How Is Southern's Stock Performance Compared to Other Utilities Stocks?

Company Overview - Southern Company, based in Atlanta, Georgia, is a major player in the generation, transmission, and distribution of electricity, with a market cap of $99.4 billion, serving millions of customers across several states including Mississippi, Alabama, Georgia, Tennessee, and Virginia [1]. Market Position - Southern Company is categorized as a "large-cap stock" due to its valuation exceeding $10 billion, reflecting its extensive operations and influence in the utilities sector [2]. Stock Performance - Southern Company's stock reached an all-time high of $100.83 on October 16, but is currently trading 10.5% below that peak. Over the past three months, the stock has declined by 3.1%, underperforming the Utilities Select Sector SPDR Fund (XLU), which gained 5.6% during the same period [3]. - The stock has also underperformed in the long term, with a 9.6% gain in 2025 and a 1% increase over the past 52 weeks, compared to XLU's 18.9% year-to-date surge and 8.6% returns over the past year [4]. Recent Financial Results - Following the release of better-than-expected Q3 results on October 30, Southern's stock prices increased by 1.7%. The company's overall revenue grew by 7.5% year-over-year to $7.8 billion, surpassing expectations by 3.8%. Adjusted EPS rose by 11.9% year-over-year to $1.60, exceeding consensus estimates by 6.7% [5]. Competitive Analysis - Southern Company has underperformed compared to its peer, NextEra Energy, Inc., which saw a 19.3% surge in 2025 and 10.4% gains over the past 52 weeks [6]. - Among 24 analysts covering Southern stock, the consensus rating is a "Hold," with a mean price target of $100.83, indicating an 11.7% upside potential from current price levels [6].