3 Stocks Raising The Utilities Sector Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 39 points (0.2%) at 17,554 as of Wednesday, Jan. 21, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,967 issues advancing vs. 1,121 declining with 130 unchanged.

The Utilities sector as a whole closed the day up 0.9% versus the S&P 500, which was up 0.5%. Top gainers within the Utilities sector included American DG Energy ( ADGE), up 1.7%, Ellomay Capital ( ELLO), up 2.7%, GreenHunter Resources ( GRH), up 1.7%, Transportadora de Gas del Sur ( TGS), up 2.0% and Centrais Eletricas Brasileiras ( EBR.B), up 3.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Centrais Eletricas Brasileiras ( EBR.B) is one of the companies that pushed the Utilities sector higher today. Centrais Eletricas Brasileiras was up $0.09 (3.2%) to $2.89 on light volume. Throughout the day, 133,112 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 245,000 shares. The stock ranged in a price between $2.70-$2.91 after having opened the day at $2.70 as compared to the previous trading day's close of $2.80.

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 $3.9 billion and is part of the utilities industry. Shares are down 2.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Centrais Eletricas Brasileiras a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on EBR.B go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electric Utilities industry. The net income has significantly decreased by 180.7% when compared to the same quarter one year ago, falling from -$412.68 million to -$1,158.57 million.
  • Net operating cash flow has significantly decreased to $43.36 million or 95.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 29.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 177.41% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electric Utilities industry and the overall market, ELETROBRAS-CENTR ELETR BRAS's return on equity significantly trails that of both the industry average and the S&P 500.
  • EBR.B, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues fell by 24.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Centrais Eletricas Brasileiras Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Transportadora de Gas del Sur ( TGS) was up $0.06 (2.0%) to $3.07 on average volume. Throughout the day, 126,969 shares of Transportadora de Gas del Sur exchanged hands as compared to its average daily volume of 124,800 shares. The stock ranged in a price between $3.03-$3.10 after having opened the day at $3.03 as compared to the previous trading day's close of $3.01.

Transportadora de Gas del Sur S.A. operates as a gas transportation company in Latin America. Transportadora de Gas del Sur has a market cap of $497.4 million and is part of the utilities industry. Shares are down 14.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Transportadora de Gas del Sur a buy, no analysts rate it a sell, and 1 rates it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Transportadora de Gas del Sur as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on TGS go as follows:

  • The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 31.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 50.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRANSPORTADORA DE GAS SUR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to $4.01 million or 73.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Transportadora de Gas del Sur Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

GreenHunter Resources ( GRH) was another company that pushed the Utilities sector higher today. GreenHunter Resources was up $0.01 (1.7%) to $0.61 on light volume. Throughout the day, 78,755 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 227,100 shares. The stock ranged in a price between $0.58-$0.61 after having opened the day at $0.60 as compared to the previous trading day's close of $0.60.

GreenHunter Resources, Inc., an environmental services company, provides water management solutions in the United States. It offers Total Water Management Solutions to the oilfield, including unconventional oil and natural gas shale resource plays. GreenHunter Resources has a market cap of $21.6 million and is part of the utilities industry. Shares are down 16.7% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate GreenHunter Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates GreenHunter Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GRH go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 625.9% when compared to the same quarter one year ago, falling from -$0.37 million to -$2.69 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, GREENHUNTER RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.09 million or 60.96% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GRH's debt-to-equity ratio of 0.97 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.40 is very low and demonstrates very weak liquidity.
  • GRH's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.80%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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