PPL Corp (PPL): 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.

PPL ( PPL) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.1%. By the end of trading, PPL fell $0.35 (-1.2%) to $29.69 on heavy volume. Throughout the day, 6,257,146 shares of PPL exchanged hands as compared to its average daily volume of 3,964,600 shares. The stock ranged in price between $29.68-$30.07 after having opened the day at $30.01 as compared to the previous trading day's close of $30.04. Other companies within the Utilities sector that declined today were: U.S. Geothermal ( HTM), down 6.1%, Centrais Eletricas Brasileiras ( EBR), down 4.0%, GreenHunter Resources ( GRH), down 3.1% and CorEnergy Infrastructure ( CORR), down 3.0%.

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 $19.0 billion and is part of the utilities industry. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are down 0.2% year to date as of the close of trading on Tuesday. Currently there are 4 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 revenue growth, good cash flow from operations, expanding profit margins, attractive valuation levels and increase in stock price during the past year. 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, American DG Energy ( ADGE), up 3.1%, RGC Resources ( RGCO), up 2.8%, Cadiz ( CDZI), up 2.5% and Ocean Power Technologies ( OPTT), up 2.3%.

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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