3 Stocks Pushing The Utilities Sector Lower

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The Utilities sector as a whole closed the day down 1.4% versus the S&P 500, which was down 0.6%. Laggards within the Utilities sector included Artesian Resource ( ARTNA), down 1.8%, Centrais Eletricas Brasileiras ( EBR.B), down 2.9%, Cadiz ( CDZI), down 3.2%, Gas Natural ( EGAS), down 2.0% and Niska Gas Storage Partners ( NKA), down 1.9%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Cadiz ( CDZI) is one of the companies that pushed the Utilities sector lower today. Cadiz was down $0.39 (3.2%) to $11.71 on average volume. Throughout the day, 71,215 shares of Cadiz exchanged hands as compared to its average daily volume of 86,800 shares. The stock ranged in price between $11.63-$12.25 after having opened the day at $12.14 as compared to the previous trading day's close of $12.10.

Cadiz Inc. operates as a land and water resource development company in the United States. The company is involved in the water resource, and land and agricultural development activities in San Bernardino County properties. Cadiz has a market cap of $201.2 million and is part of the utilities industry. Shares are up 73.8% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Cadiz as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on CDZI go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Water Utilities industry average. The net income has decreased by 1.2% when compared to the same quarter one year ago, dropping from -$4.46 million to -$4.52 million.
  • CADIZ INC's earnings per share improvement from the most recent quarter was slightly positive. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CADIZ INC reported poor results of -$1.46 versus -$1.28 in the prior year.
  • The gross profit margin for CADIZ INC is currently very high, coming in at 100.00%. CDZI has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, CDZI's net profit margin of -41045.45% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$2.12 million or 44.55% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.18%.
  • Investors have driven up the company's shares by 169.52% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in CDZI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: Cadiz Ratings Report

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