3 Stocks Pushing The Utilities Sector Lower

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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 57 points (-0.4%) at 13,961 as of Wednesday, Feb. 13, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 1,624 issues advancing vs. 1,238 declining with 155 unchanged.

The Utilities sector currently sits up 0.2% versus the S&P 500, which is unchanged. A company within the sector that fell today was Exelon ( EXC), up 1.0%. Top gainers within the sector include CPFL Energy ( CPL), up 1.7%, Centrais Eletricas Brasileiras ( EBR), up 1.2%, Korea Electric Power ( KEP), up 2.0%, Centrais Eletricas Brasileiras ( EBR.B), up 1.2% and FirstEnergy ( FE), up 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Calpine ( CPN) is one of the companies pushing the Utilities sector lower today. As of noon trading, Calpine is down $0.31 (-1.6%) to $19.47 on heavy volume Thus far, 2.3 million shares of Calpine exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $19.22-$19.90 after having opened the day at $19.85 as compared to the previous trading day's close of $19.78.

Calpine Corporation, an independent wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. Calpine has a market cap of $9.3 billion and is part of the utilities industry. The company has a P/E ratio of 110.9, above the S&P 500 P/E ratio of 17.7. Shares are up 10.1% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Calpine a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Calpine as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Calpine Ratings Report now.

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2. As of noon trading, ONEOK ( OKE) is down $0.29 (-0.6%) to $47.88 on light volume Thus far, 247,539 shares of ONEOK exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $47.88-$48.22 after having opened the day at $48.14 as compared to the previous trading day's close of $48.17.

ONEOK, Inc., a diversified energy company, engages in the gathering, processing, storage, and transportation of natural gas and natural gas liquids in the United States. The company operates through three segments: ONEOK Partners, Natural Gas Distribution, and Energy Services. ONEOK has a market cap of $9.8 billion and is part of the utilities industry. The company has a P/E ratio of 29.0, above the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate ONEOK a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ONEOK as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full ONEOK Ratings Report now.

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1. As of noon trading, Edison International ( EIX) is down $0.21 (-0.4%) to $47.79 on light volume Thus far, 419,781 shares of Edison International exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $47.76-$48.31 after having opened the day at $48.08 as compared to the previous trading day's close of $48.00.

Edison International, through its subsidiaries, engages in the generation and distribution of electric power. It operates in two segments, Electric Utility and Competitive Power Generation. Edison International has a market cap of $15.6 billion and is part of the utilities industry. Shares are up 6.2% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Edison International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Edison International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Edison International Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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