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.
Calpine (
CPN) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.7%. By the end of trading, Calpine rose 60 cents (3.2%) to $19.30 on heavy volume. Throughout the day, 4.3 million shares of Calpine exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $18.71-$19.44 after having opened the day at $18.74 as compared to the previous trading day's close of $18.70. Other companies within the Utilities sector that increased today were:
Empresa Distribuidora y Comercializadora No (
EDN), up 8.4%,
Cadiz (
CDZI), up 7.3%,
Delta Natural Gas Company (
DGAS), up 6.8%, and
Huaneng Power International (
HNP), up 5.3%.
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Calpine Corporation, a 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 $8.44 billion and is part of the utilities industry. The company has a P/E ratio of 44, above the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday. Currently there are six analysts that rate Calpine a buy, no analysts rate it a sell, and four rate it a hold.
TheStreet Ratings rates Calpine as a
sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally high debt management risk.
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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