PG&E Corp (PCG): Utilities' Featured Champion Of The Day

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.

PG&E ( PCG) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.7%. By the end of trading, PG&E rose 55 cents (1.2%) to $45.52 on heavy volume. Throughout the day, 4.6 million shares of PG&E exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $45.03-$45.56 after having opened the day at $45.11 as compared to the previous trading day's close of $44.97. Other companies within the Utilities sector that increased today were: Niska Gas Storage Partners ( NKA), up 14.7%, Transportadora de Gas del Sur ( TGS), up 7.8%, Delta Natural Gas Company ( DGAS), up 5.2%, and Ocean Power Technologies ( OPTT), up 2.3%.
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PG&E Corporation, through its subsidiaries, operates as a public utility company in northern and central California. PG&E has a market cap of $19.66 billion and is part of the utilities industry. The company has a P/E ratio of 23.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate PG&E a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates PG&E as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, 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 negative front, Empresa Distribuidora y Comercializadora No ( EDN), down 9.6%, Pure Cycle Corporation ( PCYO), down 7.6%, Western Gas Equity Partners ( WGP), down 4.5%, and Centrais Eletricas Brasileiras ( EBR), down 3.9%, were all laggards within the utilities sector with Edison International ( EIX) being today's utilities sector laggard.

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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