Dynegy Inc (DYN): 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

Dynegy ( DYN) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.8%. By the end of trading, Dynegy fell $0.27 (-1.1%) to $23.50 on light volume. Throughout the day, 433,253 shares of Dynegy exchanged hands as compared to its average daily volume of 1,623,500 shares. The stock ranged in price between $23.24-$23.84 after having opened the day at $23.70 as compared to the previous trading day's close of $23.77. Other companies within the Utilities sector that declined today were: Western Gas Equity Partners ( WGP), down 2.3%, Southcross Energy Partners ( SXE), down 2.2%, Calpine ( CPN), down 2.1% and Niska Gas Storage Partners ( NKA), down 1.9%.
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Dynegy Inc., through its subsidiaries, engages in the production and sale of electric energy, capacity, and ancillary services in the United States. Dynegy has a market cap of $72.5 million and is part of the utilities industry. Shares are unchanged year to date as of the close of trading on Monday. Currently there are no analysts that rate Dynegy a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Dynegy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally weak debt management.

On the positive front, U.S. Geothermal ( HTM), down 9.5%, Empresa Distribuidora y Comercializadora No ( EDN), down 9.5%, Ocean Power Technologies ( OPTT), down 2.7% and Pure Cycle Corporation ( PCYO), down 2.5% , were all gainers within the utilities sector with Duke Energy Corporation ( DUK) 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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