NRG Energy Inc (NRG): Today's Featured Utilities Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NRG Energy ( NRG) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.3%. By the end of trading, NRG Energy fell $0.42 (-1.5%) to $27.25 on light volume. Throughout the day, 2,557,414 shares of NRG Energy exchanged hands as compared to its average daily volume of 3,626,300 shares. The stock ranged in price between $27.21-$27.65 after having opened the day at $27.59 as compared to the previous trading day's close of $27.67. Other companies within the Utilities sector that declined today were: American DG Energy ( ADGE), down 7.1%, Just Energy Group ( JE), down 4.0%, American Midstream Partners ( AMID), down 3.5% and Centrais Eletricas Brasileiras ( EBR.B), down 3.4%.

NRG Energy, Inc., together with its subsidiaries, operates as an integrated wholesale power generation and retail electricity company. The company engages in the ownership, development, construction, expansion, modification, refurbishment, and operation of power generation facilities. NRG Energy has a market cap of $8.9 billion and is part of the utilities industry. Shares are up 19.7% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate NRG Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates NRG Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels and notable return on equity. 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, GreenHunter Resources ( GRH), up 3.9%, Beacon Power ( BCON), up 3.8%, U.S. Geothermal ( HTM), up 3.1% and Huaneng Power International ( HNP), up 3.0% , were all gainers within the utilities sector with PPL ( PPL) 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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