centers and other large customers that have contracted approximately 9 GWs of new load, with service expected to commence through 2028.

Southern Company earns revenue through three primary channels: regulated retail electricity sold by Alabama Power, Georgia Power, and Mississippi Power under rate plans approved by the Alabama PSC, Georgia PSC, and Mississippi PSC; regulated natural gas distribution through Southern Company Gas to 4.4 million customers in Illinois, Georgia, Virginia, and Tennessee with rates set by state commissions; and wholesale electricity sold by Southern Power under FERC market-based rate authority through long-term PPAs at an average remaining contract duration of approximately 12 years. Nuclear generation represented approximately 22% of total KWHs for Alabama Power and 36% for Georgia Power in 2025, with Plants Farley, Hatch, and Vogtle operated by Southern Nuclear. SCS contracted for 644 Bcf of natural gas supply for 2026 under agreements with terms up to nine years. Georgia Power's 2022 ARP was extended through December 31, 2028 with no base-rate adjustments except storm damage costs; Alabama Power's rate-stable plan runs through 2027.

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Georgia Power's rate-base investment dominates Southern Company's near-term capital program, creating concentrated dependence on Georgia PSC outcomes. Certified costs for Georgia Power's IRP-approved projects total $19.5 billion through 2030, and the Georgia PSC's 2022 ARP settlement extended base rates through December 31, 2028. The 10-K notes that rising costs and increased projected capital expenditures could result in resistance to authorizing cost recovery — a risk that falls primarily on Georgia Power given its scale in the Southern Company system. Alabama Power's rate-stable plan runs only through 2027, adding near-term regulatory review exposure for that subsidiary.

See also: Utilities · Utilities - Regulated Electric

From Southern Company (The)'s most recent 10-K filing, extracted June 11, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-17
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 30, 202643d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Positive momentum
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 1.9): -1.0
Negative news sentiment (-0.67)

Key Metrics

P/E (TTM)24.0
P/E (Fwd)19.1
Mkt Cap$105.8B
EV/EBITDA13.1
Profit Mgn14.5%
ROE11.0%
Rev Growth8.0%
Beta0.34
Dividend3.24%
Rating analysts33

Quality Signals

Piotroski F6/9

Options Flow

P/C1.93bearish
IV30%low
Max Pain$130+37.8% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCommodityGeorgia Power nuclear generation36%
    10-K Item 1A: 'Southern Nuclear ... represented approximately 22% and 36% of the total KWHs generated by Alabama Power and Georgia Power, respectively, in the year ended December 31, 2025'
  • LOWCommodityAlabama Power nuclear generation22%
    10-K Item 1A: 'Southern Nuclear ... represented approximately 22% and 36% of the total KWHs generated by Alabama Power and Georgia Power, respectively, in the year ended December 31, 2025'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
1.8
Revenue Growth
4.5
GatesA.R:R -0.6=NEGATIVEMomentum 7.5>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 43d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
52 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $89.02Resistance $95.29

Price Targets

$90
$93
A.Upside-1.0%
A.R:R-0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-3.3% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-30 (43d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SO stock a buy right now?

Sell if holding. Analyst target reached at $94.31 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.9): -1.0. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Prior stop was $90.49. Score 5.1/10, moderate confidence.

What is the SO stock price target?

Take-profit target: $93.38 (-1.0% upside). Prior stop was $90.49. Stop-loss: $90.49.

What are the risks of investing in SO?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.9): -1.0; Negative news sentiment (-0.67).

Is SO overvalued or undervalued?

Southern Company (The) trades at a P/E of 24.0 (forward 19.1). TrendMatrix value score: 5.2/10. Verdict: Sell.

What do analysts say about SO?

33 analysts cover SO with a consensus score of 3.5/5. Average price target: $101.

What does Southern Company (The) do?Southern Company owns three regulated electric utilities in Alabama, Georgia, and Mississippi; Southern Power's...

Southern Company owns three regulated electric utilities in Alabama, Georgia, and Mississippi; Southern Power's wholesale generation fleet; and Southern Company Gas, which distributes natural gas to 4.4 million customers in Illinois, Georgia, Virginia, and Tennessee. Revenues come from state PSC-regulated retail rates and FERC-authorized wholesale rates. A $15.9 billion 2026 construction program, concentrated in Georgia Power, addresses contracted data center load additions of approximately 9 GWs.

Related stocks: PCG (Pacific Gas & Electric Co.) · PEG (Public Service Enterprise Group) · NEE (NextEra Energy, Inc.) · DUK (Duke Energy Corporation (Holdin) · AEE (Ameren Corporation)
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