Southern stock: buy or sell?

SO stock price: $55.65 -0.82% At close on July 16th, 2019

Updated on:
July 16th, 2019

5

Southern declined -0.82% to $55.65 after reaching all time highs on Wednesday.

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

Should I buy Southern stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Southern stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean SO will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Southern stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 6 ratings published for SO stock in the last 30 days.

The general sentiment of these ratings is bearish for SO stock, with 2 negative ratings.
Is SO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-19Barclaysn/aHold
2019-6-13MizuhoPositiveNeutral
2019-4-22Credit Suisse Groupn/aSell
2019-2-25SunTrust Banksn/aHold
2019-2-22Evercore ISIn/aUnderperform
2019-1-24CitigroupSellNeutral

Southern stock analysis

Daily outlook

After topping to all time highs on Wednesday, Southern declined -0.82% to $55.65.

After marking all time highs on Wednesday, Southern declined -0.82% to $55.65. From a daily perspective, SO is in a short term uptrend after plotting its last bottom ($54.44, on July/1) higher than the previous bottom, and its last top ($57.08, on Wednesday) also over the previous top. Now trading in between its last bottom and last top SO might consolidate in a plain range, waiting to break out over $57.08 or down under $54.44. On Wednesday, SO hit a new all time high, pushing higher than on July 9th tops. Check different trading setups that use ATHs as triggers.

SO stock chart (daily)

Weekly outlook

Shares of Southern ended this week at $55.65 and remained stable a neutral -0.04%.

Southern stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Southern marked last week. Late December 2018 SO price bounced up over the SMA of 40 weeks that acted as support stopping new slides. By mid August 2018, SMA20w and SMA40w crossed up triggering a rise of 26.74%.

SO stock chart (weekly)

Southern stock price history

Southern IPO was on December 31st, 1981 at $0.35 per share1. Since then, SO stock surged a 15,800.00%, with an average of 427.00% per year. If you had invested $1,000 in Southern stock in 1981, it would worth $158,000.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Southern stock historical price chart

SO stock reached all-time highs on Wednesday with a price of $57.08.

Southern stock price target is $53.40

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 5 price predictions for Southern stock published in the last 30 days:
SO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-19BarclaysReiteratesn/a$57.00-
2019-6-13MizuhoRaises Target$48.50$55.0013.4%
2019-4-22Credit Suisse GroupSet Price Targetn/a$51.00-
2019-2-25SunTrust BanksReiteratesn/a$52.00-
2019-2-22Evercore ISIUpgrades$45.00$52.0015.6%
(in average)$46.80$53.4014.0%
The price forecast for Southern stock is $53.40, moving in a range between $57.00 and $51.00. In average, analysts' outlook on SO price target is positive, increasing the forecast by a 14.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Southern presented tiny results for 2018-Q4 on February. Southern grew Earnings per Share (EPS) by 4.20%, beating experts consensus of $0.24. Southern posted $0.25.
SO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.58n/a
2017-Q32017-11-011.071.124.7%
2017-Q42018-02-210.460.5110.9%
2018-Q12018-05-020.840.884.8%
2018-Q22018-08-080.690.815.9%
2018-Q32018-11-071.071.146.5%
2018-Q42019-02-200.240.254.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a slightly good increase of 2.01% to $23,495.00 M USD. When comparing 2018 vs 2017, likewise, profit margin (that is, the net income divided by revenues) escalated a 5.72% to 9.54%.

SO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,090 M-$1,710 M10.0%-
2014$18,467 M8.06%$2,031 M11.0%18.77%
2015$17,489 M-5.30%$2,435 M13.9%19.89%
2016$19,896 M13.76%$2,493 M12.5%2.38%
2017$23,031 M15.76%$880 M3.8%-64.70%
2018$23,495 M2.01%$2,242 M9.5%154.77%

Quarterly financial results

Southern posted $5,337.00 M in revenues for 2018-Q4, a -13.35% less compared to previous quarter. Reported quarter income marked $282.00 M with a profit margin of 5.28%. Profit margin plummed a -13.68% compared to previous quarter when profit margin was 18.96%. When comparing revenues to same quarter last year, Southern sales marked a fateful loss and eased a -5.17%.
SO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,410 M-$-1,370 M-25.3%-
2017-Q3$6,201 M14.62%$1,079 M17.4%-178.76%
2017-Q4$5,628 M-9.24%$501 M8.9%-53.57%
2018-Q1$6,372 M13.22%$942 M14.8%88.02%
2018-Q2$5,627 M-11.69%$-150 M-2.7%-115.92%
2018-Q3$6,159 M9.45%$1,168 M19.0%-878.67%
2018-Q4$5,337 M-13.35%$282 M5.3%-75.86%
2019-Q1$5,412 M1.41%$2,088 M38.6%640.43%

Southern ownership

When you are planning to invest in a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Southern, 0.08% of all outstanding shares are owned by its staff.

In case of Southern stock, 57.65% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for SO stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related companies:

SOAEPDDUKEE
Market cap$57.9 B$45.0 B$50.9 B$65.1 B$2.7 B
Total shares1,040.0 M493.4 M651.6 M728.1 M40.7 M
Float shares1,040.0 M493.1 M800.2 M727.5 M40.3 M
  - Institutional holdings (%)57.6%75.8%60.2%61.7%96.3%
  - Insider holdings (%)0.1%0.0%0.3%0.1%1.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Southern summary

Tuesday, July 16th, 2019
Open$56.00
Close$55.65
Day range$55.42 - $56.15
Previous close$56.11
Session gain-0.82%
Average true range$0.80
50d mov avg$54.66
100d mov avg$52.80
200d mov avg$48.85
Daily patternlt06a
Weekly pattern lt06a

Southern performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Southern against American Electric Power, Dominion Energy, Duke Energy, El Paso Electric, Entergy, FirstEnergy, NextEra Energy, NRG Energy and PPL in the following table:
Stock3m6m12m
SOSouthern8.35%20.69%23.04%
AEPAmerican Electric...10.72%21.83%34.01%
DDominion Energy5.50%16.36%14.87%
DUKDuke Energy1.36%6.66%15.75%
EEEl Paso Electric12.81%31.39%11.05%
ETREntergy13.24%23.90%35.66%
FEFirstEnergy9.27%15.00%29.08%
NEENextEra Energy10.99%20.15%26.08%
NRGNRG Energy-13.01%-11.52%11.27%
PPL -0.16%4.13%14.83%

Southern competitors

We selected a few stocks to conform a list of Southern competitors to examine if you are interested in investing in SO:

Latest Southern stock news