Is Southern Company Stock Underperforming the S&P 500?
Atlanta, Georgia-based The Southern Company (SO) generates, transmits, and distributes electricity. Valued at $105.6 billion by market cap, the company also offers wireless telecommunications services, provides businesses with two-way radio, telephone, paging, and internet access services, and wholesales fiber optic solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and SO definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the utilities - regulated electric industry. SO has a robust foundation, with strong finances, a skilled workforce, and extensive infrastructure, including power plants and transmission lines. The company's expertise in navigating complex regulatory environments and influencing energy policy is a key asset.
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Despite its notable strength, SO slipped 4.5% from its 52-week high of $100.84, achieved on Oct. 16, 2025. Over the past three months, SO stock has gained 6.8%, outperforming the S&P 500 Index’s ($SPX) 1.4% gains during the same time frame.
Shares of SO rose 10.5% on a YTD basis, outperforming SPX’s YTD marginal gains. However, in the longer term, the stock climbed 8.6% over the past 52 weeks, underperforming SPX’s 16% returns over the last year.
To confirm the bullish trend, SO has been trading above its 50-day moving average since mid-January, with slight fluctuations. The stock is trading above its 200-day moving average since mid-February, with a minor fluctuation.
On Feb. 19, SO shares closed up more than 4% after reporting its Q4 results. Its adjusted EPS of $0.55 did not meet Wall Street expectations of $0.56. The company’s revenue was $7 billion, exceeding Wall Street forecasts of $6.9 billion.
In the competitive arena of utilities - regulated electric, Duke Energy Corporation (DUK) has lagged behind SO, showing resilience with a 10.3% uptick on a YTD basis, but outpaced the stock with a 11.1% gain over the past 52 weeks.
Wall Street analysts are cautious on SO’s prospects. The stock has a consensus “Hold” rating from the 24 analysts covering it, and the mean price target of $99.38 suggests a potential upside of 3.1% from current price levels.
On the date of publication, Neha Panjwani 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