Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Utilities sector as a whole closed the day down 0.4% versus the S&P 500, which was down 1.1%. Laggards within the Utilities sector included

U S Geothermal

(

HTM

), down 7.7%,

Pure Cycle

(

PCYO

), down 3.1%,

Ocean Power Technologies

(

OPTT

), down 2.6%,

Centrais Eletricas Brasileiras

(

EBR.B

), down 6.4% and

American Midstream Partners

(

AMID

), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Ocean Power Technologies

(

OPTT

) is one of the companies that pushed the Utilities sector lower today. Ocean Power Technologies was down $0.03 (2.6%) to $1.12 on light volume. Throughout the day, 70,560 shares of Ocean Power Technologies exchanged hands as compared to its average daily volume of 406,700 shares. The stock ranged in price between $1.10-$1.14 after having opened the day at $1.13 as compared to the previous trading day's close of $1.15.

Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the United States, Europe, Asia, and Australia. Ocean Power Technologies has a market cap of $22.0 million and is part of the energy industry. Shares are down 40.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Ocean Power Technologies

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OPTT go as follows:

  • Net operating cash flow has declined marginally to -$3.17 million or 2.92% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, OCEAN POWER TECHNOLOGIES INC has marginally lower results.
  • OPTT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.18%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, OCEAN POWER TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electrical Equipment industry average. The net income increased by 12.4% when compared to the same quarter one year prior, going from -$3.75 million to -$3.28 million.
  • OCEAN POWER TECHNOLOGIES INC has improved earnings per share by 47.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, OCEAN POWER TECHNOLOGIES INC continued to lose money by earning -$0.94 versus -$1.42 in the prior year. This year, the market expects an improvement in earnings (-$0.76 versus -$0.94).

You can view the full analysis from the report here:

Ocean Power Technologies Ratings Report

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At the close,

Pure Cycle

(

PCYO

) was down $0.19 (3.1%) to $5.92 on light volume. Throughout the day, 34,614 shares of Pure Cycle exchanged hands as compared to its average daily volume of 47,000 shares. The stock ranged in price between $5.83-$6.20 after having opened the day at $6.14 as compared to the previous trading day's close of $6.11.

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area. Pure Cycle has a market cap of $151.0 million and is part of the energy industry. Shares are down 3.5% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Pure Cycle a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

Pure Cycle

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on PCYO go as follows:

  • PCYO's very impressive revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues leaped by 64.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PCYO's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.48, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PURE CYCLE CORP is currently very high, coming in at 79.82%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -56.25% is in-line with the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Water Utilities industry and the overall market, PURE CYCLE CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Pure Cycle Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

U S Geothermal

(

HTM

) was another company that pushed the Utilities sector lower today. U S Geothermal was down $0.04 (7.7%) to $0.48 on heavy volume. Throughout the day, 569,798 shares of U S Geothermal exchanged hands as compared to its average daily volume of 354,500 shares. The stock ranged in price between $0.48-$0.52 after having opened the day at $0.52 as compared to the previous trading day's close of $0.52.

U S Geothermal has a market cap of $56.1 million and is part of the energy industry. Shares are up 42.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate U S Geothermal a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.