TransCanada Corp (TRP): Today's Featured Utilities Winner

TransCanada ( TRP) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.4%. By the end of trading, TransCanada rose 31 cents (0.7%) to $43.04 on light volume. Throughout the day, 403,437 shares of TransCanada exchanged hands as compared to its average daily volume of 580,000 shares. The stock ranged in a price between $42.74-$43.54 after having opened the day at $42.78 as compared to the previous trading day's close of $42.73. Other companies within the Utilities sector that increased today were: Delta Natural Gas Company ( DGAS), up 4.3%, Dynegy ( DYN), up 2.5%, and Ocean Power Technologies ( OPTT), up 1.8%.

Transcanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. TransCanada has a market cap of $30.11 billion and is part of the utilities industry. The company has a P/E ratio of 20.5, above the average utilities industry P/E ratio of 20.3 and above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Thursday. Currently there are three analysts that rate TransCanada a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates TransCanada as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

On the negative front, GreenHunter Energy ( GRH), down 10.1%, China Hydroelectric Corporation ( CHC), down 5.6%, Niska Gas Storage Partners ( NKA), down 3.5%, and Unitil Corporation ( UTL), down 2.7%, were all losers within the utilities sector with Ameren ( AEE) being today's utilities sector loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).
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