3 Stocks Pushing The Utilities Sector Lower

The Utilities sector as a whole closed the day down 0.2% versus the S&P 500, which was down 1.0%. Laggards within the Utilities sector included GreenHunter Resources ( GRH), down 3.7%, Centrais Eletricas Brasileiras ( EBR.B), down 2.5%, U S Geothermal ( HTM), down 3.3%, Gas Natural ( EGAS), down 3.4% and Transportadora de Gas del Sur ( TGS), down 4.8%.

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

U S Geothermal ( HTM) is one of the companies that pushed the Utilities sector lower today. U S Geothermal was down $0.02 (3.3%) to $0.59 on light volume. Throughout the day, 216,017 shares of U S Geothermal exchanged hands as compared to its average daily volume of 364,900 shares. The stock ranged in price between $0.59-$0.62 after having opened the day at $0.62 as compared to the previous trading day's close of $0.61.

U.S. Geothermal, Inc. constructs, manages, and operates power plants that utilize geothermal resources in the Western United States. U S Geothermal has a market cap of $57.2 million and is part of the utilities industry. Shares are up 32.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate U S Geothermal a buy, no analysts rate it a sell, and 2 rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates U S Geothermal as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on HTM go as follows:

  • Even though the current debt-to-equity ratio is 1.13, it is still below the industry average, suggesting that this level of debt is acceptable within the Independent Power Producers & Energy Traders industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.54 is very high and demonstrates very strong liquidity.
  • 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 Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 45.2% when compared to the same quarter one year ago, falling from $1.34 million to $0.73 million.
  • Net operating cash flow has declined marginally to $4.93 million or 1.88% 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.

You can view the full analysis from the report here: U S Geothermal Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, Centrais Eletricas Brasileiras ( EBR.B) was down $0.06 (2.5%) to $2.30 on light volume. Throughout the day, 51,045 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 83,800 shares. The stock ranged in price between $2.24-$2.33 after having opened the day at $2.31 as compared to the previous trading day's close of $2.36.

Centrais Eletricas Brasileiras S.A. - Eletrobras, together with its subsidiaries, generates, transmits, and distributes electricity in Brazil. The company projects, builds, and operates generating power plants, and electric power transmission and distribution lines. Centrais Eletricas Brasileiras has a market cap of $3.2 billion and is part of the utilities industry. Shares are down 17.8% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, poor profit margins 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 compared to the Electric Utilities industry average, but is greater than that of the S&P 500. The net income has decreased by 9.8% when compared to the same quarter one year ago, dropping from $437.17 million to $394.20 million.
  • Net operating cash flow has significantly decreased to $334.91 million or 55.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for ELETROBRAS-CENTR ELETR BRAS is rather low; currently it is at 15.58%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.59% is above that of the industry average.
  • Looking at the price performance of EBR.B's shares over the past 12 months, there is not much good news to report: the stock is down 50.94%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

GreenHunter Resources ( GRH) was another company that pushed the Utilities sector lower today. GreenHunter Resources was down $0.02 (3.7%) to $0.52 on average volume. Throughout the day, 91,500 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 80,700 shares. The stock ranged in price between $0.51-$0.54 after having opened the day at $0.54 as compared to the previous trading day's close of $0.54.

GreenHunter Resources, Inc. provides water management solutions in the United States. It offers water solutions for the 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 25.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates 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 disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Highlights from TheStreet Ratings analysis on GRH go as follows:

  • 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 -$0.13 million or 109.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for GREENHUNTER RESOURCES INC is currently lower than what is desirable, coming in at 34.02%. Regardless of GRH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GRH's net profit margin of -28.36% significantly underperformed when compared to the industry average.
  • 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 76.89%, 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. 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.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income has decreased by 5.2% when compared to the same quarter one year ago, dropping from -$1.39 million to -$1.46 million.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Jim Cramer Live: Breaking Down the Markets and Dave & Buster's

Jim Cramer Live: Breaking Down the Markets and Dave & Buster's

Dow Jumps on Signs of Progress in U.S.-China Trade Discussions

Dow Jumps on Signs of Progress in U.S.-China Trade Discussions

American Eagle Shares Fall After Company Issues Weak Guidance

American Eagle Shares Fall After Company Issues Weak Guidance

Here's Why I Like Adobe Stock Long-Term

Here's Why I Like Adobe Stock Long-Term

Here Are 3 Small-Cap Names for Biotech Investors to Consider

Here Are 3 Small-Cap Names for Biotech Investors to Consider