AES, NRG And EQT, Pushing 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.

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.2%) at 17,108 as of Wednesday, Sept. 3, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,478 issues advancing vs. 1,497 declining with 182 unchanged.

The Utilities sector currently sits up 0.3% versus the S&P 500, which is up 0.1%. Top gainers within the sector include Korea Electric Power ( KEP), up 2.8%, Huaneng Power International ( HNP), up 1.3%, Edison International ( EIX), up 1.2%, Public Service Enterprise Group ( PEG), up 1.1% and Consolidated Edison ( ED), up 1.1%.

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

3. AES Corporation ( AES) is one of the companies pushing the Utilities sector lower today. As of noon trading, AES Corporation is down $0.27 (-1.8%) to $14.68 on average volume. Thus far, 2.0 million shares of AES Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $14.68-$14.99 after having opened the day at $14.96 as compared to the previous trading day's close of $14.95.

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. AES Corporation has a market cap of $11.0 billion and is part of the utilities industry. Shares are up 3.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate AES Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates AES Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full AES Corporation 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, NRG Energy ( NRG) is down $0.27 (-0.9%) to $30.20 on light volume. Thus far, 883,416 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 $30.15-$30.65 after having opened the day at $30.44 as compared to the previous trading day's close of $30.47.

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 6.1% year-to-date as of the close of trading on Tuesday. 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 and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. 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.

1. As of noon trading, EQT ( EQT) is down $0.66 (-0.7%) to $96.91 on light volume. Thus far, 254,337 shares of EQT exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $96.80-$98.04 after having opened the day at $97.82 as compared to the previous trading day's close of $97.57.

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 $15.0 billion and is part of the energy industry. Shares are up 8.7% year-to-date as of the close of trading on Tuesday. Currently there are 10 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 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 good cash flow from operations. 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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