Calpine Corp (CPN): 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.

Calpine ( CPN) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Calpine fell $0.22 (-1.1%) to $19.02 on light volume. Throughout the day, 1,998,005 shares of Calpine exchanged hands as compared to its average daily volume of 3,076,400 shares. The stock ranged in price between $18.95-$19.22 after having opened the day at $19.12 as compared to the previous trading day's close of $19.24. Other companies within the Utilities sector that declined today were: Empresa Distribuidora y Comercializadora No ( EDN), down 3.0%, U.S. Geothermal ( HTM), down 2.4%, Pure Cycle Corporation ( PCYO), down 1.9% and Enersis ( ENI), down 1.6%.

Calpine Corporation, a wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. Calpine has a market cap of $8.5 billion and is part of the utilities industry. Shares are up 6.1% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Calpine a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Calpine as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

On the positive front, China Hydroelectric Corporation ( CHC), up 21.1%, Ocean Power Technologies ( OPTT), up 12.6%, American DG Energy ( ADGE), up 3.8% and GreenHunter Resources ( GRH), up 2.7%.

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).

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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