Calpine Corp (CPN): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Calpine ( CPN) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Calpine fell 23 cents (-1.3%) to $17.26 on average volume. Throughout the day, 3.6 million shares of Calpine exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $17.19-$17.59 after having opened the day at $17.58 as compared to the previous trading day's close of $17.49. Other companies within the Utilities sector that declined today were: Energy Company of Minas Gerais ( CIG), down 2.6%, National Electricity Company of Chile ( EOC), down 2.4%, American States Water ( AWR), down 2.4%, and Basic Sanitation Company of the State of Sa ( SBS), down 2.3%.
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Calpine Corporation, an independent wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. Calpine has a market cap of $8.24 billion and is part of the utilities industry. Shares are up 7.1% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Calpine a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Calpine as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share.

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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