1 May

Southern Company Stock Is Trading in the Overbought Zone

WRITTEN BY Vineet Kulkarni

Chart indicators

Southern Company (SO) stock is currently trading at $53.2, close to its all-time high. It’s almost 4% and 13% above its 50-day and 200-day simple moving average levels, respectively. The fair premium to both these support levels suggests strength in the stock. Its 50-day level at $51.3 might act as a support for the stock in the short term. SO is trading in the overbought zone with its relative strength index at 72, implying an impending reversal in the stock.

Southern Company Stock Is Trading in the Overbought Zone

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Analyst price targets

Southern Company stock has a downside potential of 4% from its current market price of $53.2. Consensus estimates have given it a target price of $51.1. Credit Suisse raised SO’s target from $48.0 to $51.0 last week.

Wall Street analysts mostly look cautious on Southern Company stock. Among the 19 analysts that track SO, two recommended a “buy,” 12 recommended a “hold,” one analyst recommended a “strong sell,” and four recommended a “sell” as of May 1.

What differentiates Southern Company from its peers is its sturdy dividend profile. It offers a yield of 4.8% against utilities’ (XLU) average of 3.1%. It has increased dividends for the last 18 years. You can compare top utilities’ dividend profiles in Analyzing the Dividend Profiles of the Four Biggest Utilities.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.