CPL, KEP, ETR And AES, 4 Utilities Stocks Pushing The 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 45 points (-0.3%) at 14,466 as of Thursday, March 21, 2013, 12:44 PM ET. The NYSE advances/declines ratio sits at 1,235 issues advancing vs. 1,661 declining with 139 unchanged.

The Utilities sector currently sits down 0.2% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the sector include Centrais Eletricas Brasileiras ( EBR), down 3.1%, and Centrais Eletricas Brasileiras ( EBR.B), down 2.6%. A company within the sector that increased today was National Electricity Company of Chile ( EOC), up 1.5%.

TheStreet Ratings group would like to highlight 4 stocks pushing the sector lower today:

4. CPFL Energy ( CPL) is one of the companies pushing the Utilities sector lower today. As of noon trading, CPFL Energy is down $0.23 (-1.1%) to $20.27 on average volume Thus far, 175,852 shares of CPFL Energy exchanged hands as compared to its average daily volume of 440,100 shares. The stock has ranged in price between $20.18-$20.46 after having opened the day at $20.45 as compared to the previous trading day's close of $20.50.

CPFL Energia S.A., through its subsidiaries, engages in the generation, distribution, and sale of electric energy in Brazil. It generates electricity through hydroelectric, thermoelectric, sugarcane biomass, and wind power plants. CPFL Energy has a market cap of $10.1 billion and is part of the utilities industry. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate CPFL Energy a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates CPFL Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow. Get the full CPFL Energy Ratings Report now.

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3. As of noon trading, Korea Electric Power ( KEP) is down $0.40 (-2.9%) to $13.22 on light volume Thus far, 178,477 shares of Korea Electric Power exchanged hands as compared to its average daily volume of 730,700 shares. The stock has ranged in price between $13.05-$13.31 after having opened the day at $13.31 as compared to the previous trading day's close of $13.62.

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in Korea. The company generates power from nuclear, coal, oil, liquefied natural gas, hydro, wind, and solar sources. Korea Electric Power has a market cap of $18.1 billion and is part of the utilities industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Korea Electric Power a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Korea Electric Power as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself. Get the full Korea Electric Power Ratings Report now.

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2. As of noon trading, Entergy ( ETR) is down $0.64 (-1.0%) to $63.33 on light volume Thus far, 343,105 shares of Entergy exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $63.27-$63.93 after having opened the day at $63.70 as compared to the previous trading day's close of $63.97.

Entergy Corporation, together with its subsidiaries, engages in the electric power production and retail electric distribution operations in the United States. The company generates electricity through various sources, such as gas/oil, nuclear, coal, and hydro power. Entergy has a market cap of $11.5 billion and is part of the utilities industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 0.4% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Entergy a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Entergy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow. Get the full Entergy Ratings Report now.

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1. As of noon trading, AES ( AES) is down $0.18 (-1.4%) to $12.50 on light volume Thus far, 1.8 million shares of AES exchanged hands as compared to its average daily volume of 5.9 million shares. The stock has ranged in price between $12.46-$12.69 after having opened the day at $12.63 as compared to the previous trading day's close of $12.68.

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 $9.2 billion and is part of the utilities industry. Shares are up 16.4% year to date as of the close of trading on Wednesday. Currently there are 6 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. Get the full AES 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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