PPL Corp (PPL): Today's Featured Utilities Winner

PPL ( PPL) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.2%. By the end of trading, PPL rose 28 cents (1%) to $27.37 on average volume. Throughout the day, 3.7 million shares of PPL exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in a price between $27.12-$27.45 after having opened the day at $27.18 as compared to the previous trading day's close of $27.09. Other companies within the Utilities sector that increased today were: Energy Company of Parana ( ELP), up 4%, Pure Cycle Corporation ( PCYO), up 2.6%, Centrais Eletricas Brasileiras ( EBR), up 2.6%, and Centrais Eletricas Brasileiras ( EBR.B), up 2.4%.

PPL Corporation, an energy and utility holding company, engages in the generation, transmission, distribution, and sale of electricity to wholesale and retail customers in the United States and the United Kingdom. PPL has a market cap of $15.88 billion and is part of the utilities industry. The company has a P/E ratio of 9.7, equal to the average utilities industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 6.9% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate PPL a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates PPL as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and growth in earnings per share. 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 13.7%, Transportadora de Gas del Sur ( TGS), down 5.1%, Dynegy ( DYN), down 4.3%, and Clean Energy Fuels Corporation ( CLNE), down 3.8%, were all losers within the utilities sector with Sempra Energy ( SRE) 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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