The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations. In addition, it owns and operates nuclear, coal, hydro, cogeneration, solar, wind, battery storage, and fuel cell facilities. Further, the constructs, operates, and maintains approximately 77,900 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 8.9 million electric and gas utility customers. Further, it develops distributed energy and resilience solutions; deploys microgrids for commercial, industrial, governmental, and utility customers; and offers digital wireless communications and fiber optics services. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

Southern Company (The)

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the FlexShares STOXX Global Broad Infrastructure Index Fund (Symbol: NFRA) where we have detected an approximate $82.5 million dollar outflow -- that's a 2.8% decrease week over week (from 48,600,001 to 47,250,001). Among the largest underlying components of NFRA, in trading today AT&T Inc (Symbol: T) is off about 0.9%, Comcast Corp (Symbol: CMCSA) is down about 2.4%, and Southern Company (Symbol: SO) is up by about 0.3%. For a complete list of holdings, visit the NFRA Holdings page » The chart below shows the one year price performance of NFRA, versus its 200 day moving average:
Looking at the chart above, NFRA's low point in its 52 week range is $53.01 per share, with $64.26 as the 52 week high point — that compares with a last trade of $61.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
XENE Insider Buying
Funds Holding ECON
Funds Holding UTAA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NFRA, T, CMCSA, SO: ETF Outflow Alert

In this video, Motley Fool contributors Jason Hall and Tyler Crowe make the case for Sun Belt electric utility stocks Dominion Energy (NYSE: D), NextEra Energy (NYSE: NEE), and Southern Co (NYSE: SO) for their AI upside and more.
*Stock prices used were from the afternoon of Jan. 22, 2026. The video was published on Jan 24, 2026.
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Jason Hall has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The AI Energy Trade: Can Utility Stocks Be Winners in 2026? (NEE, SO, D)

Stocks in the Zacks Utility-Electric Power industry offer an attractive investment opportunity, supported by stable cash flows and the predictability of regulated business models. Most domestic utilities operate under long-term power purchase agreements, which help shield revenues from economic volatility. Rising electricity demand, along with ongoing capital investments, is improving operational efficiency, allowing these companies to deliver consistent earnings and maintain reliable dividend payments.
Let’s compare NextEra Energy Inc. NEE and The Southern Company SO, two of the most prominent U.S. electric utilities that are actively investing in renewable energy, making them pivotal players in the shift toward cleaner power generation. As efforts toward decarbonization accelerate, utilities that actively adopt renewable and low-carbon technologies are well positioned to benefit from reduced fuel cost volatility and expanded market access, enhancing their appeal to both institutional and retail investors.
NextEra Energy’s clean energy investments and strong growth prospects position it as a leading player in the utility sector. Its regulated utility business, Florida Power and Light, provides stable and reliable cash flows under a rate-regulated framework. At the same time, its unregulated subsidiary, NextEra Energy Resources, is a leader in wind and solar generation, supporting long-term growth through an expanding portfolio of renewable projects and battery storage solutions. Supported by a clear commitment to decarbonization, disciplined capital allocation and strong ESG performance, NextEra Energy is well-positioned to benefit as the energy sector transitions toward a cleaner future.
Southern Company offers dependable long-term value through its regulated utility operations and forward-looking clean energy investments. Supported by a diversified generation mix, a large customer base and a constructive regulatory environment, the company delivers stable earnings and consistent dividend growth. The company’s proactive decarbonization strategy, including investments in nuclear power and the integration of renewable energy, positions Southern Company well to manage and benefit from the ongoing energy transition.
As both companies are leading utility players, a closer look at their fundamentals can help identify which stock presents the more compelling investment opportunity.
NEE & SO’s Earnings Growth Projections
The Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 indicates year-over-year growth of 7.99%. Long-term (three to five years) earnings growth per share is pegged at 8.08%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Southern Company’s earnings per share in 2026 implies year-over-year growth of 6.82%. Long-term (three to five years) earnings growth per share is pegged at 7.23%.
Image Source: Zacks Investment Research
Return on Equity
Return on Equity (ROE) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
NEE’s current ROE is 12.42% compared with SO’s 12.52%. Both companies outperform the industry’s ROE of 10.47%.
Valuation
NextEra Energy currently appears to be trading at a marginal premium compared with Southern Company on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE is currently trading at 20.88X, while SO is trading at 19.36X compared with the industry’s 15.63X.
Debt to Capital
The Zacks Utilities sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, utilities borrow from the market and add it to their internal cash generation to fund the long-term investments. The decline in interest rate to 3.5% from 3.75% will be beneficial for the capital-intensive utilities.
NEE’s debt-to-capital currently stands at 59.04% compared with SO’s 65.34%.
Image Source: Zacks Investment Research
NEE & SO’s Capital Investment
NextEra Energy plans more than $74 billion in capital investment through 2029 to expand clean energy capacity. Southern Company plans to invest $76 billion in capital expenditures through 2029 to strengthen its operations.
Both companies are investing in their generation to meet the rising demand, modernize the grid and upgrade the infrastructure to provide reliable round-the-clock electricity to customers.
NEE & SO’s Dividend Yield
Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company’s financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their shareholders.
Currently, the dividend yield for NextEra Energy is 2.71%, while the same for Southern Company is 3.32%.
Southern Company’s shares have lost 6.3% in the past six months against NextEra Energy’s rally of 15.2% and the industry’s return of 7.6%.
Price Performance (Six months)
Image Source: Zacks Investment Research
Summing Up
NextEra Energy and Southern Company are strategically investing in their infrastructure to serve millions of customers more efficiently and reliably.
Per the above discussion, both these utilities are evenly matched in most of the metrics. Yet, NextEra Energy with the Zacks Rank #2 (Buy) has a marginal edge over SO, which has a Zacks Rank #4 (Sell).
NEE’s better growth in earnings estimates, comparatively lower debt usage and better price performance make it a better choice in the utility space.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NextEra Energy vs. Southern Company: Which Is a Better Utility Pick?

Southern Company SO has become one of the largest players in the U.S. utility sector, providing electricity and natural gas to nearly 9 million customers through its seven subsidiaries. The company’s infrastructure is massive, with 46 gigawatts of power generation capacity, 200,000 miles of electric transmission and distribution lines, and more than 80,000 miles of natural gas pipelines. But what truly sets SO apart is how it’s evolved over time. It’s no longer just your typical electric utility.
The company has expanded the portfolio to include coal, natural gas, nuclear and hydroelectric power, while also increasing its investments in renewables and energy storage. A key moment in the growth came with the 2016 purchase of AGL Resources, which boosted SO’s natural gas operations and strengthened its position in the market.
Now, with the stock performing poorly over the last three months, investors are wondering: Is this a good time to buy in, or should they hold off and wait for a better opportunity?
For investors, the question comes down to Southern Company's solid growth strategy, strong infrastructure and the shift toward cleaner energy. Timing is everything — whether it’s the right moment to get in depends on how confident one is in the company’s future and the direction of the broader utility market.
SO’s Strong Fundamentals: Why the Stock’s Recent Dip Doesn’t Tell the Whole Story
Strategic Capital Investment Plan Execution: Southern Company is actively executing on a $76 billion capital plan to meet growing demand. This includes constructing approximately 2.5 gigawatts of new natural gas and battery storage generation, acquiring the 900 MW Lindsay Hill plant and advancing the South System 4 gas pipeline expansion, ensuring system reliability and capacity for future load.
Disciplined and Protective Contract Structures: New large-load contracts, particularly in Georgia under updated tariff rules, include strong customer protections for Southern Company. These feature minimum bills that cover all costs regardless of power usage and are structured with credit-quality counterparties, ensuring cost recovery and profitability for investments made to serve this new demand.
Massive and Concrete Large Load Pipeline: Southern Company has a formidable pipeline of more than 50 gigawatts of potential incremental load by the mid-2030s from data centers and manufacturers. This is not just speculative; the company has already signed contracts for 7 gigawatts by 2029 and is in advanced discussions for several more, providing high visibility into growth.
Exceptional and Sustained Electric Demand Growth: The company is experiencing its highest annual weather-normalized retail sales growth since 2010, excluding the pandemic, with growth across all customer classes. The commercial sector grew 3.5% in the third quarter, bolstered by a 17% increase in data center sales. This demonstrates robust and broad-based economic strength within Southern Company's service territories.
What Might Hinder the Growth Outlook?
SO Lags Sub-Industry and Sector: In the past three months, SO has experienced a marked underperformance relative to the Electric Power utility sub-industry (ZSI193M) and the broader utility sector (ZS14M). Southern Company's share price dropped 9%, which is a steeper decline compared with the Electric Power sub-industry and the utility sector's broader decrease of 1.6% and 2.2%, respectively. The graph highlights how SO has consistently trailed behind both the sub-industry and the utility sector, indicating weaker performance during this period.
3 Month Performance Snapshot
Image Source: Zacks Investment Research
Execution Risk on Massive Capital Program: Southern Company's $76 billion, multi-year capital plan carries inherent execution risk. Challenges like supply-chain delays, cost overruns, labor shortages or permitting issues — as historically seen with Vogtle and Kemper — could lead to budget breaches, schedule slips and earnings volatility.
Dependence on a Fraction of a Large Pipeline: While the load pipeline is more than 50 GW, management's disciplined forecast assumes only a fraction will materialize. The company's growth narrative is highly reliant on converting this speculative pipeline into firm contracts and a slowdown in data center or industrial investment could significantly lower realized growth.
High and Rising Interest Expense: The company cited higher interest costs as a partial offset to its strong quarterly earnings. With a large debt footprint and continued borrowing planned for capital projects, further increases in interest rates could materially pressure earnings, especially at the holding company level.
SO Stock: Patience or Action, What’s the Right Move for Investors?
Southern Company is executing a significant $76 billion capital investment plan to address growing demand, including new natural gas and battery storage generation and expanding its infrastructure to ensure long-term system reliability. The company is also benefiting from strong customer protections and high visibility into growth, with contracts for 7 gigawatts of load already signed and more in progress.
However, the company has underperformed relative to its industry, experiencing a 9% drop in share price in the past three months. Additionally, the large capital program carries execution risks, including potential delays, cost overruns and challenges in converting its massive load pipeline into firm contracts. With rising interest expenses and the pressure of an expansive debt footprint, investors should be cautious. Given this mix of strengths and potential challenges, investors should wait for a more opportune entry point instead of adding this Zacks Rank #3 (Hold) utility stock to their portfolios.
Key Picks
Investors interested in the utility sector might look at some better-ranked stocks like Algonquin Power & Utilities AQN, Alliant Energy LNT and Ameren Corporation AEE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Algonquin Power & Utilities is worth approximately $4.97 billion. It is a diversified, international utility company headquartered in Canada. Algonquin Power & Utilities operates two main business groups: a regulated services group that provides natural gas, electric and water utility services and a renewable energy group that generates clean power. The company's goal is to be a leader in the energy transition, focusing on sustainability and growth through both acquisitions and organic initiatives.
Alliant Energy is worth approximately $17.31 billion. The company is a regulated U.S. utility providing electric and natural gas services mainly in Iowa and Wisconsin. Alliant Energy operates through its subsidiaries, IPL and WPL, and has a strong focus on renewable energy, particularly wind and solar. It emphasizes long-term infrastructure investment and stable earnings from regulated operations.
Ameren is worth approximately $28.13 billion. The company is a Midwest utility company serving customers in Missouri and Illinois with electric and natural gas services. It operates through regulated subsidiaries and owns a large electric transmission network. Ameren is actively investing in clean energy, grid reliability and modernization to support long-term growth.
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Southern Company's Stability Makes It a Wise Hold Right Now

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan Global Select Equity ETF (Symbol: JGLO) where we have detected an approximate $366.7 million dollar outflow -- that's a 5.1% decrease week over week (from 105,375,000 to 100,050,000). Among the largest underlying components of JGLO, in trading today Southern Company (Symbol: SO) is off about 0.8%, Trane Technologies plc (Symbol: TT) is off about 1%, and Yum! Brands Inc (Symbol: YUM) is lower by about 0.3%. For a complete list of holdings, visit the JGLO Holdings page » The chart below shows the one year price performance of JGLO, versus its 200 day moving average:
Looking at the chart above, JGLO's low point in its 52 week range is $51.78 per share, with $69.39 as the 52 week high point — that compares with a last trade of $68.71. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - JGLO, SO, TT, YUM

Dominion Energy D trading above its 200-day SMA signals a bullish momentum. The company’s continued investments in electric and natural gas infrastructure, coupled with a growing focus on renewable energy, underpin its growth outlook. Solid contributions from organic assets and rising demand from an expanding customer base further enhance prospects.
Dominion Energy has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. Organic projects and acquired assets will further expand the company’s clean energy portfolio.
D’s 200 Day SMA
Image Source: Zacks Investment Research
The 200-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of a stock’s uptrend or downtrend.
In the past month, the company’s shares have gained 1.2% against the Zacks Utility- Electric Power industry’s 0.1% decline. In the same time period, the S&P 500 and the Zacks Utilities sector declined 0.3% and 0.2%, respectively.
Price Performance (One month)
Image Source: Zacks Investment Research
Should Dominion Energy be added to your portfolio purely on the back of recent price strength? Let’s dive deeper into the key factors that can help investors evaluate whether now is the right time to buy D stock.
Key Tailwinds Supporting Dominion Energy
Dominion Energy’s strategic portfolio realignment highlights its increased focus on regulated assets, reflected in ongoing investments in regulated infrastructure that support long-term operational growth. As part of this strategy, the company has divested select merchant generation assets and its electric retail energy marketing business to focus on core operations.
Dominion Energy has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. The company has planned to invest nearly $50 billion in the 2025-2029 period to further strengthen its operations. Dominion Energy’s long-term objective is to have more battery storage, solar, hydro and wind projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.
D continues to experience customer growth across its service areas in Virginia and South Carolina. The company’s utility rates are lower than the national average and its reliable services attract more customers and boost demand.
Dominion Energy is witnessing strong commercial load growth driven by rising demand from data centers. Since 2013, the company has added an average of 15 data centers annually. In the first nine months of 2025 alone, Dominion Energy added nearly 7.1 GW of capacity and continues to see robust data center-related demand.
Dominion Energy is undertaking a $2 billion initiative to underground 4,000 miles of its most outage-prone overhead distribution lines. The company has already completed more than 2,500 miles in Virginia, reducing average outage durations for affected customers from 11 hours to just 2 minutes. These efforts are strengthening system resilience and enhancing Dominion Energy’s ability to reliably and efficiently serve a growing customer base.
D Stock’s Earnings Estimates Moving North
The Zacks Consensus Estimate for D’s 2026 earnings per share indicates a year-over-year increase of 5.93%. Long-term earnings (three to five years) growth is pegged at 10.26%.
Image Source: Zacks Investment Research
NextEra Energy NEE is another large operator in this space and has the capacity to produce a huge volume of clean electricity for its customers. NEE is investing systematically to further expand its clean energy generation capacity.
The Zacks Consensus Estimate for NEE’s 2026 earnings per share indicates a year-over-year increase of 8.25%. Long-term earnings (three to five years) growth is pegged at 8.08%.
Dominion Energy’s Capital Return Program
The company has been distributing dividends to its shareholders for a long time. The current annual dividend of the company is $2.67. The current dividend yield of 4.51% is better than the industry’s yield of 2.92%. Check D’s dividend history here.
Another utility, The Southern Company SO, also rewards its shareholders through the payment of dividends at regular intervals. SO’s current annual dividend is pegged at $2.96 per share and its current dividend yield of 3.4% is better than the industry.
Total Debt to Capital
Utility operations are capital-intensive and the companies operating in this space need to borrow funds, as the internally generated funds are always enough to meet long-term capital requirements. The decline in the interest rate to the 3.5-3.75% range is beneficial for the utilities as it will reduce long-term project costs.
Dominion Energy’s debt to capital is 60.48%, which is lower than the industry’s average of 61.13%. This indicates that the company is utilizing lower debts compared with the industry peers to run its operations.
Image Source: Zacks Investment Research
D Stock Trades at Premium
Dominion Energy is currently valued at a premium compared with its industry on a forward 12-month P/E basis.
Image Source: Zacks Investment Research
Wrapping Up
Dominion Energy’s disciplined investments in expanding clean energy generation and reinforcing its grid infrastructure should enhance service reliability for customers. Growing demand for clean energy remains a favorable long-term tailwind for the company.
Yet, the stock’s valuation appears elevated relative to industry peers, which warrants caution. Investors who already hold this Zacks Rank #3 (Hold) stock may consider retaining it to benefit from steady dividend income, while prospective investors could wait for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dominion Energy Trades Above 200-Day SMA: How to Play the Stock?

Duke Energy DUK benefits from operating primarily as a regulated utility because regulation provides stable and predictable revenues. Regulators allow the company to earn approved returns on its investments, which supports consistent spending on grid modernization and clean energy projects. Its large customer base across multiple states further reduces risk by diversifying revenue sources and ensuring dependable returns.
Regulated structures allow the company to recover its costs through customer rates, including fluctuating fuel expenses. This cost-recovery framework enables the company to invest in large-scale generation assets, such as nuclear plant life extensions, while managing fuel price volatility and maintaining more stable electricity costs for customers.
Operating in constructive and growing jurisdictions with supportive regulatory environments reduces business risk and creates a lower-risk investment profile for Duke Energy. The company plans to invest nearly $190-$200 billion over the next decade, demonstrating its long-term growth strategy. Of this amount, $95-$105 billion is expected to be spent during 2026-2030, primarily on regulated infrastructure, grid upgrades and clean energy projects.
Regulatory frameworks also support timely returns on Duke Energy’s investments, with most electric capital spending eligible for efficient recovery mechanisms. Growth in gas utilities is supported by riders and annual rate adjustments. The company’s adjusted earnings per share (EPS) growth rate is anticipated to remain in the range of 5-7% through 2029.
Regulated Utilities Driving Stable Growth
Utilities benefit from being a regulated model through a supportive regulatory environment that allows for cost recovery on capital investments and helps maintain a stable earnings.
The Southern Company SO: The majority of SO’s $76 billion, five-year capital plan is allocated to its state-regulated utilities. The focus on regulated assets reduces merchant risk and provides a transparent pathway for earnings growth through rate base expansion and subsequent regulatory recovery.
PPL Corporation’s PPL regulated model allows it to earn approved returns and recover costs efficiently, using streamlined mechanisms for 60% of investments, while its $20 billion infrastructure plan through 2028 is expected to drive 9.8% annual rate base growth.
Estimates for DUK’s Earnings
The Zacks Consensus Estimate for 2025 and 2026 EPS indicates an increase of 7.12% and 6.1%, respectively, year over year.
Image Source: Zacks Investment Research
DUK Stock Trading at a Premium
DUK is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 17.49X compared with the industry average of 15.31X.
Image Source: Zacks Investment Research
DUK Stock Price Performance
In the past year, the company’s shares have risen 8.8% compared with the industry’s 22.9% growth.
Image Source: Zacks Investment Research
DUK’s Zacks Rank
The company currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How Does Duke Energy's Regulated Utility Model Drive Stable Growth?

The Southern Company’s SO subsidiary,Georgia Power, has planned one of the largest electric generation expansions in the country, backed by the state regulator’s approval to boost capacity by nearly 50%. The build-out is aimed largely at meeting soaring electricity demand from data centers, many tied to artificial intelligence development. The Public Service Commission voted unanimously to greenlight the plan, calling it necessary to keep up with projected growth.
It would rank among the largest power expansions in the country, driven by surging electricity demand from AI developers. While construction is estimated at $16.3 billion, customers could ultimately pay $50 billion to $60 billion over decades, factoring in interest and guaranteed utility profits.
The Cost-Sharing Argument Behind the Rate Proposal
Georgia Power and commission staff contend that large users — especially data centers — will bear a disproportionate share of the costs. They argue that spreading fixed costs across a broader customer base could eventually reduce residential bills once the current rate freeze ends in 2028.
Under the agreement, new customer revenues would put downward pressure on rates through 2031, potentially saving the average household about $102 annually. Supporters say this structure places much of the financial risk on the utility rather than on everyday customers.
Skepticism Over Demand Forecasts & Long-Term Risk
Opponents remain unconvinced that the projected demand will materialize. Critics argue that Georgia Power’s forecast relies too heavily on speculative data center construction. If that growth slows or reverses, they warn, existing customers could be left paying for decades of infrastructure that no longer serves its intended purpose.
Consumer advocates also note that downward pressure on rates does not guarantee lower bills. At best, they say, it may simply slow the pace of future increases rather than reverse them.
Political Backlash & Climate Concerns
The decision comes amid rising political scrutiny of electricity rates in Georgia. Recent elections unseated two Republican commissioners after campaigns focused heavily on repeated rate hikes. Incoming Democratic commissioners opposed the expansion but were outvoted.
Environmental groups have also pushed back, criticizing the reliance on new natural gas plants and warning of increased carbon emissions. Protests at the commission meeting underscored broader public unease about tying long-term energy policy to the uncertain future of AI-driven data centers.
SO’s Zacks Rank & Key Picks
Southern Company deals with the generation, transmission and distribution of electricity and serves approximately 9 million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like Ballard Power Systems Inc. BLDP, Ameren Corporation AEE and Dominion Energy, Inc. D, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ballard Power Systems focuses on developing and bringing to market PEM fuel cell systems for transportation, stationary and portable applications. The Zacks Consensus Estimate for BLDP's 2025 earnings indicates 43.9% year-over-year growth.
St. Louis, MO-based Ameren Corporation is a utility company that generates and distributes electricity and natural gas to residential, commercial, industrial and wholesale end markets in Missouri and Illinois. The Zacks Consensus Estimate for AEE's 2025 earnings indicates 8.2% year-over-year growth.
Richmond, VA-based Dominion Energy is a major energy company engaged in regulated and non-regulated electricity distribution, generation and transmission businesses. The Zacks Consensus Estimate for D's 2025 earnings indicates 22.7% year-over-year growth.
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Stock #2: Bullish Signs Signaling to Buy the Dip
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Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SO's Georgia Power Approves Power Expansion to Serve Data Centers

Fintel reports that on December 17, 2025, UBS maintained coverage of Southern (NYSE:SO) with a Neutral recommendation.
Analyst Price Forecast Suggests 18.06% Upside
As of December 5, 2025, the average one-year price target for Southern is $101.19/share. The forecasts range from a low of $75.31 to a high of $114.45. The average price target represents an increase of 18.06% from its latest reported closing price of $85.71 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Southern is 28,926MM, an increase of 0.04%. The projected annual non-GAAP EPS is 4.37.
What is the Fund Sentiment?
There are 3,100 funds or institutions reporting positions in Southern. This is an increase of 13 owner(s) or 0.42% in the last quarter. Average portfolio weight of all funds dedicated to SO is 0.35%, an increase of 4.98%. Total shares owned by institutions increased in the last three months by 2.09% to 951,199K shares. The put/call ratio of SO is 0.62, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 69,820K shares representing 6.34% ownership of the company. In its prior filing, the firm reported owning 68,964K shares , representing an increase of 1.23%. The firm decreased its portfolio allocation in SO by 4.27% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 35,408K shares representing 3.22% ownership of the company. In its prior filing, the firm reported owning 34,593K shares , representing an increase of 2.30%. The firm decreased its portfolio allocation in SO by 8.80% over the last quarter.
Capital World Investors holds 33,549K shares representing 3.05% ownership of the company. In its prior filing, the firm reported owning 7,981K shares , representing an increase of 76.21%. The firm increased its portfolio allocation in SO by 307.66% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 31,198K shares representing 2.83% ownership of the company. In its prior filing, the firm reported owning 30,445K shares , representing an increase of 2.41%. The firm decreased its portfolio allocation in SO by 9.08% over the last quarter.
Price T Rowe Associates holds 29,023K shares representing 2.64% ownership of the company. In its prior filing, the firm reported owning 17,527K shares , representing an increase of 39.61%. The firm increased its portfolio allocation in SO by 61.40% over the last quarter.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UBS Maintains Southern (SO) Neutral Recommendation

In a move to support a labor market showing signs of cooling, the U.S. Federal Reserve decided on Dec. 10, 2025, to lower the nation’s interest rate benchmark by 25 basis points, marking the third reduction this year. Following similar cuts in September and October, the federal funds rate now sits in a lower target range of 3.50-3.75%.
This move, which brought U.S. borrowing costs to their lowest level since 2022, has created a highly favorable environment for capital-intensive sectors such as utilities, which require substantial funding to support large-scale infrastructure and operations.
Amid this backdrop, Utility Exchange-Traded Funds (ETFs) emerge as a strategic vehicle for investors seeking diversified and efficient exposure to this defensive sector.
The Link Between Rate Cuts and the Utility Industry
The relationship between interest rates and the utility sector is inversely correlated. Utility companies require massive capital expenditures to maintain grids, upgrade infrastructure, and transition to renewable energy. When the Fed cuts rates, the cost of servicing the heavy debt loads required for these projects drops, directly boosting profit margins and cash flows of utility providers.
Furthermore, utilities are a classic "bond proxy." When interest rates fall, the yields on bonds and savings accounts become less attractive, leading income-focused investors to rotate into high-dividend sectors, such as utilities, in search of better returns. This is because utility stocks are traditionally known for their stable, dividend-paying nature.
This historical pattern suggests that as the Fed's latest cuts work their way through the economy, utility companies stand to gain significantly.
In a world of elevated macro uncertainty, this combination of lower financing costs, defensive cash flows, rapidly increasing electricity demand from AI data centers, and the electrification of all major industries across the board has further strengthened the investment case for utilities.
The Case for Utility ETFs Over Single Stocks
While the sector outlook is positive, investing in individual utility companies entails specific risks, including regulatory changes in a single region, project-specific delays, or company-specific financial issues. A diversified Utility ETF mitigates these idiosyncratic risks by offering exposure to a broad basket of companies across the electric, gas, water, and renewable energy segments.
This provides investors with a one-stop solution to benefit from the sector's tailwinds, eliminating the need to analyze and select individual stocks. ETFs also offer superior liquidity and typically have lower expense ratios than actively managed mutual funds, making them a cost-effective and prudent choice for building a resilient portfolio component.
Top-Ranked Utility ETFs to Buy
For investors looking to capitalize on the current monetary policy shift, several highly-rated Utility ETFs offer compelling options. The following funds carry a Zacks ETF Rank #2 (Buy) each, signaling strong potential for outperformance, and remain well-positioned to benefit from the lower rate environment.
Fidelity MSCI Utilities Index ETF FUTY
This fund, with net assets worth $2.25 billion, offers exposure to 67 utility stocks. Its top three holdings include prominent utility providers, NextEra Energy NEE (11.41%), Constellation Energy CEG (7.31%) and Southern Company SO (6.44%).
FUTY has gained 17.1% year to date. The fund charges 8 basis points (bps) as fees. It traded at a volume of 0.30 million shares in the last trading session.
State Street Utilities Select Sector SPDR ETF XLU
This fund, with assets under management (AUM) worth $22.16 billion, offers exposure to 31 companies from the electric utilities; water utilities; multi-utilities, independent power and renewable electricity producers; and gas utility industries. Its top three holdings include renowned utility providers, NEE (12.80%), CEG (8.37%) and SO (7.07%).
XLU has risen 16.6% year to date. The fund charges 8 bps as fees. It traded at a good volume of 19.17 million shares in the last trading session.
iShares U.S. Utilities ETF IDU
This fund, with net assets worth $1.78 billion, provides exposure to 44 U.S. companies that supply electricity, gas and water. Its top three holdings include renowned utility providers, NEE (11.05%), CEG (7.23%) and SO (6.10%).
IDU has gained 15.7% year to date. The fund charges 38 bps as fees. It traded at a volume of 0.09 million shares in the last trading session.
Vanguard Utilities ETF VPU
This fund, with net assets worth $8.3 billion, provides exposure to 68 U.S. companies within the utilities sector. Its top three holdings include renowned utility providers, NEE (11.45%), CEG (7.34%) and Duke Energy DUK (6.21%).
VPU has soared 17.1% year to date. The fund charges 9 bps as fees. It traded at a volume of 0.21 million shares in the last trading session.
Invesco Dorsey Wright Utilities Momentum ETF PUI
This fund, with market value worth $51.5 million, provides exposure to 35 U.S. exchange-listed companies within the Utilities sector that exhibit powerful relative strength characteristics. Its top three holdings include prominent utility providers, Atmos Energy ATO (3.91%), American Water Works AWK (3.89%) and NRG Energy NRG (3.82%).
PUI has gained 16.8% year to date. The fund charges 81 bps as fees. It traded at a volume of 0.003 million shares in the last trading session.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.