PPL Corp (PPL): Today's Featured Utilities Winner

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 higher today making it today's featured utilities winner. The sector as a whole was unchanged today. By the end of trading, PPL rose $0.87 (2.6%) to $34.21 on heavy volume. Throughout the day, 7,275,309 shares of PPL exchanged hands as compared to its average daily volume of 4,628,400 shares. The stock ranged in a price between $33.30-$34.38 after having opened the day at $33.39 as compared to the previous trading day's close of $33.34. Other companies within the Utilities sector that increased today were: Consolidated Water ( CWCO), up 5.4%, U S Geothermal ( HTM), up 3.5%, GreenHunter Resources ( GRH), up 3.2% and Exelon ( EXC), up 2.7%.

PPL Corporation, an energy and utility holding company, generates, transmits, distributes, and sells electricity to wholesale and retail customers in the Pennsylvania, Kentucky, Virginia, Tennessee, and the United Kingdom. The company operates in four segments: Kentucky Regulated, U.K. PPL has a market cap of $21.1 billion and is part of the utilities industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate PPL a buy, no analysts rate it a sell, and 7 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.

On the negative front, Cadiz ( CDZI), down 4.2%, American DG Energy ( ADGE), down 4.1%, Pure Cycle ( PCYO), down 2.7% and Transportadora de Gas del Sur ( TGS), down 1.9% , were all laggards within the utilities sector with Public Service Enterprise Group ( PEG) being today's utilities sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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