3 Stocks Pulling The Utilities Sector Downward

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 86 points (-0.5%) at 16,084 as of Friday, April 11, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,014 issues advancing vs. 1,941 declining with 158 unchanged.

The Utilities sector currently sits down 0.2% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include Huaneng Power International ( HNP), down 1.3%, and PPL ( PPL), down 1.0%. A company within the sector that increased today was Korea Electric Power ( KEP), up 2.2%.

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

3. Companhia De Saneamento Basico Do Estado De ( SBS) is one of the companies pushing the Utilities sector lower today. As of noon trading, Companhia De Saneamento Basico Do Estado De is down $0.42 (-4.4%) to $9.03 on heavy volume. Thus far, 2.8 million shares of Companhia De Saneamento Basico Do Estado De exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $8.83-$9.17 after having opened the day at $9.06 as compared to the previous trading day's close of $9.45.

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 $6.4 billion and is part of the utilities industry. Shares are down 16.7% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate Companhia De Saneamento Basico Do Estado De a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Companhia De Saneamento Basico Do Estado De as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing 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.

2. As of noon trading, AES Corporation ( AES) is down $0.27 (-1.9%) to $14.16 on average volume. Thus far, 2.4 million shares of AES Corporation exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $14.13-$14.47 after having opened the day at $14.38 as compared to the previous trading day's close of $14.43.

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. AES Corporation has a market cap of $10.4 billion and is part of the utilities industry. Shares are down 0.6% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts that rate AES Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates AES Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full AES Corporation 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, FirstEnergy ( FE) is down $0.27 (-0.8%) to $33.22 on light volume. Thus far, 1.2 million shares of FirstEnergy exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $33.16-$33.75 after having opened the day at $33.49 as compared to the previous trading day's close of $33.49.

FirstEnergy Corp., a diversified energy company, generates, transmits, and distributes electricity in the United States. The company operates through Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. FirstEnergy has a market cap of $14.2 billion and is part of the utilities industry. Shares are up 1.6% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate FirstEnergy a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates FirstEnergy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity. Get the full FirstEnergy 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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