TRP, SRE And D, Pushing Utilities Sector Downward

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 79 points (0.5%) at 15,467 as of Wednesday, May 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,746 issues advancing vs. 1,183 declining with 133 unchanged.

The Utilities sector currently is unchanged today versus the S&P 500, which is up 0.5%. Top gainers within the sector include Centrais Eletricas Brasileiras ( EBR), up 10.7%, Centrais Eletricas Brasileiras ( EBR.B), up 8.0%, Energy Company of Parana ( ELP), up 2.1% and CPFL Energy ( CPL), up 1.9%.

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

3. TransCanada ( TRP) is one of the companies pushing the Utilities sector lower today. As of noon trading, TransCanada is down $0.28 (-0.6%) to $49.17 on light volume Thus far, 190,768 shares of TransCanada exchanged hands as compared to its average daily volume of 529,100 shares. The stock has ranged in price between $48.99-$49.65 after having opened the day at $49.29 as compared to the previous trading day's close of $49.45.

TransCanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. TransCanada has a market cap of $34.3 billion and is part of the utilities industry. The company has a P/E ratio of 25.0, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates TransCanada as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full TransCanada Ratings Report now.

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2. As of noon trading, Sempra Energy ( SRE) is down $0.83 (-1.0%) to $82.99 on average volume Thus far, 786,049 shares of Sempra Energy exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $82.42-$83.68 after having opened the day at $83.68 as compared to the previous trading day's close of $83.82.

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 $20.6 billion and is part of the utilities industry. The company has a P/E ratio of 26.2, above the S&P 500 P/E ratio of 17.7. Shares are up 18.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Sempra Energy 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 Sempra Energy Ratings Report now.

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1. As of noon trading, Dominion Resources ( D) is down $0.43 (-0.7%) to $60.26 on average volume Thus far, 1.4 million shares of Dominion Resources exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $59.88-$60.62 after having opened the day at $60.56 as compared to the previous trading day's close of $60.69.

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 $35.1 billion and is part of the utilities industry. The company has a P/E ratio of 110.5, above the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Dominion Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Dominion Resources Ratings Report now.

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If you are interested in one of these 5 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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