Decoding the Investment Potential of Southern (SO)

Large-cap Utilities company Southern has moved -1.9% so far today on a volume of 1,711,770, compared to its average of 4,756,411. In contrast, the S&P 500 index moved 0.0%.

Southern trades -0.31% away from its average analyst target price of $78.09 per share. The 17 analysts following the stock have set target prices ranging from $66.0 to $85.5, and on average have given Southern a rating of buy.

Anyone interested in buying SO should be aware of the facts below:

  • Southern's current price is 61.2% above its Graham number of $48.3, which implies that at its current valuation it does not offer a margin of safety

  • Southern has moved 11.6% over the last year, and the S&P 500 logged a change of 24.4%

  • Based on its trailing earnings per share of 3.86, Southern has a trailing 12 month Price to Earnings (P/E) ratio of 20.2 while the S&P 500 average is 27.65

  • SO has a forward P/E ratio of 18.0 based on its forward 12 month price to earnings (EPS) of $4.32 per share

  • The company has a price to earnings growth (PEG) ratio of 2.68 — a number near or below 1 signifying that Southern is fairly valued compared to its estimated growth potential

  • Its Price to Book (P/B) ratio is 2.67 compared to its sector average of 2.27

  • The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.

  • Based in Atlanta, the company has 27,819 full time employees and a market cap of $85.12 Billion. Southern currently returns an annual dividend yield of 3.5%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.