3 Stocks Dragging In The Utilities Sector

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 15,533 as of Tuesday, July 30, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,505 issues advancing vs. 1,392 declining with 116 unchanged.

The Utilities sector currently sits down 0.1% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include TransAlta Corporation ( TAC), down 4.9%, Centrais Eletricas Brasileiras ( EBR), down 3.7%, Centrais Eletricas Brasileiras ( EBR.B), down 2.8%, Empresa Nacional de ElectricidadSA ( EOC), down 1.8% and Enersis ( ENI), down 1.5%. Top gainers within the sector include NextEra Energy ( NEE), up 1.4%, Edison International ( EIX), up 0.9%, FirstEnergy ( FE), up 0.7% and Korea Electric Power ( KEP), up 0.6%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. CPFL Energy ( CPL) is one of the companies pushing the Utilities sector lower today. As of noon trading, CPFL Energy is down $0.39 (-2.0%) to $18.71 on light volume. Thus far, 80,411 shares of CPFL Energy exchanged hands as compared to its average daily volume of 395,000 shares. The stock has ranged in price between $18.67-$19.07 after having opened the day at $19.03 as compared to the previous trading day's close of $19.10.

CPFL Energia S.A., through its subsidiaries, distributes, generates, and commercializes electricity in Brazil. The company operates in five segments: Distribution, Conventional Generation Sources, Renewable Generation Sources, Commercialization, and Services. CPFL Energy has a market cap of $9.1 billion and is part of the utilities industry. Shares are down 10.0% year to date as of the close of trading on Monday. Currently there are no analysts that rate CPFL Energy a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates CPFL Energy as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk. Get the full CPFL Energy Ratings Report now.

STOCKS TO BUY: 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, Companhia De Saneamento Basico Do Estado De ( SBS) is down $0.17 (-1.6%) to $10.22 on light volume. Thus far, 256,882 shares of Companhia De Saneamento Basico Do Estado De exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $10.20-$10.43 after having opened the day at $10.43 as compared to the previous trading day's close of $10.39.

Companhia de Saneamento Basico do Estado de S o Paulo-SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and municipal customers in the State of S o Paulo. Companhia De Saneamento Basico Do Estado De has a market cap of $7.2 billion and is part of the utilities industry. Shares are down 23.9% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Companhia De Saneamento Basico Do Estado De a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Companhia De Saneamento Basico Do Estado De as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Companhia De Saneamento Basico Do Estado De Ratings Report now.

STOCKS TO BUY: 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, Entergy ( ETR) is down $0.72 (-1.0%) to $69.82 on heavy volume. Thus far, 1.4 million shares of Entergy exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $69.10-$71.77 after having opened the day at $70.76 as compared to the previous trading day's close of $70.53.

Entergy Corporation, together with its subsidiaries, engages in the electric power production and retail electric distribution operations in the United States. The company generates electricity through various sources, such as gas/oil, nuclear, coal, and hydro power. Entergy has a market cap of $12.5 billion and is part of the utilities industry. Shares are up 10.0% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Entergy a buy, 3 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Entergy as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Entergy Ratings Report now.

STOCKS TO BUY: 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).

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