PPL Corp (PPL): Today's Featured Utilities Winner

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

PPL ( PPL) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 1.3%. By the end of trading, PPL rose $0.42 (1.4%) to $29.50 on average volume. Throughout the day, 4,990,459 shares of PPL exchanged hands as compared to its average daily volume of 5,364,700 shares. The stock ranged in a price between $29.04-$29.53 after having opened the day at $29.16 as compared to the previous trading day's close of $29.08. Other companies within the Utilities sector that increased today were: Ocean Power Technologies ( OPTT), up 10.2%, American DG Energy ( ADGE), up 9.0%, Companhia De Saneamento Basico Do Estado De ( SBS), up 7.4% and U.S. Geothermal ( HTM), up 5.9%.
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PPL Corporation, an energy and utility holding company, engages in the generation, transmission, distribution, and sale of electricity to wholesale and retail customers in the United States and the United Kingdom. The company operates in four segments: Kentucky Regulated, U.K. PPL has a market cap of $17.2 billion and is part of the utilities industry. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate PPL a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates PPL as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, attractive valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Beacon Power ( BCON), down 12.5%, Transportadora de Gas del Sur ( TGS), down 5.9%, RGC Resources ( RGCO), down 2.2% and Korea Electric Power ( KEP), down 1.9%.

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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