3 Stocks Pulling The Utilities Sector Downward

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 66 points (-0.4%) at 16,378 as of Thursday, Aug. 7, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,344 issues advancing vs. 1,660 declining with 123 unchanged.

The Utilities sector currently sits up 0.1% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the sector include EQT ( EQT), down 1.4%, Empresa Nacional de Electricidad ( EOC), down 0.9% and Korea Electric Power ( KEP), down 0.6%. Top gainers within the sector include NextEra Energy ( NEE), up 1.4%, PPL ( PPL), up 1.1%, Public Service Enterprise Group ( PEG), up 0.9%, Exelon ( EXC), up 0.8% and American Electric Power ( AEP), up 0.8%.

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

3. CPFL Energy ( CPL) is one of the companies pushing the Utilities sector lower today. As of noon trading, CPFL Energy is down $0.20 (-1.1%) to $17.15 on average volume. Thus far, 138,265 shares of CPFL Energy exchanged hands as compared to its average daily volume of 356,500 shares. The stock has ranged in price between $17.13-$17.47 after having opened the day at $17.25 as compared to the previous trading day's close of $17.35.

CPFL Energia S.A., together with its subsidiaries, generates, distributes, and commercializes electricity to industrial, residential, commercial, rural, and other consumers in Brazil. CPFL Energy has a market cap of $8.4 billion and is part of the utilities industry. Shares are up 8.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts that rate CPFL Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates CPFL Energy as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. Get the full CPFL Energy 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, TransCanada ( TRP) is down $0.32 (-0.7%) to $49.13 on average volume. Thus far, 253,558 shares of TransCanada exchanged hands as compared to its average daily volume of 575,200 shares. The stock has ranged in price between $48.96-$49.71 after having opened the day at $49.58 as compared to the previous trading day's close of $49.45.

TransCanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. TransCanada has a market cap of $34.9 billion and is part of the energy industry. Shares are up 8.3% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts that rate TransCanada a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates TransCanada 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 stock price during the past year, expanding profit margins and notable return on equity. 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 TransCanada 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, NRG Energy ( NRG) is down $0.32 (-1.1%) to $29.79 on heavy volume. Thus far, 3.0 million shares of NRG Energy exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $29.54-$30.54 after having opened the day at $30.19 as compared to the previous trading day's close of $30.11.

NRG Energy, Inc., together with its subsidiaries, operates as a power and energy company. The company is engaged in the ownership and operation of power generation facilities. NRG Energy has a market cap of $10.4 billion and is part of the utilities industry. Shares are up 4.8% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate NRG Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates NRG Energy as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and poor profit margins. Get the full NRG Energy 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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