EQT Corp (EQT): 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.

EQT ( EQT) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.4%. By the end of trading, EQT fell $1.80 (-3%) to $58.68 on average volume. Throughout the day, 1.8 million shares of EQT exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $58.61-$60.45 after having opened the day at $60.45 as compared to the previous trading day's close of $60.48. Other companies within the Utilities sector that declined today were: Centrais Eletricas Brasileiras ( EBR.B), down 9.8%, Centrais Eletricas Brasileiras ( EBR), down 7.2%, Energy Company of Parana ( ELP), down 3.5%, and Energy Company of Minas Gerais ( CIG), down 3.2%.
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EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. It operates in three segments: EQT Production, EQT Midstream, and Distribution. EQT has a market cap of $9.04 billion and is part of the utilities industry. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 2.4% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate EQT a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates EQT as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Consolidated Water Company ( CWCO), up 4.8%, American DG Energy ( ADGE), up 2.8%, Delta Natural Gas Company ( DGAS), up 2.8%, and Inergy L.P ( NRGY), up 2%, were all gainers within the utilities sector with NextEra Energy ( NEE) 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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