Dynegy Inc (DYN): 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.

Dynegy ( DYN) 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, Dynegy fell 44 cents (-2.2%) to $19.58 on light volume. Throughout the day, 860,762 shares of Dynegy exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $19.28-$20.07 after having opened the day at $20.07 as compared to the previous trading day's close of $20.02. Other companies within the Utilities sector that declined today were: China Hydroelectric Corporation ( CHC), down 4.5%, Atlantic Power Corporation ( AT), down 3%, Fuelcell Energy ( FCEL), down 2.8%, and Pure Cycle Corporation ( PCYO), down 2.7%.
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Dynegy Inc., through its subsidiaries, engages in the production and sale of electric energy, capacity, and ancillary services in the United States. Dynegy has a market cap of $72.5 million and is part of the utilities industry. Shares are unchanged year to date as of the close of trading on Thursday. Currently there are no analysts that rate Dynegy a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Dynegy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally weak debt management.

On the positive front, Calpine ( CPN), up 2.5%, Southcross Energy Partners ( SXE), up 2.5%, Summit Midstream Partners ( SMLP), up 2.4%, and Otter Tail Corporation ( OTTR), up 1.6%, were all gainers within the utilities sector with Edison International ( EIX) 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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