Dominion Resources Inc (D): Today's Featured Utilities Winner

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.

Dominion Resources ( D) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.1%. By the end of trading, Dominion Resources rose $1.02 (2.1%) to $50.21 on heavy volume. Throughout the day, 4.1 million shares of Dominion Resources exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $48.94-$50.36 after having opened the day at $49.05 as compared to the previous trading day's close of $49.19. Other companies within the Utilities sector that increased today were: Clean Energy Fuels Corporation ( CLNE), up 10.8%, China Hydroelectric Corporation ( CHC), up 8.4%, Energy Company of Parana ( ELP), up 4.1%, and Pure Cycle Corporation ( PCYO), up 2.6%.
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Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. It operates in three segments: DVP, Dominion Generation, and Dominion Energy. Dominion Resources has a market cap of $28.35 billion and is part of the utilities industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are down 7.1% year to date as of the close of trading on Monday. Currently there are four analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Dominion Resources as a buy. The company's strongest point has been its very decent return on equity which we feel should persist. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, U.S. Geothermal ( HTM), down 6.1%, Ocean Power Technologies ( OPTT), down 5.4%, American Midstream Partners ( AMID), down 5%, and Active Power ( ACPW), down 3.3%, were all laggards within the utilities sector with NRG Energy ( NRG) being today's utilities sector laggard.

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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