Southern stock: buy or sell
Updated on:
Apr 22nd, 2021
2
Southern stock brief
- Southern closed on Wednesday at $65.73 after just moving a -0.54%.
- The price is currently above the upper Bollinger band, which usually indicates a near-term correction
- KeyCorp posted a buy rating for Southern on Wednesday, targeting $68.00
- The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.
Should I buy Southern stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SO stock a buy?
Currently, Southern stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it rises fast. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Southern can break to ATH any time soon, as it only needs to rise a 2.59%. Setup your buy order at $67.43 if you want to trade with this strategy. Place your stop-loss at $60.69
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $67.43 | $60.69 | 10.00% |
Should I sell Southern stock?
Do you know when is it time to sell Southern stock?. Trading strategies let us to avoid impulsive decisions based on our personal sentiments or the buzz that surrounds the market. We like very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies are not intended for selling short $SO stock
As a rule of thumb, you should never hold an operation that leads to greater losses than those expected at the time of purchase. The moment to sell shares must always be dictated by the stop-loss (automatic or manual)
Is it time to sell Southern stock?
In the current situation of Southern there is not any eligible sell setup, so Southern stock holders with operations in profit can keep their positions
Southern ratings
In the last 30 days, 7 ratings were published for Southern. General sentiment is bullish, with 4 out of 7 posting positive outlooks
| Brokerage firm | Rating |
|---|---|
| Mar 25th, 2021 | |
| Morgan Stanley | Sell |
| Mar 31st, 2021 | |
| Wells Fargo & Company | Buy |
| Apr 12th, 2021 | |
| Mizuho | Sell |
| Apr 14th, 2021 | |
| Credit Suisse Group | Buy |
| Apr 20th, 2021 | |
| Credit Suisse Group | Buy |
| Morgan Stanley | Sell |
| Apr 21st, 2021 | |
| KeyCorp | Buy |
Southern stock analysis
Since the price bottomed at $56.69 last February, the stock surged by 15.95%.
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
When the price moves out of the band (above the upper line or below the lower line) it shows that the price action is currently having a very strong momentum and therefore can reverse the trend to the average. At this point, the price is beyond the upper band, meaning a short-term corrective movement (at least) until it is below the band
Relative strength index
Climbed over the 70 level Wednesday, with a reading of 74.56. Breaking out above the overvalued zone is not a sell signal, as shares can be in the overvalued zone for many, many weeks and continue to rally
Southern stock price history
Southern went public priced at an adjusted price1 of $0.33 on Dec 1981. Since then, SO stock has risen by 19,818.18%, with an average of 508.16% per year. If you had invested thousand dollars in Southern stock on the IPO, it would be valued $199,181.82 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Southern stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these predictions follow the release of new financial information by the company, and many times. Again, these forecasts are not direct recommendations for individual traders and must not be followed blindly.
The average price target for Southern stock calculated from the table below is $66.14. That is a 0.62% than the last price ($65.73).
| Brokerage firm | Price target |
|---|---|
| Mar 25th, 2021 | |
| Morgan Stanley | $55.00 → $57.00 |
| Mar 31st, 2021 | |
| Wells Fargo & Company | $67.00 → $71.00 |
| Apr 12th, 2021 | |
| Mizuho | $57.00 → $59.00 |
| Apr 14th, 2021 | |
| Credit Suisse Group | $68.00 → $73.00 |
| Apr 20th, 2021 | |
| Credit Suisse Group | $68.00 → $73.00 |
| Morgan Stanley | $57.00 → $62.00 |
| Apr 21st, 2021 | |
| KeyCorp | $65.00 → $68.00 |
Earnings and financials
Last February, Southern ($SO) had the quarterly financial call and presented the report. Southern posted earnings of $0.47 per share on sales of $5.1 billion. The market estimate was $0.42 per share on revenue of $5.8 billion.
This compares to Earnings of $0.27 per share same quarter last year, so reported EPS means an increase of 74.07%. Revenue barely moved on an annualized basis in the , from $49.1B to $51.2B last quarter.Southern ($SO) will host the quarterly earnings call on Thursday next week. Analysts expect of $0.83, that is a 76.60% more than Q4.
Southern performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Southern ($SO) | 10.00% | 10.70% | 15.20% |
Please read:
The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the individual circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for education purposes onlySouthern summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $66.18 |
| Close | $65.73 |
| Day range | $65.39 - $66.4 |
| Previous close | $66.09 |
| Session gain | -0.54% |
| Average true range | $0.93 |
| 50d mov avg | $60.76 |
| 100d mov avg | $60.21 |
| 200d mov avg | $57.43 |
| Earnings date | April 29th, 2021 |