Sempra Energy (SRE): 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.

Sempra Energy ( SRE) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.2%. By the end of trading, Sempra Energy rose 66 cents (1%) to $66.57 on average volume. Throughout the day, 1.4 million shares of Sempra Energy exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $65.77-$66.57 after having opened the day at $66.02 as compared to the previous trading day's close of $65.91. Other companies within the Utilities sector that increased today were: U.S. Geothermal ( HTM), up 16.4%, Transportadora de Gas del Sur ( TGS), up 12.3%, Clean Energy Fuels Corporation ( CLNE), up 6.7%, and Gas Natural ( EGAS), up 4.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Sempra Energy, through its subsidiaries, operates as an energy services company. Sempra Energy has a market cap of $15.98 billion and is part of the utilities industry. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Monday. Currently there are five analysts that rate Sempra Energy a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Sempra Energy as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Warren Buffett's Berkshire Hathaway Will Not Buy Bankrupt Oncor

Buffett's Berkshire Hathaway Outlook Raised at S&P

Jim Cramer on ADP, Herbalife, Nike, Foot Locker, Estee Lauder, Sempra Energy, Oncor, Salesforce and Gardening!

Fiat Chrysler and the Eclipse - 5 Things You Must Know Before the Market Opens