3 Stocks Pushing The Utilities Sector Lower

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 27 points (-0.2%) at 12,904 as of Thursday, Nov. 8, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,218 issues advancing vs. 1,656 declining with 135 unchanged.

The Utilities sector currently is unchanged today versus the S&P 500, which is down 0.2%. A company within the sector that fell today was Centrais Eletricas Brasileiras ( EBR.B), up 2.8%. Top gainers within the sector include FirstEnergy ( FE), up 1.9%, Southern ( SO), up 1.8% and Exelon ( EXC), up 0.8%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Centrais Eletricas Brasileiras ( EBR) is one of the companies pushing the Utilities sector lower today. As of noon trading, Centrais Eletricas Brasileiras is down $0.13 (-2.5%) to $5.03 on light volume Thus far, 284,925 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $5.01-$5.10 after having opened the day at $5.05 as compared to the previous trading day's close of $5.16.

Centrais Eletricas Brasileiras S.A. Eletrobras, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. Centrais Eletricas Brasileiras has a market cap of $8.2 billion and is part of the utilities industry. The company has a P/E ratio of 0.0, below the S&P 500 P/E ratio of 17.7. Shares are down 45.3% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate Centrais Eletricas Brasileiras a buy, 2 analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Centrais Eletricas Brasileiras as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins. Get the full Centrais Eletricas Brasileiras Ratings Report now.

2. As of noon trading, CPFL Energy ( CPL) is down $0.27 (-1.2%) to $22.34 on light volume Thus far, 166,323 shares of CPFL Energy exchanged hands as compared to its average daily volume of 532,400 shares. The stock has ranged in price between $22.26-$22.75 after having opened the day at $22.51 as compared to the previous trading day's close of $22.61.

CPFL Energia S.A., through its subsidiaries, engages in the generation, distribution, and sale of electric energy in Brazil. It generates electricity through hydroelectric, thermoelectric, sugarcane biomass, and wind power plants. CPFL Energy has a market cap of $10.9 billion and is part of the utilities industry. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are down 19.4% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate CPFL Energy a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates CPFL Energy as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. Get the full CPFL Energy Ratings Report now.

1. As of noon trading, Basic Sanitation Company of the State of Sa ( SBS) is down $1.16 (-1.4%) to $82.10 on light volume Thus far, 135,619 shares of Basic Sanitation Company of the State of Sa exchanged hands as compared to its average daily volume of 364,600 shares. The stock has ranged in price between $81.85-$83.48 after having opened the day at $81.98 as compared to the previous trading day's close of $83.26.

Companhia de Saneamento Basico do Estado de S o Paulo SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and governmental customers in the State of S o Paulo. Basic Sanitation Company of the State of Sa has a market cap of $9.6 billion and is part of the utilities industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 51.9% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Basic Sanitation Company of the State of Sa a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Basic Sanitation Company of the State of Sa as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Basic Sanitation Company of the State of Sa Ratings Report now.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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