Entergy Corp (ETR): 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.

Entergy ( ETR) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole was unchanged today. By the end of trading, Entergy fell 72 cents (-1.1%) to $64.66 on light volume. Throughout the day, 391,339 shares of Entergy exchanged hands as compared to its average daily volume of 998,500 shares. The stock ranged in price between $64.62-$65.38 after having opened the day at $65.25 as compared to the previous trading day's close of $65.38. Other companies within the Utilities sector that declined today were: Consolidated Water Company ( CWCO), down 3.3%, Ocean Power Technologies ( OPTT), down 2.5%, NRG Energy ( NRG), down 2.3%, and SJW Corporation ( SJW), down 1.9%.
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Entergy Corporation, together with its subsidiaries, engages in the electric power production and retail electric distribution operations in the United States. The company operates in two segments, Utility and Entergy Wholesale Commodities. Entergy has a market cap of $11.44 billion and is part of the utilities industry. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are down 10.6% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Entergy a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Entergy as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, U.S. Geothermal ( HTM), up 6.1%, Transportadora de Gas del Sur ( TGS), up 5.7%, Western Gas Equity Partners ( WGP), up 3%, and Pure Cycle Corporation ( PCYO), up 2.5%, were all gainers within the utilities sector with ONEOK ( OKE) 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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