The Southern Company (NYSE:SO) is included among the Best Low Risk Stocks for a Retirement Stock Portfolio.
Pixabay/Public domain
On January 23, RBC Capital analyst Stephen D’Ambrisi raised his price target on The Southern Company (NYSE:SO) to $105 from $99 and maintained a Sector Perform rating. The move came on a broader note previewing fourth-quarter earnings for the utilities sector. The analyst noted that the capital spending landscape for utilities has been changing for much of the last year and a half. With investment plans changing more rapidly than usual, several companies that typically wait until the fourth quarter to update their outlooks shared early or off-cycle details about their capital plans. Those revelations led RBC to review and update its models across the group.
Southern Company’s operations are concentrated in the southeastern U.S., although it also owns wind, solar and natural gas assets in other parts of the country. More than 90% of its profits come from state-regulated electric and gas utilities, which keep the business relatively stable and easy to follow.
Through subsidiaries such as Alabama Power, Georgia Power and Mississippi Power, the company supplies electricity and gas to customers throughout its service areas. Rates are set in coordination with regulators, with the goal of protecting consumers while allowing The Southern Company (NYSE:SO) to recover its costs and invest in the maintenance and expansion of its infrastructure.
While we recognize the potential of SO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: The 15 Best S&P 500 Dividend Stocks to Buy in 2026 and the 12 Most Profitable Dividend Stocks to Buy in 2026
Disclosure: None.