Valued at a market cap of $98.3 billion, The Southern Company (SO) generates, transmits, and distributes electricity. The Atlanta, Georgia-based company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects.

This utility company has underperformed the broader market over the past 52 weeks. Shares of SO have gained 5.1% over this time frame, while the broader S&P 500 Index ($SPX) has surged 15.5%. Moreover, on a YTD basis, the stock is up 1.1%, compared to SPX’s 1.9% return.

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Narrowing the focus, SO has also lagged behind the State Street Utilities Select Sector SPDR ETF (XLU), which soared 9.5% over the past 52 weeks and declined marginally on a YTD basis.

On Oct. 30, shares of SO climbed 1.7% after it posted better-than-expected Q3 results. Due to a robust rise in its retail and wholesale electric revenues and natural gas revenues, the company’s total operating revenue reached $7.8 billion, up 7.5% year-over-year and 3.7% ahead of consensus estimates. Meanwhile, its adjusted EPS also increased 11.9% from the same period last year to $1.60, surpassing analyst estimates by 6.7%.

For the current fiscal year, ending in December, analysts expect SO’s EPS to grow 5.9% year over year to $4.29. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 24 analysts covering the stock, the consensus rating is a "Hold,” which is based on five “Strong Buy,” one "Moderate Buy,” 15 “Hold,” and three “Strong Sell” ratings.

The configuration is more bearish than a month ago, with two analysts suggesting a “Strong Sell” rating.

On Jan. 23, RBC Capital analyst Stephen D’Ambrisi maintained a “Sector Perform” rating on SO and raised its price target to $105, indicating a 19.1% potential upside from the current levels.

The mean price target of $96.78 represents a 9.7% premium from SO’s current price levels, while the Street-high price target of $108 suggests a 22.5% potential upside from the current levels.

On the date of publication, Neharika Jain 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. This article was originally published on Barchart.com