ENI, SRE, PCG And FE, Pushing Utilities Sector Downward

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 68 points (-0.5%) at 14,443 as of Monday, March 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,111 issues advancing vs. 1,777 declining with 156 unchanged.

The Utilities sector currently sits down 0.2% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include Korea Electric Power ( KEP), down 1.8%, Entergy ( ETR), down 1.3% and National Electricity Company of Chile ( EOC), down 0.7%. A company within the sector that increased today was CPFL Energy ( CPL), up 1.2%.

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

4. Enersis ( ENI) is one of the companies pushing the Utilities sector lower today. As of noon trading, Enersis is down $0.43 (-2.2%) to $19.10 on heavy volume Thus far, 695,986 shares of Enersis exchanged hands as compared to its average daily volume of 633,700 shares. The stock has ranged in price between $19.10-$19.74 after having opened the day at $19.66 as compared to the previous trading day's close of $19.53.

Enersis S.A., an electric utility company, engages in the electricity generation, transmission, and distribution businesses in Chile, Argentina, Brazil, Colombia, and Peru. Enersis has a market cap of $12.4 billion and is part of the utilities industry. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Enersis a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Enersis as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Enersis Ratings Report now.

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3. As of noon trading, Sempra Energy ( SRE) is down $0.90 (-1.1%) to $78.95 on average volume Thus far, 424,698 shares of Sempra Energy exchanged hands as compared to its average daily volume of 879,000 shares. The stock has ranged in price between $78.90-$80.21 after having opened the day at $80.07 as compared to the previous trading day's close of $79.85.

Sempra Energy, through its subsidiaries, operates as an energy services company. The company's San Diego Gas & Electric Company segment is involved in the generation, transmission, and distribution electricity; and sale, distribution, and transportation of natural gas in California. Sempra Energy has a market cap of $19.4 billion and is part of the utilities industry. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Sempra Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Sempra Energy as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Sempra Energy Ratings Report now.

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2. As of noon trading, PG&E ( PCG) is down $0.44 (-1.0%) to $43.36 on average volume Thus far, 1.7 million shares of PG&E exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $43.29-$43.99 after having opened the day at $43.90 as compared to the previous trading day's close of $43.80.

PG&E Corporation, through its subsidiaries, operates as a public utility company in northern and central California. PG&E has a market cap of $18.9 billion and is part of the utilities industry. The company has a P/E ratio of 22.9, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate PG&E a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates PG&E as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk. Get the full PG&E Ratings Report now.

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1. As of noon trading, FirstEnergy ( FE) is down $0.19 (-0.5%) to $40.66 on light volume Thus far, 1.1 million shares of FirstEnergy exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $40.60-$41.21 after having opened the day at $40.97 as compared to the previous trading day's close of $40.85.

FirstEnergy Corp., a diversified energy holding company, engages in the generation, transmission, and distribution of electricity in the United States. The company operates in Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. FirstEnergy has a market cap of $17.5 billion and is part of the utilities industry. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are down 0.7% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate FirstEnergy a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates FirstEnergy as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. 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 FirstEnergy 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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