3 Stocks Dragging 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.

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 7 points (0.0%) at 17,032 as of Friday, Aug. 22, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,152 issues advancing vs. 1,771 declining with 181 unchanged.

The Utilities sector currently sits up 0.1% versus the S&P 500, which is unchanged.

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 $0.40 (-2.0%) to $19.10 on light volume. Thus far, 119,312 shares of CPFL Energy exchanged hands as compared to its average daily volume of 354,400 shares. The stock has ranged in price between $19.02-$19.53 after having opened the day at $19.50 as compared to the previous trading day's close of $19.50.

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 $9.3 billion and is part of the utilities industry. Shares are up 21.8% year-to-date as of the close of trading on Thursday. 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 $0.39 (-0.8%) to $51.24 on average volume. Thus far, 432,504 shares of TransCanada exchanged hands as compared to its average daily volume of 660,800 shares. The stock has ranged in price between $51.05-$51.74 after having opened the day at $51.70 as compared to the previous trading day's close of $51.63.

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 $36.8 billion and is part of the energy industry. Shares are up 13.1% year-to-date as of the close of trading on Thursday. 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, increase in stock price during the past year, growth in earnings per share, expanding profit margins and good cash flow from operations. 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, American Electric Power ( AEP) is down $0.38 (-0.7%) to $52.42 on average volume. Thus far, 1.1 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 $52.06-$52.87 after having opened the day at $52.70 as compared to the previous trading day's close of $52.80.

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 $25.6 billion and is part of the utilities industry. Shares are up 13.0% year-to-date as of the close of trading on Thursday. Currently there are 7 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, good cash flow from operations and notable return on equity. 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.

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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