ITC Holdings Corp (ITC): 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.

ITC Holdings ( ITC) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 1.1%. By the end of trading, ITC Holdings fell $1.50 (-1.6%) to $94.90 on heavy volume. Throughout the day, 714,155 shares of ITC Holdings exchanged hands as compared to its average daily volume of 328,800 shares. The stock ranged in price between $94.87-$96.70 after having opened the day at $95.96 as compared to the previous trading day's close of $96.40. Other companies within the Utilities sector that declined today were: Transportadora de Gas del Sur ( TGS), down 3.7%, ForceField Energy ( FNRG), down 3.4%, Fuelcell Energy ( FCEL), down 2.8% and Centrais Eletricas Brasileiras ( EBR), down 2.7%.

ITC Holdings Corp., together with its subsidiaries, engages in the transmission of electricity in the United States. ITC Holdings has a market cap of $5.0 billion and is part of the utilities industry. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate ITC Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ITC Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in stock price during the past year and increase in net income. 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, NiSource ( NI), up 4.3%, Empresa Distribuidora y Comercializadora No ( EDN), up 4.2%, SJW Corporation ( SJW), up 4.2% and American DG Energy ( ADGE), up 3.6% , were all gainers within the utilities sector with NextEra Energy ( NEE) 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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