Dominion Resources Inc (D): 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

Dominion Resources ( D) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Dominion Resources fell $1.00 (-1.8%) to $55.55 on heavy volume. Throughout the day, 7,311,320 shares of Dominion Resources exchanged hands as compared to its average daily volume of 2,280,600 shares. The stock ranged in price between $55.55-$56.87 after having opened the day at $56.43 as compared to the previous trading day's close of $56.55. Other companies within the Utilities sector that declined today were: Beacon Power ( BCON), down 11.1%, Niska Gas Storage Partners ( NKA), down 4.9%, Empresa Distribuidora y Comercializadora No ( EDN), down 3.6% and Pure Cycle Corporation ( PCYO), down 3.5%.
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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 $33.0 billion and is part of the utilities industry. The company has a P/E ratio of 103.8, above the S&P 500 P/E ratio of 17.7. Shares are up 9.2% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 10 rate it a hold.

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.

On the positive front, Fuelcell Energy ( FCEL), down 10.6%, Energy Company of Parana ( ELP), down 5.3%, Ocean Power Technologies ( OPTT), down 5.1% and Cadiz ( CDZI), down 4.8% , were all gainers within the utilities sector with Entergy ( ETR) 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).

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

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