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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