3 Stocks Pushing The Utilities Sector Lower

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The Utilities sector as a whole closed the day down 0.8% versus the S&P 500, which was down 1.6%. Laggards within the Utilities sector included Ellomay Capital ( ELLO), down 2.1%, Centrais Eletricas Brasileiras ( EBR.B), down 1.8%, Ocean Power Technologies ( OPTT), down 5.7%, CorEnergy Infrastructure ( CORR), down 2.4% and Southcross Energy Partners ( SXE), down 3.2%.

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

CorEnergy Infrastructure ( CORR) is one of the companies that pushed the Utilities sector lower today. CorEnergy Infrastructure was down $0.18 (2.4%) to $7.46 on average volume. Throughout the day, 136,361 shares of CorEnergy Infrastructure exchanged hands as compared to its average daily volume of 161,400 shares. The stock ranged in price between $7.28-$7.67 after having opened the day at $7.54 as compared to the previous trading day's close of $7.64.

CorEnergy Infrastructure Trust, Inc. is a trust launched and managed by Corridor InfraTrust Management, LLC. The trust primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies. CorEnergy Infrastructure has a market cap of $240.5 million and is part of the utilities industry. Shares are up 7.3% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate CorEnergy Infrastructure a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates CorEnergy Infrastructure as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on CORR go as follows:

  • The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 19.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 8.77% over the past twelve months. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 4194.3% when compared to the same quarter one year prior, rising from $0.07 million to $3.01 million.
  • CORENERGY INFRASTRUCTURE TR has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CORENERGY INFRASTRUCTURE TR reported lower earnings of $0.18 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.18).
  • The gross profit margin for CORENERGY INFRASTRUCTURE TR is currently lower than what is desirable, coming in at 32.60%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, CORR's net profit margin of 33.30% significantly outperformed against the industry.

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

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