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 NextEra Energy (
NEE) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.7%. By the end of trading, NextEra Energy rose $1.41 (1.8%) to $78.80 on heavy volume. Throughout the day, 3,253,086 shares of NextEra Energy exchanged hands as compared to its average daily volume of 1,760,500 shares. The stock ranged in a price between $77.53-$78.83 after having opened the day at $78.01 as compared to the previous trading day's close of $77.39. Other companies within the Utilities sector that increased today were:
Beacon Power (
BCON), up 20.0%,
Ocean Power Technologies (
OPTT), up 16.6%,
NRG Energy (
NRG), up 5.7% and
Western Gas Equity Partners (
WGP), up 3.9%.
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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 $32.3 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 11.9% year to date as of the close of trading on Thursday. 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.
On the negative front,
Centrais Eletricas Brasileiras (
EBR), down 5.9%,
Centrais Eletricas Brasileiras (
EBR.B), down 5.4%,
Pure Cycle Corporation (
PCYO), down 5.0% and
Energy Company of Minas Gerais (
CIG), down 3.7%.
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).
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