5 Stocks Pulling The 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 52 points (-0.4%) at 14,567 as of Thursday, April 18, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,288 issues advancing vs. 1,600 declining with 135 unchanged.

The Utilities sector currently sits up 0.1% versus the S&P 500, which is down 0.48. On the negative front, top decliners within the sector include Centrais Eletricas Brasileiras ( EBR), down 4.01, and Centrais Eletricas Brasileiras ( EBR.B), down 3.20. Top gainers within the sector include ONEOK ( OKE), up 1.2%, TransCanada ( TRP), up 0.7% and Korea Electric Power ( KEP), up 0.6%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. ITC Holdings ( ITC) is one of the companies pushing the Utilities sector lower today. As of noon trading, ITC Holdings is down $1.13 (-1.2%) to $88.94 on heavy volume Thus far, 257,703 shares of ITC Holdings exchanged hands as compared to its average daily volume of 234,200 shares. The stock has ranged in price between $88.71-$90.56 after having opened the day at $90.00 as compared to the previous trading day's close of $90.07.

ITC Holdings Corp., together with its subsidiaries, engages in the transmission of electricity in the United States. ITC Holdings has a market cap of $4.8 billion and is part of the utilities industry. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates ITC Holdings 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, revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full ITC Holdings Ratings Report now.

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4. As of noon trading, Calpine ( CPN) is down $0.30 (-1.4%) to $20.57 on average volume Thus far, 2.1 million shares of Calpine exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $20.55-$20.97 after having opened the day at $20.90 as compared to the previous trading day's close of $20.87.

Calpine Corporation, a wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. Calpine has a market cap of $9.8 billion and is part of the utilities industry. The company has a P/E ratio of 51.1, above the S&P 500 P/E ratio of 17.7. Shares are up 15.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Calpine as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally high debt management risk. Get the full Calpine Ratings Report now.

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3. As of noon trading, Sempra Energy ( SRE) is down $0.41 (-0.5%) to $80.82 on light volume Thus far, 336,763 shares of Sempra Energy exchanged hands as compared to its average daily volume of 901,500 shares. The stock has ranged in price between $80.78-$81.60 after having opened the day at $81.42 as compared to the previous trading day's close of $81.23.

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 $19.8 billion and is part of the utilities industry. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Wednesday.

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, Edison International ( EIX) is down $0.31 (-0.6%) to $51.30 on light volume Thus far, 650,275 shares of Edison International exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $51.24-$51.77 after having opened the day at $51.65 as compared to the previous trading day's close of $51.61.

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 $16.9 billion and is part of the utilities industry. The company has a P/E ratio of 11.4, below the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Wednesday.

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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Edison International Ratings Report now.

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1. As of noon trading, PG&E ( PCG) is down $0.31 (-0.7%) to $46.70 on average volume Thus far, 1.4 million shares of PG&E exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $46.66-$47.22 after having opened the day at $47.00 as compared to the previous trading day's close of $47.01.

PG&E Corporation, through its subsidiaries, operates as a public utility company in northern and central California. PG&E has a market cap of $20.6 billion and is part of the utilities industry. The company has a P/E ratio of 24.5, above the S&P 500 P/E ratio of 17.7. Shares are up 17.0% year to date as of the close of trading on Wednesday.

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. Get the full PG&E Ratings Report now.

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If you are interested in one of these 5 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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