3 Utilities Stocks Dragging The Sector Down

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 lower today with the Dow Jones Industrial Average ( ^DJI) trading up 53 points (0.3%) at 16,712 as of Friday, Oct. 10, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,328 issues advancing vs. 1,700 declining with 123 unchanged.

The Utilities sector currently sits up 0.5% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Huaneng Power International ( HNP), down 4.3%, Centrais Eletricas Brasileiras ( EBR.B), down 3.9%, Western Gas Equity Partners ( WGP), down 1.7% and Praxair ( PX), down 0.6%. Top gainers within the sector include PG&E ( PCG), up 1.8%, TransCanada ( TRP), up 1.6%, Exelon ( EXC), up 1.5%, Xcel Energy ( XEL), up 1.4% and Dominion Resources ( D), up 1.2%.

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

3. Centrais Eletricas Brasileiras ( EBR) is one of the companies pushing the Utilities sector lower today. As of noon trading, Centrais Eletricas Brasileiras is down $0.11 (-3.7%) to $2.87 on average volume. Thus far, 404,513 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 810,400 shares. The stock has ranged in price between $2.81-$2.95 after having opened the day at $2.95 as compared to the previous trading day's close of $2.98.

Centrais Eletricas Brasileiras S.A. - Eletrobras, together with its subsidiaries, generates, transmits, and distributes electricity in Brazil. It projects, builds, and operates generating power plants, and electric power transmission and distribution lines. Centrais Eletricas Brasileiras has a market cap of $4.0 billion and is part of the utilities industry. Shares are up 15.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts that rate Centrais Eletricas Brasileiras a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Centrais Eletricas Brasileiras as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full Centrais Eletricas Brasileiras 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, Empresa Nacional de Electricidad ( EOC) is down $0.47 (-1.1%) to $43.95 on average volume. Thus far, 31,582 shares of Empresa Nacional de Electricidad exchanged hands as compared to its average daily volume of 81,400 shares. The stock has ranged in price between $43.32-$44.32 after having opened the day at $44.32 as compared to the previous trading day's close of $44.42.

Empresa Nacional de Electricidad S.A., together with its subsidiaries, operates as an electricity utility company in Chile, Argentina, Brazil, Colombia, and Peru. The company generates and transmits electricity though hydroelectric, thermal, and wind power sources. Empresa Nacional de Electricidad has a market cap of $12.2 billion and is part of the utilities industry. Shares are down 0.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts that rate Empresa Nacional de Electricidad a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Empresa Nacional de Electricidad as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Empresa Nacional de Electricidad 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, Targa Resources ( TRGP) is down $4.28 (-3.4%) to $121.96 on heavy volume. Thus far, 520,380 shares of Targa Resources exchanged hands as compared to its average daily volume of 264,300 shares. The stock has ranged in price between $118.08-$125.70 after having opened the day at $125.09 as compared to the previous trading day's close of $126.24.

Targa Resources Corp., through its general and limited partner interests in Targa Resources Partners LP, provides midstream natural gas and natural gas liquid (NGL) services in the United States. The company operates in two divisions, Gathering and Processing, and Logistics and Marketing. Targa Resources has a market cap of $5.6 billion and is part of the energy industry. Shares are up 43.2% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Targa Resources a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Targa Resources as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. 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 Targa Resources 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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