Southern Company (SO) Monthly Stock Report - January 2026

Company Overview

The Southern Company, headquartered in Atlanta, Georgia, is a leading player in the regulated electric utilities sector. Established in 1946, Southern Company operates through its subsidiaries in the generation, transmission, and distribution of electricity. The company manages diverse power generation assets, which include a strong focus on renewable energy projects, while also selling electricity in wholesale markets. In addition to its electric services, Southern Company distributes natural gas across regions including Illinois, Georgia, Virginia, and Tennessee, overseeing approximately 78,500 miles of pipelines and 14 storage facilities.

As a key player in the regulated utilities industry, Southern Company's business model allows it to benefit from stable demand and consistent revenue streams. With a total revenue of approximately $28.91 billion, the firm demonstrates a strong financial standing, showcasing its capability to generate reliable income through core operations. The recent analysis highlights a target high price forecast of $109.00, revealing potential for growth as the company continues to adeptly navigate the evolving energy landscape.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Southern Company's stock (SO) reflects a predominantly bullish trend over the past year, interspersed with periods of consolidation and correction. Since January 2025, the stock showcased an upward trajectory, peaking above $100 in October before entering a corrective phase.

Key Price Levels:

• Current Price: $87.42 (as of January 2, 2026)
• 52-Week High: $100.84
• 52-Week Low: $80.46
• Fifty-Day Moving Average: $89.7122

Support and Resistance:

The stock has established firm support at the $87 level, which coincides with a long-term support trendline. This suggests that there could be potential stabilization in this range, emphasizing the importance of this support level in assessing the stock's future momentum. Resistance has consistently been encountered around $95, which was tested multiple times without sustained breaches.

Momentum Indicators:

Recent trading activity shows the stock has dipped below its moving average, suggesting a shift in momentum with underlying cautious sentiment in the market. After achieving a peak, the stock subsequently fell by approximately 9.47%, underscoring the need for investors to monitor price action closely around significant levels of support and resistance.

Financial Performance and Metrics

Southern Company has reported substantial financial performance metrics, underlining its strong revenue-generating capabilities: - Total Revenue: $28,913,000,448 - EBITDA: $13,813,000,192

These figures indicate robust profitability and a healthy financial position, providing a solid foundation for future growth and investment opportunities. The stock currently trades at a price of $87.42, which is below both its fifty-day moving average and its fifty-two-week high, signifying a potential weakness in short-term momentum.

Valuation Metrics:

• Total Shares Outstanding: 1,101,104,843
• Shares Sold Short: 25,511,417 (2.32% of float)
• Target Price Range:
• Bullish Target High: $109.00
• Bearish Target Low: $76.00
• Average Target Price: $96.725
• Median Target Price: $98.50

The current trading price within the established range indicates potential upside for investors, especially with supportive fundamentals.

Recent News and Developments

Amid recent trading activity, Southern Company has experienced significant developments. On December 16, 2025, Morgan Stanley downgraded the stock from "Equalweight" to "Underweight," lowering its price target to $81.00 from $91.00 due to anticipated political and regulatory challenges ahead of the 2026 mid-term elections, especially in Georgia. Similarly, Jefferies downgraded the company from "Buy" to "Hold" on November 5, reducing the price target to $103.00 from $114.00, highlighting political shifts impacting its risk profile.

Conversely, in a demonstration of resilience, Southern Company's stock recovered slightly on January 2, 2026, trading at $87.47, reflecting a 0.31% increase from the previous close. Furthermore, strategic initiatives like the expansion of data center capacity in Georgia indicate a commitment to growth and adaptation within the changing energy environment.

Market Sentiment and Analyst Recommendations

The market sentiment surrounding Southern Company remains cautiously optimistic, despite recent downgrades. With a total of 20 analyst opinions contributing to the consensus, the disagreement among analysts regarding the stock's potential trajectory has produced mixed recommendations. While no definitive recommendation key is provided, the stock's resilience against downgrades combined with its strategic growth initiatives positions it favorably in the eyes of some investors.

Analyst Consensus:

• Price Target Recommendations:
• High: $109.00
• Mean: $96.725
• Median: $98.50
• Short Interest: Limited bearish speculation as indicated by 2.32% of shares sold short.

Southern Company continues to navigate challenges presented by external factors while maintaining a firm focus on its operational strengths. With critical support around $87 and resistance near $95, investors should remain vigilant for price developments while keeping an eye on political and regulatory factors that may directly affect the company's outlook.

Conclusion

In conclusion, Southern Company presents a compelling case for investment consideration amidst a backdrop of steady demand in the regulated utilities sector. While the recent downgrades from analysts highlight elevated risks tied to regulatory uncertainties, the firm's solid financial performance metrics combined with strategic initiatives indicate a viable pathway for future growth. Investors are encouraged to monitor key support levels and remain informed about the ongoing political landscape as they assess potential investment opportunities in this resilient utility.

For more insights on stock performance and investment opportunities, stay updated with our regular financial analyses and market updates.