3 Utilities Stocks Dragging The Sector Down

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 34 points (0.2%) at 16,464 as of Wednesday, Aug. 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,014 issues advancing vs. 970 declining with 140 unchanged.

The Utilities sector currently sits down 0.1% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Calpine ( CPN), down 2.4%, ONEOK ( OKE), down 1.9%, Edison International ( EIX), down 1.8%, Xcel Energy ( XEL), down 1.5% and Duke Energy Corporation ( DUK), down 1.4%.

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

3. Entergy ( ETR) is one of the companies pushing the Utilities sector lower today. As of noon trading, Entergy is down $1.02 (-1.4%) to $71.10 on average volume. Thus far, 1.1 million shares of Entergy exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $70.89-$71.92 after having opened the day at $71.91 as compared to the previous trading day's close of $72.12.

Entergy Corporation, together with its subsidiaries, is engaged in the electric power production and retail electric distribution operations in the United States. It generates electricity through gas/oil, nuclear, coal, and hydro power. Entergy has a market cap of $13.0 billion and is part of the utilities industry. Shares are up 14.5% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Entergy a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Entergy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, increase in stock price during the past year and growth in earnings per share. 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 Entergy 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, American Electric Power ( AEP) is down $0.97 (-1.9%) to $49.37 on heavy volume. Thus far, 2.6 million shares of American Electric Power exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $49.16-$50.33 after having opened the day at $50.25 as compared to the previous trading day's close of $50.34.

American Electric Power Company, Inc., a public utility holding company, is engaged in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. American Electric Power has a market cap of $25.1 billion and is part of the utilities industry. Shares are up 10.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate American Electric Power a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates American Electric Power as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full American Electric Power 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, PPL ( PPL) is down $0.55 (-1.7%) to $31.99 on heavy volume. Thus far, 3.4 million shares of PPL exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $31.92-$32.48 after having opened the day at $32.40 as compared to the previous trading day's close of $32.54.

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 $22.0 billion and is part of the utilities industry. Shares are up 9.8% year-to-date as of the close of trading on Tuesday. Currently there are 5 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. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full PPL 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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