3 Utilities Stocks Dragging The Sector Down

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All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 83 points (-0.5%) at 16,448 as of Tuesday, May 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,223 issues advancing vs. 1,760 declining with 164 unchanged.

The Utilities sector currently is unchanged today versus the S&P 500, which is down 0.4%. Top gainers within the sector include CPFL Energy ( CPL), up 3.7%, Energy Company of Parana ( ELP), up 2.7%, Western Gas Equity Partners ( WGP), up 1.2% and Korea Electric Power ( KEP), up 0.8%.

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

3. FirstEnergy ( FE) is one of the companies pushing the Utilities sector lower today. As of noon trading, FirstEnergy is down $0.70 (-2.1%) to $32.72 on heavy volume. Thus far, 3.7 million shares of FirstEnergy exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $32.65-$33.55 after having opened the day at $33.11 as compared to the previous trading day's close of $33.42.

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 $14.0 billion and is part of the utilities industry. The company has a P/E ratio of 37.0, above the S&P 500 P/E ratio of 17.7. Shares are up 1.3% year-to-date as of the close of trading on Monday. Currently there are 2 analysts that rate FirstEnergy a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates FirstEnergy as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth 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.

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