Rising global tensions make defensive, low-credit-risk pair trades attractive; Southern Company's baby bonds, SOJE and SOJF, present such an opportunity. Southern Company's strong regulated business, stable credit rating, and consistent dividend growth make its baby bonds attractive for pair trading. SOJE offers better upside potential and less downside risk than SOJF; current pricing creates a credit risk-free opportunity for savvy investors.
The Investment Committee give you their top stocks to watch for the second half.
SO's unit, Georgia Power, in partnership with Mitsubishi Power, hits a milestone with the world's largest 50% hydrogen blend test on a gas turbine.
Southern Co. (SO) closed the most recent trading day at $88.94, moving 1.56% from the previous trading session.
I initiate a 'Strong Buy' on Southern Company, with a fair value estimate of $104 per share, citing robust business growth prospects. Southern's diversified energy mix and strategic shift toward renewables position it well for long-term stability and sustainability. Surging electricity demand from data centers and AI-driven hyperscalers in the Southeast underpins strong revenue and EPS growth outlook.
Southern Copper's financials are strong, with record revenue and cash flow, but the stock trades at very high multiples for a commodity company. Copper's long-term demand outlook is positive, yet current high prices and cyclical risks make buying at these levels unattractive. Grupo México's dominant ownership of SCCO poses governance risks for minority shareholders, including limited influence and potential for privatization at lower prices.
SO's Georgia Power boosts grid resilience and urges customer safety as NOAA predicts a severe hurricane season in 2025.
SO's PowerSecure expands its alliance with Edged to deliver ultra-efficient, AI-ready data centers across key U.S. markets.
SO's subsidiary SouthStar becomes the first U.S. retail energy marketer to pilot MethaneScout, boosting emissions transparency.
SO is well-positioned for growth with its innovative strategies and dividends, but regulatory factors, including natural gas price volatility, could impact performance.
The Southern Company and state regulators agree to extend stable retail rates through 2028, pending regulatory approval.
Southern Co. (SO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.