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The Zacks Analyst Blog Highlights: Fomento Economico Mexicano, Southern Company, DISH Network, NextEra Energy and Charles Schwab

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For Immediate Release

Chicago, IL – January 30, 2020 – 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: Fomento Economico Mexicano FMX, Southern Company SO, DISH Network (DISH - Free Report) , NextEra Energy NEE and Charles Schwab SCHW.

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Fomento Economico, Southern Company and DISH

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 Fomento Economico Mexicano (FMX), Southern Company (SO) and DISH Network (DISH - Free Report) . 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 >>>

Fomento Economico’s shares have underperformed the Zacks Soft Drinks Beverages industry over the past year (+2.6% vs. +16.3%). The Zacks analyst believes that the company’s growth via acquisition strategy is reaping benefits. Its sound fundamentals and growth efforts position it for growth ahead.

The recent acquisition of minority stake in Jetro Restaurant Depot, AGV and 40% stake in Grupo Socofar, as well as joint venture with Raízen reveal its commitment to invest in the expansion of core businesses. Furthermore, its third-quarter 2019 results reflect significant strength across all businesses.

However, the company witnessed soft operating results across some divisions in the past few quarters. Operating margins at FEMSA Comercio’s Health and Proximity Divisions in third-quarter 2019 were hurt by operating expense deleverage in these units. Tariff-related and higher input costs are headwinds hurting its bottling unit. 

Shares of Southern Company have gained +26.7% in the past six months against the Zacks Electric Power industry's rise of +14.8%. The Zacks analyst believes that leveraging the demographics of its operating territories, as in healthy population and job growth, the firm has gradually increased its customer base.

With good rate base growth and constructive regulation, Southern Company is expected to generate steady earnings and dividend growth in the coming years. However, elevated leverage of the firm, along with continued timing and cost overrun issues over its Vogtle project, are major overhangs.

While the electric utility holding company’s debt-to-capital ratio of 57% restricts financial flexibility, its $25-billion Vogtle nuclear plant has already exceeded budget and is years behind schedule. As such, Southern Company warrants a cautious stance from the investors.

DISH’s shares have gained +6.9% over the past three months against the Zacks Cable Television industry's rise of +1.7%. The Zacks analyst believes that DISH’s efforts to diversify its business from being a pure-play satellite-TV operator to an Internet TV operator are noteworthy.

The Sling TV subscriber base is also expanding. The company recently raised Sling TV prices and also introduced channels. Further, its focus on acquiring and retaining subscribers, who will be profitable over the long term, is expected to drive growth.

Additionally, DISH is set to enter the U.S. wireless market as the fourth, nationwide, facilities-based network competitor by acquiring Sprint’s prepaid businesses and customers, and 14 MHz of nationwide 800 MHz spectrum. This is expected to drive DISH’s top line over the long haul.

Other noteworthy reports we are featuring today include NextEra Energy and Charles Schwab.

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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 for information about the performance numbers displayed in this press release.

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