Are Wall Street Analysts Predicting Southern Company Stock Will Climb or Sink?
With a market cap of $101.2 billion, The Southern Company (SO) is one of the largest utility providers in the United States, serving around nine million customers across multiple states through its electric and natural gas subsidiaries. It operates 46,000 megawatts of generation capacity, has an extensive electric and gas infrastructure, and engages in wholesale energy, renewables, and related services.
Shares of the Atlanta, Georgia-based company have outperformed the broader market over the past 52 weeks. Southern Company stock has returned 19.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 8.6%. Moreover, shares of SO are up 11.9% on a YTD basis, compared to SPX's 4.3% decline.
Looking closer, the power company has also outpaced the Utilities Select Sector SPDR Fund's (XLU) 16.1% return over the past 52 weeks and a 6.7% YTD gain.
Despite Southern Company’s stronger-than-expected Q1 2025 adjusted EPS of $1.23 and revenue of $7.8 billion, shares dipped slightly on May 1 due to soft Q2 EPS guidance of $0.85, below prior-year levels and investor expectations. The management attributed the lower guidance to weather normalization and timing issues in Georgia's transmission system. Analysts also flagged potential headwinds from tariff-related costs, inflation-driven demand softness, and the absence of large one-time benefits seen in Q2 2024.
For the fiscal year ending in December 2025, analysts expect SO's EPS to grow 5.7% year-over-year to $4.28. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and 13 “Holds.”
On May 1, Scotiabank analyst Andrew Weisel reiterated a “Sector Outperform” rating and price target of $98 on Southern Company, following better-than-expected Q1 EPS. The analyst cited consistent EPS growth, low regulatory risk, and strategic exposure to data centers and domestic manufacturing as key positives.
As of writing, SO is trading below the mean price target of $95.85. The Street-high price target of $104 implies a potential upside of 12.9%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.