Skip to main content

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.

All three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 128 points (0.8%) at 16,805 as of Friday, Oct. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,914 issues advancing vs. 1,162 declining with 133 unchanged.

The Utilities sector as a whole closed the day up 0.7% versus the S&P 500, which was up 0.7%. Top gainers within the Utilities sector included

GreenHunter Resources

(

GRH

), up 6.1%,

Centrais Eletricas Brasileiras

(

EBR.B

), up 9.9%,

Southcross Energy Partners

TheStreet Recommends

(

SXE

), up 2.4%,

TransAlta

(

TAC

), up 1.8% and

Empresa Distribuidora y Comercializadora No

(

EDN

), up 3.0%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Southcross Energy Partners

(

SXE

) is one of the companies that pushed the Utilities sector higher today. Southcross Energy Partners was up $0.47 (2.4%) to $20.35 on light volume. Throughout the day, 22,954 shares of Southcross Energy Partners exchanged hands as compared to its average daily volume of 62,100 shares. The stock ranged in a price between $20.05-$20.50 after having opened the day at $20.05 as compared to the previous trading day's close of $19.88.

Southcross Energy Partners, L.P., together with its subsidiaries, provides natural gas gathering, processing, treating, compression, and transportation services in the United States. It also offers natural gas liquid (NGL) fractionation and transportation services. Southcross Energy Partners has a market cap of $470.0 million and is part of the utilities industry. Shares are up 10.3% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Southcross Energy Partners a buy, no analysts rate it a sell, and 3 rate 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.

TheStreet Ratings rates Southcross Energy Partners as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on SXE go as follows:

  • In its most recent trading session, SXE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for SOUTHCROSS ENERGY PRTNRS LP is currently extremely low, coming in at 4.00%. Regardless of SXE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.51% trails 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 Oil, Gas & Consumable Fuels industry and the overall market, SOUTHCROSS ENERGY PRTNRS LP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has significantly increased by 592.72% to $9.53 million when compared to the same quarter last year. In addition, SOUTHCROSS ENERGY PRTNRS LP has also vastly surpassed the industry average cash flow growth rate of -5.05%.

You can view the full analysis from the report here:

Southcross Energy Partners 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.

At the close,

Centrais Eletricas Brasileiras

(

EBR.B

) was up $0.34 (9.9%) to $3.79 on light volume. Throughout the day, 105,758 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 145,500 shares. The stock ranged in a price between $3.63-$3.86 after having opened the day at $3.63 as compared to the previous trading day's close of $3.45.

Centrais Eletricas Brasileiras S.A. - Eletrobras, together with its subsidiaries, generates, transmits, and distributes electricity in Brazil. It projects, builds, and operates generating power plants, and electric power transmission and distribution lines. Centrais Eletricas Brasileiras has a market cap of $4.9 billion and is part of the utilities industry. Shares are down 21.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Centrais Eletricas Brasileiras a buy, no analysts rate it a sell, and none rate 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.

TheStreet Ratings rates Centrais Eletricas Brasileiras as a

sell

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

Highlights from TheStreet Ratings analysis on EBR.B go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electric Utilities industry. The net income has significantly decreased by 149.0% when compared to the same quarter one year ago, falling from $75.75 million to -$37.13 million.
  • The gross profit margin for ELETROBRAS-CENTR ELETR BRAS is currently extremely low, coming in at 7.44%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -1.16% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $146.37 million or 80.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.24%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% compared to the year-earlier 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electric Utilities industry and the overall market, ELETROBRAS-CENTR ELETR BRAS'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:

Centrais Eletricas Brasileiras 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.

GreenHunter Resources

(

GRH

) was another company that pushed the Utilities sector higher today. GreenHunter Resources was up $0.07 (6.1%) to $1.22 on light volume. Throughout the day, 124,482 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 369,200 shares. The stock ranged in a price between $1.15-$1.24 after having opened the day at $1.15 as compared to the previous trading day's close of $1.15.

GreenHunter Resources has a market cap of $40.1 million and is part of the utilities industry. Shares are down 0.9% year-to-date as of the close of trading on Thursday.

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.