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The Zacks Analyst Blog Highlights: Southern, Constellation Brands, Vale, CME Group and Sempra Energy


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For Immediate Release

Chicago, IL - August 23, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Southern Company SO , Constellation Brands STZ , Vale VALE , CME Group CME and Sempra Energy SRE .

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Here are highlights from Wednesday's Analyst Blog:

Top Analyst Reports for Southern Company, Constellation Brands and Vale

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Southern Company, Constellation Brands and Vale. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of  today's research reports here >>>

Southern Company 's shares have outperformed the Zacks Electric Power industry in the last six months, gaining +4.4% vs +3.3%. The Zacks analyst thinks Southern Company is one of the largest and best-managed electric utility holding companies in the United States, dominating the power business across the southeastern region.

With good rate base growth and constructive regulation, it is expected to generate steady earnings and dividend growth in the coming years through long-term power contracts. Additionally, SO's $12 billion AGL Resources buy has significantly increased its customer base and diversified offerings.

However, continued timing and cost overrun issues over two large construction projects - Vogtle and Kemper - are major overhangs. While the $20 billion Vogtle nuclear plant has gone well over budget and is years behind schedule, Southern's Kemper project suffered yet another setback with the suspension of all coal gasification operations amid additional cost burden. The interplay of these factors account for our conservative investment thesis.

(You can read the full research report on Southern Company here >>> ).

Shares of Constellation Brands have gained more than +1.9% in the past year driven by a robust surprise history, exceeding the performance of the Zacks Alcoholic Beverages industry, which has lost -7.3% over the same period. Though the company missed earnings estimates in first-quarter fiscal 2019 due to higher marketing expenses and transportation costs, it delivered earnings beat in the preceding 14 quarters.

Further, the company is witnessing solid top-line trends driven by strong depletions in the beer business. Notably, the fiscal first quarter results reflected the 9th sales beat in last 11 quarters. Consequently, management raised its GAAP earnings view for fiscal 2019.

The Zacks analyst thinks the company is benefiting from consistent focus on brand-building efforts and product innovations. However, the market remains concerned about the outcome of the company's recent $5 billion investment to expand stake in Canada's Canopy Growth. Moreover, stiff competition, higher debt position and taxes remain concerns.

(You can read the full research report on Constellation Brands here >>> ).

Buy-ranked  Vale 's shares have handily outperformed the Zacks Basic Materials sector in the past year (+24.3% vs. +6.2%). Vale expects to produce more than 100 million tons (Mt) per quarter in the second half of 2018 to meet its full year guidance of approximately 390 Mt.

The company will be able to achieve this as volumes continue to improve at its S11D mine. Vale's cash cost is expected to be lower than $13 per ton in second-half 2018, benefiting from the competitiveness of growing S11D volumes, seasonally lower costs and higher production. Vale is steadily deleveraging its balance sheet via increased free cash flow generation.

The Zacks analyst thinks the company remains on track to boost shareholders' value over time. Steel demand continues to be strong backed by growing global economy, strong machinery and construction sector activity.

Steel-makers continue to look for higher iron ore grade and low alumina iron ore to increase productivity while lowering emissions. In this regard, Vale is well positioned as a major supplier of sinter fines combining high iron and low alumina.

(You can read the full research report on Vale here >>> ).

Other noteworthy reports we are featuring today include CME Group and Sempra Energy.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.  See these high-potential stocks free >>.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Southern Company (The) (SO): Free Stock Analysis Report

Sempra Energy (SRE): Free Stock Analysis Report

Constellation Brands Inc (STZ): Free Stock Analysis Report

VALE S.A. (VALE): Free Stock Analysis Report

CME Group Inc. (CME): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: SO , SRE , STZ , VALE , CME



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