3 Stocks Driving The Utilities Sector Higher

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 94 points (0.6%) at 16,903 as of Wednesday, June 18, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,336 issues advancing vs. 1,652 declining with 168 unchanged.

The Utilities sector as a whole closed the day up 1.4% versus the S&P 500, which was up 0.7%. Top gainers within the Utilities sector included RGC Resources ( RGCO), up 2.1%, GreenHunter Resources ( GRH), up 6.2%, Pure Cycle ( PCYO), up 4.3%, Transportadora de Gas del Sur ( TGS), up 3.9% and Centrais Eletricas Brasileiras ( EBR.B), up 4.0%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Transportadora de Gas del Sur ( TGS) is one of the companies that pushed the Utilities sector higher today. Transportadora de Gas del Sur was up $0.10 (3.9%) to $2.80 on heavy volume. Throughout the day, 738,928 shares of Transportadora de Gas del Sur exchanged hands as compared to its average daily volume of 304,900 shares. The stock ranged in a price between $2.55-$2.84 after having opened the day at $2.72 as compared to the previous trading day's close of $2.70.

Transportadora de Gas del Sur S.A. operates as a gas transportation company in Latin America. Transportadora de Gas del Sur has a market cap of $427.4 million and is part of the utilities industry. Shares are up 24.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Transportadora de Gas del Sur a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Transportadora de Gas del Sur as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on TGS go as follows:

  • Compared to its closing price of one year ago, TGS's share price has jumped by 66.66%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has slightly increased to $61.94 million or 9.98% when compared to the same quarter last year. Despite an increase in cash flow, TRANSPORTADORA DE GAS SUR's average is still marginally south of the industry average growth rate of 15.81%.
  • The revenue fell significantly faster than the industry average of 35.8%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for TRANSPORTADORA DE GAS SUR is currently lower than what is desirable, coming in at 27.96%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.26% is significantly below that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Gas Utilities industry. The net income has significantly decreased by 143.9% when compared to the same quarter one year ago, falling from $22.29 million to -$9.79 million.

You can view the full analysis from the report here: Transportadora de Gas del Sur Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Pure Cycle ( PCYO) was up $0.26 (4.3%) to $6.29 on average volume. Throughout the day, 99,042 shares of Pure Cycle exchanged hands as compared to its average daily volume of 68,300 shares. The stock ranged in a price between $5.98-$6.67 after having opened the day at $6.00 as compared to the previous trading day's close of $6.03.

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area. Pure Cycle has a market cap of $144.2 million and is part of the utilities industry. Shares are down 4.7% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Pure Cycle a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Pure Cycle as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on PCYO go as follows:

  • PCYO's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 69.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PCYO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, PCYO has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Water Utilities industry and the overall market, PURE CYCLE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.44 million or 193.26% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Pure Cycle Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

GreenHunter Resources ( GRH) was another company that pushed the Utilities sector higher today. GreenHunter Resources was up $0.10 (6.2%) to $1.70 on heavy volume. Throughout the day, 351,533 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 123,600 shares. The stock ranged in a price between $1.56-$1.72 after having opened the day at $1.61 as compared to the previous trading day's close of $1.60.

GreenHunter Resources has a market cap of $54.7 million and is part of the utilities industry. Shares are up 37.9% year-to-date as of the close of trading on Tuesday.

Highlights from TheStreet Ratings analysis on GRH go as follows:

You can view the full analysis from the report here: GreenHunter Resources Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

More from Markets

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Stocks Slide Amid a Rise in Bond Yields, Strong Earnings

Stocks Slide Amid a Rise in Bond Yields, Strong Earnings

Jim Cramer on Earnings: All Stories Aren't Equal

Jim Cramer on Earnings: All Stories Aren't Equal

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq

Dow Futures Turn Positive After Boeing Earnings Blowout; Twitter Boosts Nasdaq