Southern Company (SO, $50.13) slated to finish two new nuclear plants
The Southern Company (SO) has now brought reactors like Westinghouse AP100 online in China to help break the trend of cost overruns and delays at the company’s Vogtle nuclear construction site in Georgia.
SO is known to have set up a nuclear power plant during the late 1980s at its Vogtle facility. But the costs had overrun from estimates of $2 billion to over $9 billion, and Southern’s contractor Westinghouse declared bankruptcy. Investors were not exactly happy when the company decided to add two more nuclear plants at its Vogtle facility.
However, fourth quarter results provided some solid news. The company believes it is on schedule to hit its November 2021 and November 2022 in-service dates for its two new nuclear units, thanks to the improved efficiency driven by positive employment and retention trends. It has also reformed its decisions about employing less skilled labor for doing simple tasks, and focusing more on skilled labors with tasks only they can complete.
But the role of China is crucial in Southern’s plans to finish strongly at the Vogtle project. As Westinghouse AP1000 reactors have been brought online in that country over the last year, Southern has been there to watch the process. With the Chinese plants going live, it’s now clear to the company how technology actually works. The lesson learned from Chinese start-ups could actually help the company’s own execution.
The Southern Company offers its investors a hearty dividend yield of 4.4%.
Momentum Indicator for SO turns positive, indicating new upward trend
SO saw its Momentum Indicator move above the 0 level on February 11, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 102 similar instances where the indicator turned positive. In of the 102 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
SO moved above its 50-day moving average on February 07, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SO crossed bullishly above the 50-day moving average on February 06, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for SO moved above the 200-day moving average on February 26, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SO advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 303 cases where SO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SO moved out of overbought territory on March 04, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.467) is normal, around the industry mean (1.716). P/E Ratio (19.641) is within average values for comparable stocks, (23.614). Projected Growth (PEG Ratio) (2.683) is also within normal values, averaging (2.640). Dividend Yield (0.039) settles around the average of (0.069) among similar stocks. P/S Ratio (3.091) is also within normal values, averaging (3.124).
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a company that generates and supplies electricity
Industry ElectricUtilities