AES Corp (AES): 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.

AES ( AES) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.3%. By the end of trading, AES fell 12 cents (-1.1%) to $11.09 on heavy volume. Throughout the day, 7.9 million shares of AES exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $11.04-$11.30 after having opened the day at $11.22 as compared to the previous trading day's close of $11.21. Other companies within the Utilities sector that declined today were: Centrais Eletricas Brasileiras ( EBR), down 4.5%, Centrais Eletricas Brasileiras ( EBR.B), down 3%, China Hydroelectric Corporation ( CHC), down 2.9%, and Clean Energy Fuels Corporation ( CLNE), down 2.3%.
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The AES Corporation, a power company, operates a portfolio of electricity generation and distribution businesses. Its Generation business owns and/or operates power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. AES has a market cap of $8.41 billion and is part of the utilities industry. Shares are up 4.1% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate AES a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates AES as a hold. Among the primary strengths of the company is its revenue growth. 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, Empresa Distribuidora y Comercializadora No ( EDN), up 12.1%, American DG Energy ( ADGE), up 4.6%, Summit Midstream Partners ( SMLP), up 3.4%, and Ellomay Capital ( ELLO), up 2.7%, were all gainers within the utilities sector with FirstEnergy ( FE) 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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