3 Utilities Stocks Driving The Sector Higher

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 87 points (-0.6%) at 14,874 as of Thursday, June 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,603 declining with 125 unchanged.

The Utilities sector currently sits down 0.21 versus the S&P 500, which is down 0.38. On the negative front, top decliners within the sector include Centrais Eletricas Brasileiras ( EBR.B), down 4.55, Energy Company of Parana ( ELP), down 2.46 and CPFL Energy ( CPL), down 0.71.

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

3. PG&E ( PCG) is one of the companies pushing the Utilities sector higher today. As of noon trading, PG&E is up $0.34 (0.77) to $44.36 on average volume Thus far, 1.4 million shares of PG&E exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $43.91-$44.79 after having opened the day at $44.03 as compared to the previous trading day's close of $44.02.

PG&E Corporation, through its subsidiaries, operates as a public utility company in northern and central California. PG&E has a market cap of $19.7 billion and is part of the utilities industry. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 9.6% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate PG&E a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates PG&E as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full PG&E Ratings Report now.

3x UPSIDE POTENTIAL: 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, NextEra Energy ( NEE) is up $0.49 (0.64) to $76.48 on average volume Thus far, 1.2 million shares of NextEra Energy exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $75.79-$77.11 after having opened the day at $75.97 as compared to the previous trading day's close of $75.99.

NextEra Energy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. The company is involved in the generation of renewable energy from wind and solar projects. NextEra Energy has a market cap of $32.5 billion and is part of the utilities industry. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate NextEra Energy a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates NextEra Energy as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full NextEra Energy Ratings Report now.

3x UPSIDE POTENTIAL: 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, Southern ( SO) is up $0.24 (0.55) to $43.93 on heavy volume Thus far, 3.3 million shares of Southern exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $43.70-$44.24 after having opened the day at $43.85 as compared to the previous trading day's close of $43.69.

The Southern Company, together with its subsidiaries, operates as a public electric utility company. Southern has a market cap of $38.3 billion and is part of the utilities industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Southern a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Southern as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth 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 Southern Ratings Report now.

3x UPSIDE POTENTIAL: 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 3 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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