Exelon Corp (EXC): 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.

Exelon ( EXC) 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, Exelon fell $2.20 (-6.2%) to $33.58 on heavy volume. Throughout the day, 30.5 million shares of Exelon exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in price between $33.24-$36.84 after having opened the day at $35.76 as compared to the previous trading day's close of $35.78. Other companies within the Utilities sector that declined today were: Transportadora de Gas del Sur ( TGS), down 8.1%, Pure Cycle Corporation ( PCYO), down 3.2%, Public Service Enterprise Group ( PEG), down 2.8%, and GreenHunter Energy ( GRH), down 2.6%.
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Exelon Corporation, a utility services holding company, engages in the energy generation and distribution business in the United States. Exelon has a market cap of $30.29 billion and is part of the utilities industry. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are down 18.2% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Exelon a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Exelon as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, China Hydroelectric Corporation ( CHC), up 33.1%, Empresa Distribuidora y Comercializadora No ( EDN), up 7.9%, Korea Electric Power ( KEP), up 6.6%, and Ellomay Capital ( ELLO), up 6.4%, were all gainers within the utilities sector with Calpine ( CPN) 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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