Dominion Resources Inc (D): 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.

Dominion Resources ( D) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Dominion Resources fell 59 cents (-1%) to $55.87 on average volume. Throughout the day, two million shares of Dominion Resources exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $55.85-$56.61 after having opened the day at $56.50 as compared to the previous trading day's close of $56.46. Other companies within the Utilities sector that declined today were: Empresa Distribuidora y Comercializadora No ( EDN), down 4.2%, Huaneng Power International ( HNP), down 2.7%, China Hydroelectric Corporation ( CHC), down 2.5%, and GreenHunter Energy ( GRH), down 2%.
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Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. It operates in three segments: DVP, Dominion Generation, and Dominion Energy. Dominion Resources has a market cap of $32.57 billion and is part of the utilities industry. The company has a P/E ratio of 99.1, above the S&P 500 P/E ratio of 17.7. Shares are up 9.1% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Dominion Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations 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, Centrais Eletricas Brasileiras ( EBR), up 8.9%, Energy Company of Minas Gerais ( CIG), up 5.8%, Centrais Eletricas Brasileiras ( EBR.B), up 5.8%, and U.S. Geothermal ( HTM), up 5.6%, were all gainers within the utilities sector with EQT ( EQT) 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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