4 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 14,544 as of Monday, April 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,423 issues advancing vs. 1,490 declining with 125 unchanged.

The Utilities sector currently sits down 0.31 versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Energy Company of Parana ( ELP), down 2.91, and PG&E ( PCG), down 1.00. A company within the sector that increased today was Centrais Eletricas Brasileiras ( EBR.B), up 2.26.

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 $0.26 (-1.2%) to $20.68 on light volume Thus far, 78,467 shares of CPFL Energy exchanged hands as compared to its average daily volume of 412,300 shares. The stock has ranged in price between $20.57-$20.88 after having opened the day at $20.87 as compared to the previous trading day's close of $20.94.

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 $10.2 billion and is part of the utilities industry. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates CPFL Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk. Get the full CPFL Energy Ratings Report now.

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3. As of noon trading, Enersis ( ENI) is down $0.18 (-0.9%) to $18.92 on light volume Thus far, 213,367 shares of Enersis exchanged hands as compared to its average daily volume of 912,100 shares. The stock has ranged in price between $18.91-$19.20 after having opened the day at $19.20 as compared to the previous trading day's close of $19.10.

Enersis S.A., an electric utility company, through its subsidiaries and jointly-controlled entities, engages in the electricity generation, transmission, and distribution businesses in Chile, Brazil, Colombia, Peru, and Argentina. Enersis has a market cap of $12.4 billion and is part of the utilities industry. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Friday.

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, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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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2. As of noon trading, Companhia De Saneamento Basico Do Estado De ( SBS) is down $2.77 (-5.9%) to $43.83 on heavy volume Thus far, 512,202 shares of Companhia De Saneamento Basico Do Estado De exchanged hands as compared to its average daily volume of 523,600 shares. The stock has ranged in price between $43.61-$44.09 after having opened the day at $43.61 as compared to the previous trading day's close of $46.60.

Companhia de Saneamento Basico do Estado de S o Paulo SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and governmental customers in the State of S o Paulo. Companhia De Saneamento Basico Do Estado De has a market cap of $10.5 billion and is part of the utilities industry. The company has a P/E ratio of 20.1, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates Companhia De Saneamento Basico Do Estado De as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Companhia De Saneamento Basico Do Estado De Ratings Report now.

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1. As of noon trading, Northeast Utilities ( NU) is down $0.50 (-1.1%) to $44.44 on average volume Thus far, 818,437 shares of Northeast Utilities exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $44.23-$44.94 after having opened the day at $44.92 as compared to the previous trading day's close of $44.94.

Northeast Utilities, a public utility company, through its subsidiaries, engages in the energy delivery business. It operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Other. Northeast Utilities has a market cap of $13.9 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 15.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Northeast Utilities as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Northeast Utilities 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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