Entergy Corp (ETR): Today's Featured Utilities Laggard

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

Entergy ( ETR) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Entergy fell $1.50 (-2.1%) to $68.62 on heavy volume. Throughout the day, 2,002,020 shares of Entergy exchanged hands as compared to its average daily volume of 1,283,300 shares. The stock ranged in price between $68.24-$70.19 after having opened the day at $70.14 as compared to the previous trading day's close of $70.12. Other companies within the Utilities sector that declined today were: GreenHunter Energy ( GRH), down 6.5%, Korea Electric Power ( KEP), down 3.0%, AmeriGas Partners ( APU), down 1.8% and SJW Corporation ( SJW), down 1.7%.
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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.

On the positive front, EQT ( EQT), down 7.8%, Ocean Power Technologies ( OPTT), down 5.3%, PVR Partners ( PVR), down 5.0% and American DG Energy ( ADGE), down 3.0% , were all gainers within the utilities sector with SCANA ( SCG) 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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