Recent Pullback Provides Opportunity In Southern Company
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Crimson And Gold Research192 FollowersFollow5ShareSavePlay(12min)CommentsSummaryThe Southern Company is rated a Buy after a 15% pullback, offering a stable, income-producing utility with multiple growth catalysts for 2026.SO projects 5–7% annual EPS growth, supported by 8% regulated rate base and electric load growth through 2029, with 90% of earnings from regulated utilities.The company’s $76 billion capital plan is 77% equity-funded through 2029, and SO will become a Dividend Aristocrat in 2025, likely driving ETF demand.Key risks include a high debt load (BBB+), sensitivity to interest rates, and regulatory uncertainty, but SO’s diversified funding and stable business profile support its investment case. carlofranco/iStock via Getty Images For many regulated utility investors, The Southern Company (SO) is a stalwart. Founded in 1946, the Atlanta-based provider of both electricity and natural gas was recently named as the top energy company inThis article was written byCrimson And Gold Research192 FollowersFollowI have been involved in the financial world for over 20 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks come from stocks that are less-widely followed by the average investor or from stocks that may not accurately reflect the opportunities that currently exist in their markets.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Quick InsightsWhat supports SO’s forward EPS growth and how reliable is it?SO targets 5–7% annual EPS growth, underpinned by 8% regulated rate base and electric load growth, with 90% of earnings from state-regulated utilities, providing high predictability.Recommended For You