Utilities Sector's Featured Straggler Of The Day: Edison International (EIX)

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.

Edison International ( EIX) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.7%. By the end of trading, Edison International fell 56 cents (-1.1%) to $50.24 on average volume. Throughout the day, 3.5 million shares of Edison International exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $50.04-$51.06 after having opened the day at $51.05 as compared to the previous trading day's close of $50.80. Other companies within the Utilities sector that declined today were: 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%.
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Edison International, through its subsidiaries, generates and distributes electric power. It also invests in transportation infrastructure and energy assets, including renewable energy in the Netherlands, Australia, Switzerland, and the United Kingdom. Edison International has a market cap of $16.45 billion and is part of the utilities industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 12.4% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Edison International a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Edison International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, increase in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, 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%, were all gainers within the utilities sector with PG&E ( PCG) 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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