3 Stocks Moving The Utilities Sector Upward

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 212 points (1.2%) at 17,885 as of Thursday, Feb. 5, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,364 issues advancing vs. 754 declining with 102 unchanged.

The Utilities sector as a whole closed the day up 1.0% versus the S&P 500, which was up 1.0%. Top gainers within the Utilities sector included RGC Resources ( RGCO), up 2.3%, Pure Cycle ( PCYO), up 3.2%, Transportadora de Gas del Sur ( TGS), up 3.3%, Empresa Distribuidora y Comercializadora No ( EDN), up 4.4% and York Water ( YORW), up 2.5%.

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

Empresa Distribuidora y Comercializadora No ( EDN) is one of the companies that pushed the Utilities sector higher today. Empresa Distribuidora y Comercializadora No was up $0.44 (4.4%) to $10.46 on light volume. Throughout the day, 25,373 shares of Empresa Distribuidora y Comercializadora No exchanged hands as compared to its average daily volume of 39,800 shares. The stock ranged in a price between $10.01-$10.47 after having opened the day at $10.02 as compared to the previous trading day's close of $10.02.

Empresa Distribuidora y Comercializadora Norte S.A., a public service company, is engaged in the distribution and sale of electricity in Argentina. Empresa Distribuidora y Comercializadora No has a market cap of $453.7 million and is part of the utilities industry. Shares are up 6.9% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Empresa Distribuidora y Comercializadora No a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Empresa Distribuidora y Comercializadora No as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on EDN go as follows:

  • Net operating cash flow has decreased to $52.55 million or 16.34% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Electric Utilities industry average, but is greater than that of the S&P 500. The net income increased by 22.0% when compared to the same quarter one year prior, going from -$105.34 million to -$82.17 million.
  • The revenue fell significantly faster than the industry average of 11.7%. Since the same quarter one year prior, revenues fell by 20.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • EMPRESA DISTRIBUIDORA Y COM has improved earnings per share by 25.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, EMPRESA DISTRIBUIDORA Y COM turned its bottom line around by earning $3.47 versus -$4.70 in the prior year.
  • This stock has increased by 104.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in EDN 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: Empresa Distribuidora y Comercializadora No 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 $0.11 (3.3%) to $3.43 on average volume. Throughout the day, 111,934 shares of Transportadora de Gas del Sur exchanged hands as compared to its average daily volume of 94,000 shares. The stock ranged in a price between $3.28-$3.45 after having opened the day at $3.34 as compared to the previous trading day's close of $3.32.

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 $516.4 million and is part of the utilities industry. Shares are down 5.1% year-to-date as of the close of trading on Wednesday. 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 11.8%. 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 65.76% 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.

Pure Cycle ( PCYO) was another company that pushed the Utilities sector higher today. Pure Cycle was up $0.14 (3.2%) to $4.56 on light volume. Throughout the day, 46,896 shares of Pure Cycle exchanged hands as compared to its average daily volume of 67,100 shares. The stock ranged in a price between $4.23-$4.70 after having opened the day at $4.41 as compared to the previous trading day's close of $4.42.

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area, the United States. Pure Cycle has a market cap of $100.5 million and is part of the utilities industry. Shares are up 10.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Pure Cycle a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Pure Cycle as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PCYO go as follows:

  • The revenue growth greatly exceeded the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 44.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • PCYO's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.28, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for PURE CYCLE CORP is currently very high, coming in at 78.54%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PCYO's net profit margin of 1.19% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to -$0.28 million or 129.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • PCYO'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 27.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

You can view the full analysis from the report here: Pure Cycle 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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