SRE, ETR And D, 3 Utilities Stocks Pushing The Sector Lower

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 72 points (0.5%) at 14,749 as of Thursday, April 25, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,049 issues advancing vs. 833 declining with 158 unchanged.

The Utilities sector currently sits up 0.5% versus the S&P 500, which is up 0.7%. A company within the sector that fell today was Korea Electric Power ( KEP), up 2.93.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Sempra Energy ( SRE) is one of the companies pushing the Utilities sector lower today. As of noon trading, Sempra Energy is down $0.35 (-0.4%) to $81.21 on light volume Thus far, 353,545 shares of Sempra Energy exchanged hands as compared to its average daily volume of 955,000 shares. The stock has ranged in price between $81.00-$81.92 after having opened the day at $81.86 as compared to the previous trading day's close of $81.56.

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 $19.9 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 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, Entergy ( ETR) is down $0.84 (-1.2%) to $69.28 on average volume Thus far, 764,256 shares of Entergy exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $68.85-$70.19 after having opened the day at $70.14 as compared to the previous trading day's close of $70.12.

Entergy Corporation, together with its subsidiaries, engages in the electric power production and retail electric distribution operations in the United States. The company generates electricity through various sources, such as gas/oil, nuclear, coal, and hydro power. Entergy has a market cap of $12.4 billion and is part of the utilities industry. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 10.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Entergy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and disappointing return on equity. Get the full Entergy Ratings Report now.

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1. As of noon trading, Dominion Resources ( D) is down $0.61 (-1.0%) to $60.51 on average volume Thus far, 1.5 million shares of Dominion Resources exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $60.31-$61.10 after having opened the day at $61.10 as compared to the previous trading day's close of $61.12.

Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. The company operates through three segments: Dominion Virginia Power (DVP), Dominion Generation, and Dominion Energy. Dominion Resources has a market cap of $35.2 billion and is part of the utilities industry. The company has a P/E ratio of 107.0, above the S&P 500 P/E ratio of 17.7. Shares are up 18.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Dominion Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Dominion Resources Ratings Report now.

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If you are interested in one of these 4 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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