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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 34 points (0.2%) at 16,956 as of Friday, June 20, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,547 issues advancing vs. 1,406 declining with 177 unchanged.

The Utilities sector currently sits up 0.2% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Duke Energy Corporation ( DUK), down 1.0%, Exelon ( EXC), down 0.8% and Dominion Resources ( D), down 0.6%. Top gainers within the sector include Huaneng Power International ( HNP), up 1.9%, Companhia De Saneamento Basico Do Estado De ( SBS), up 1.9%, TransCanada ( TRP), up 1.0% and Praxair ( PX), up 0.6%.

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

3. ITC Holdings ( ITC) is one of the companies pushing the Utilities sector lower today. As of noon trading, ITC Holdings is down $0.87 (-2.4%) to $34.93 on heavy volume. Thus far, 2.7 million shares of ITC Holdings exchanged hands as compared to its average daily volume of 743,600 shares. The stock has ranged in price between $34.41-$35.95 after having opened the day at $34.97 as compared to the previous trading day's close of $35.80.

ITC Holdings Corp., together with its subsidiaries, is engaged in the transmission of electricity in the United States. ITC Holdings has a market cap of $5.9 billion and is part of the utilities industry. Shares are up 12.1% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate ITC Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates ITC Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full ITC Holdings 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, Targa Resources ( TRGP) is down $7.27 (-4.8%) to $143.35 on heavy volume. Thus far, 2.1 million shares of Targa Resources exchanged hands as compared to its average daily volume of 269,700 shares. The stock has ranged in price between $134.50-$143.51 after having opened the day at $136.40 as compared to the previous trading day's close of $150.62.

Targa Resources Corp., through its general and limited partner interests in Targa Resources Partners LP, provides midstream natural gas and natural gas liquid (NGL) services in the United States. The company operates in two divisions, Gathering and Processing, and Logistics and Marketing. Targa Resources has a market cap of $5.3 billion and is part of the energy industry. Shares are up 70.8% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts that rate Targa Resources a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Targa Resources as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Targa Resources 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, EQT ( EQT) is down $0.70 (-0.7%) to $107.76 on average volume. Thus far, 886,846 shares of EQT exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $107.74-$109.17 after having opened the day at $109.00 as compared to the previous trading day's close of $108.46.

EQT Corporation, together with its subsidiaries, operates as a natural gas company in the United States. It operates in two segments, EQT Production and EQT Midstream. EQT has a market cap of $16.4 billion and is part of the energy industry. Shares are up 20.8% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts that rate EQT a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates EQT as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full EQT 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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