Jim Cramer Picked 10 Stocks For His Fantasy Stock Portfolio

7. The Southern Company (NYSE:SO)

Number of Hedge Fund Holders: 48

The Southern Company (NYSE:SO) is one of the stocks Jim Cramer picked for his fantasy stock portfolio. Cramer said that the “stock’s been on fire” after the completion of its nuclear power plant construction project in Georgia. He commented:

“Typically, I go with something healthcare here, but that group is down in the dumps right now. So instead I’ve got a kind of a new one, a growth utility, Southern Company. That’s right. Utilities are classic defensive names. Even in a softer economy, everybody has to pay their gas and electric bills. Usually, these are slow and steady stocks with generous dividends but anyone who’s been paying attention over the past couple years knows that things are changing in the sector.

With the advent of AI and the great data center buildout, we’re seeing tremendous growth in demand for electricity. So suddenly many utilities are traded like growth stocks, and that includes Southern Company with regulated electric utilities serving about 4.5 million customers in three states, regulated gas utilities serving roughly 4.4 million customers in four states. Now at the same time, this is also a competitive power generation company and a leading distributed energy infrastructure company…

For years, Southern Company had an overhang from a gigantic nuclear power plant construction project in Georgia… The overruns were outrageous, billions and billions dollars over budget. But that project was finally completed a year and a half ago. Ever since then, the stock’s been on fire, especially with Southern Company’s all about the Southeast where we’re seeing a lot of new manufacturing. It doesn’t hurt, it pays 3.2% yield. So what’s the NFL tight end equivalent for Southern Company? Oh, well, that is easy. It’s Las Vegas Raiders, Brock Powers.”

The Southern Company (NYSE:SO) produces and distributes electricity and natural gas while managing power generation assets, pipelines, and storage facilities. Additionally, the company provides energy solutions, microgrids, and communications services for retail, commercial, and institutional customers.