GenOn Energy Inc (GEN): 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.

GenOn Energy ( GEN) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.3%. By the end of trading, GenOn Energy fell 3 cents (-1.2%) to $2.53 on light volume. Throughout the day, 9.9 million shares of GenOn Energy exchanged hands as compared to its average daily volume of 14.3 million shares. The stock ranged in price between $2.52-$2.58 after having opened the day at $2.56 as compared to the previous trading day's close of $2.56. Other companies within the Utilities sector that declined today were: Transportadora de Gas del Sur ( TGS), down 5.9%, Centrais Eletricas Brasileiras ( EBR.B), down 4.5%, CPFL Energy ( CPL), down 2.4%, and Empresa Distribuidora y Comercializadora No ( EDN), down 2.3%.
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GenOn Energy, Inc., together with its subsidiaries, provides energy, capacity, ancillary, and other energy services to wholesale customers in the energy market in the United States. GenOn Energy has a market cap of $1.98 billion and is part of the utilities industry. Shares are down 1.9% year to date as of the close of trading on Thursday. Currently there are five analysts that rate GenOn Energy a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates GenOn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

On the positive front, China Hydroelectric Corporation ( CHC), up 29.6%, Pure Cycle Corporation ( PCYO), up 10.6%, American States Water ( AWR), up 2.2%, and Ellomay Capital ( ELLO), up 2.2%, were all gainers within the utilities sector with Duke Energy Corporation ( DUK) being today's featured utilities sector leader.

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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