5 Stocks Dragging The 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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Utilities sector currently is unchanged today versus the S&P 500, which is down 0.09. On the negative front, top decliners within the sector include Centrais Eletricas Brasileiras ( EBR), down 4.89, and Centrais Eletricas Brasileiras ( EBR.B), down 2.45. Top gainers within the sector include Sempra Energy ( SRE), up 1.6%, Entergy ( ETR), up 1.2% and PG&E ( PCG), up 0.9%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Energy Company of Parana ( ELP) is one of the companies pushing the Utilities sector lower today. As of noon trading, Energy Company of Parana is down $0.83 (-5.0%) to $15.85 on heavy volume Thus far, 269,920 shares of Energy Company of Parana exchanged hands as compared to its average daily volume of 321,100 shares. The stock has ranged in price between $15.82-$16.56 after having opened the day at $16.46 as compared to the previous trading day's close of $16.68.

Companhia Paranaense de Energia - COPEL engages in the generation, transmission, distribution, and sale of electricity primarily to industrial, residential, commercial, and rural customers primarily in the State of Parana, Brazil. Energy Company of Parana has a market cap of $4.6 billion and is part of the utilities industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Energy Company of Parana a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Energy Company of Parana as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Energy Company of Parana Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Korea Electric Power ( KEP) is down $0.33 (-2.7%) to $11.80 on average volume Thus far, 172,821 shares of Korea Electric Power exchanged hands as compared to its average daily volume of 448,700 shares. The stock has ranged in price between $11.75-$11.86 after having opened the day at $11.85 as compared to the previous trading day's close of $12.13.

Korea Electric Power Corporation, an integrated electric utility company, engages in the generation, transmission, and distribution of electricity in Korea. Korea Electric Power has a market cap of $15.3 billion and is part of the utilities industry. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are down 13.2% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Korea Electric Power a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Korea Electric Power as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins. Get the full Korea Electric Power Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, CPFL Energy ( CPL) is down $0.42 (-1.9%) to $21.42 on light volume Thus far, 110,882 shares of CPFL Energy exchanged hands as compared to its average daily volume of 357,000 shares. The stock has ranged in price between $21.37-$21.79 after having opened the day at $21.53 as compared to the previous trading day's close of $21.84.

CPFL Energia S.A., through its subsidiaries, distributes, generates, and commercializes electricity in Brazil. The company operates in five segments: Distribution, Conventional Generation Sources, Renewable Generation Sources, Commercialization, and Services. CPFL Energy has a market cap of $10.5 billion and is part of the utilities industry. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Thursday. Currently there are no analysts that rate CPFL Energy a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates CPFL Energy as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk. Get the full CPFL Energy Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Companhia De Saneamento Basico Do Estado De ( SBS) is down $0.50 (-3.8%) to $12.57 on average volume Thus far, 831,194 shares of Companhia De Saneamento Basico Do Estado De exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $12.51-$13.00 after having opened the day at $12.94 as compared to the previous trading day's close of $13.07.

Companhia de Saneamento Basico do Estado de S o Paulo-SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and municipal customers in the State of S o Paulo. Companhia De Saneamento Basico Do Estado De has a market cap of $9.0 billion and is part of the utilities industry. The company has a P/E ratio of 9.6, below the S&P 500 P/E ratio of 17.7. Shares are down 5.5% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Companhia De Saneamento Basico Do Estado De a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Companhia De Saneamento Basico Do Estado De as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Companhia De Saneamento Basico Do Estado De Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, TransCanada ( TRP) is down $0.32 (-0.7%) to $45.97 on heavy volume Thus far, 434,229 shares of TransCanada exchanged hands as compared to its average daily volume of 514,900 shares. The stock has ranged in price between $45.54-$46.19 after having opened the day at $46.19 as compared to the previous trading day's close of $46.29.

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 $33.1 billion and is part of the utilities industry. The company has a P/E ratio of 24.2, above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate TransCanada a buy, no analysts rate it a sell, and 4 rate it a hold.

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 growth in earnings per share. 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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