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 78 points (0.5%) at 16,438 as of Thursday, March 6, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,775 issues advancing vs. 1,148 declining with 152 unchanged.

The Utilities sector currently sits down 0.1% versus the S&P 500, which is up 0.4%. A company within the sector that fell today was PG&E ( PCG), up 0.7%. Top gainers within the sector include Empresa Nacional de Electricidad ( EOC), up 1.3%, Huaneng Power International Inc. ADR repr C ( HNP), up 0.8% and Korea Electric Power ( KEP), up 0.7%.

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

3. Entergy ( ETR) is one of the companies pushing the Utilities sector lower today. As of noon trading, Entergy is down $0.58 (-0.9%) to $62.45 on light volume. Thus far, 425,498 shares of Entergy exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $62.43-$63.36 after having opened the day at $63.22 as compared to the previous trading day's close of $63.03.

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 $11.3 billion and is part of the utilities industry. Shares are up 0.3% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Entergy a buy, 3 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Entergy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. 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.

2. As of noon trading, PPL ( PPL) is down $0.21 (-0.7%) to $31.42 on light volume. Thus far, 1.2 million shares of PPL exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $31.38-$31.69 after having opened the day at $31.64 as compared to the previous trading day's close of $31.63.

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 $20.4 billion and is part of the utilities industry. Shares are up 7.4% year-to-date as of the close of trading on Wednesday. Currently there are 5 analysts that rate PPL a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates PPL as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full PPL 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, Exelon ( EXC) is down $0.35 (-1.1%) to $29.93 on average volume. Thus far, 2.9 million shares of Exelon exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $29.88-$30.39 after having opened the day at $30.20 as compared to the previous trading day's close of $30.28.

Exelon Corporation, a utility services holding company, is engaged in the energy generation business in the United States. It operates through nine segments: Mid-Atlantic, Midwest, New England, New York, ERCOT, Other Regions, ComEd, PECO, and BGE. Exelon has a market cap of $26.1 billion and is part of the utilities industry. Shares are up 11.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts that rate Exelon a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Exelon as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Exelon 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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