Is Southern Company (NYSE:SO) A Safe Bet For Investors?


Southern Company (NYSE:SO) closed its last session at $45.25. The stock traded within a range of $45.08 and $45.84. The company operates in the Utilities sector with a market capitalization of 45.34 Million. Trading volume for Southern Company was 6.87 Million in its previous trading session. Currently, Southern Company (NYSE:SO) has an average volume of 4.87 Million.

Company Profile

Southern Company is America’s premier energy company, with 46,000 MW of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput volume serving 9 million customers through its subsidiaries. Operations include nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of natural gas pipeline. The company provides clean, safe, reliable and affordable energy through electric operating companies in four states, natural gas distribution companies in seven states, a competitive generation company serving wholesale customers across America and nationally recognized provider of energy solutions, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and affordable prices that are below the national average.

Analyst Views

Southern Company (NYSE:SO) received a Buy rating from 2 analysts. 0 analysts gave its stock an Outperform rating. 3 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

Southern Company (NYSE:SO) touched its 1-Year High price of $53.51 on 11/03/17 and its 1-Year Low price of $45.08 on 01/11/18.

EPS & Financials

Southern Company (NYSE:SO) reported its EPS in the last quarter as $1.12/Share beating the analyst estimate of $1.07/Share by a difference of $0.05. This showed a surprise of 4.7% in the last quarter earnings.

For the current quarter, 10 analysts are projecting a mean EPS of $0.46/share. According to their observations and findings, the stock could provide a high EPS of $0.5/share and a low EPS of $0.4/share.

Analysts believe that the company has the potential to earn average revenue of $5.01 Billion for the current quarter. According to their predictions high & low revenue estimates are 5.45 Billion and 4.44 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BEARISH with HIGH volatility. Southern Company (NYSE:SO) has a 20-Day average volume of 6.22 Million. According to today’s trading volume Southern Company is ABOVE its 20-Day Avg. volume with the stock showing ABOVE Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BEARISH territory while an analysis of the last 40-Day trend shows a BEARISH signal. The 100-Day trend also shows a BULLISH trend as well.

The company currently has an insider ownership of 0.04 Percent and Institutional ownership of 55.9 Percent. The return on assets stands at 0.5%, Return on Equity currently is 2.3% and the Return on Investment value is 5.1%.

Southern Company (NYSE:SO) gross margin percentage stands at 87.7% while its operating margin for the past trailing twelve month is 10.4 percent and its overall profit margin (ttm) is 2.5 Percent. The stock is currently moving below its 20-Day Simple Moving Average of -7.06% with a 50-Day Simple Moving Average of -10.24 percent. As of today, the company has a SMA200 (200-day simple moving average) of -9.04 Percent. The Stock has YTD (year to date) performance of -5.91 percent.

The TTM operating margin for the company stands at 10.4%. The return on invested capital is at 5.1%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 0.

The company’s stock is currently moving with a -ve distance from the 200 day SMA of approximately -9.04%, and has a solid year to date (YTD) performance of -5.91% which means that the stock is constantly adding to its value from the previous fiscal year end price.