Pepco Holdings Inc (POM): 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

Pepco Holdings ( POM) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.5%. By the end of trading, Pepco Holdings rose $0.29 (1.3%) to $22.29 on average volume. Throughout the day, 1,809,181 shares of Pepco Holdings exchanged hands as compared to its average daily volume of 2,194,700 shares. The stock ranged in a price between $21.98-$22.31 after having opened the day at $22.05 as compared to the previous trading day's close of $22.00. Other companies within the Utilities sector that increased today were: Empresa Distribuidora y Comercializadora No ( EDN), up 18.0%, U.S. Geothermal ( HTM), up 14.3%, Centrais Eletricas Brasileiras ( EBR.B), up 7.2% and Beacon Power ( BCON), up 7.1%.
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Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. Pepco Holdings has a market cap of $5.5 billion and is part of the utilities industry. Shares are up 12.4% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Pepco Holdings a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Pepco Holdings as a buy. Among the primary strengths of the company is its solid stock performance, considering both the consistency and magnitude of the price movement over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Huaneng Power International ( HNP), down 9.0%, GreenHunter Energy ( GRH), down 5.1%, China Hydroelectric Corporation ( CHC), down 4.4% and Cadiz ( CDZI), down 4.1%.

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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