Calpine Corp (CPN): Today's Featured Utilities Winner

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

Calpine ( CPN) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.3%. By the end of trading, Calpine rose $0.47 (2.2%) to $21.82 on average volume. Throughout the day, 3,727,080 shares of Calpine exchanged hands as compared to its average daily volume of 3,017,700 shares. The stock ranged in a price between $21.21-$21.93 after having opened the day at $21.30 as compared to the previous trading day's close of $21.35. Other companies within the Utilities sector that increased today were: American Midstream Partners ( AMID), up 3.8%, Dynegy ( DYN), up 2.0%, Korea Electric Power ( KEP), up 1.9% and TransAlta Corporation ( TAC), up 1.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $9.7 billion and is part of the utilities industry. The company has a P/E ratio of 50.8, above the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Thursday.

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.

On the negative front, Fuelcell Energy ( FCEL), down 3.8%, Centrais Eletricas Brasileiras ( EBR), down 3.4%, SJW Corporation ( SJW), down 2.5% and Ocean Power Technologies ( OPTT), down 2.5%.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.