3 Stocks Pushing The Utilities Sector Lower

The Utilities sector as a whole closed the day down 1.4% versus the S&P 500, which was down 1.7%. Laggards within the Utilities sector included American DG Energy ( ADGE), down 7.4%, GreenHunter Resources ( GRH), down 4.2%, Sky Solar Holdings ( SKYS), down 1.8%, Centrais Eletricas Brasileiras ( EBR.B), down 4.2% and TransAlta ( TAC), down 2.2%.

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

Centrais Eletricas Brasileiras ( EBR.B) is one of the companies that pushed the Utilities sector lower today. Centrais Eletricas Brasileiras was down $0.09 (4.2%) to $2.08 on heavy volume. Throughout the day, 107,159 shares of Centrais Eletricas Brasileiras exchanged hands as compared to its average daily volume of 68,900 shares. The stock ranged in price between $2.00-$2.10 after having opened the day at $2.08 as compared to the previous trading day's close of $2.17.

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 $2.9 billion and is part of the utilities industry. Shares are down 24.4% year-to-date as of the close of trading on Thursday.

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 weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and unimpressive growth in net income.

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

  • 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 53.20%, 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. 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.
  • 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.

At the close, Sky Solar Holdings ( SKYS) was down $0.13 (1.8%) to $7.10 on light volume. Throughout the day, 1,763 shares of Sky Solar Holdings exchanged hands as compared to its average daily volume of 16,800 shares. The stock ranged in price between $7.10-$7.62 after having opened the day at $7.27 as compared to the previous trading day's close of $7.23.

Sky Solar Holdings has a market cap of $378.8 million and is part of the utilities industry. Shares are down 43.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Sky Solar Holdings a buy, no analysts rate it a sell, and none 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.

GreenHunter Resources ( GRH) was another company that pushed the Utilities sector lower today. GreenHunter Resources was down $0.02 (4.2%) to $0.54 on heavy volume. Throughout the day, 160,665 shares of GreenHunter Resources exchanged hands as compared to its average daily volume of 76,900 shares. The stock ranged in price between $0.54-$0.62 after having opened the day at $0.57 as compared to the previous trading day's close of $0.56.

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 $21.8 million and is part of the utilities industry. Shares are down 21.7% year-to-date as of the close of trading on Thursday. 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 73.37%, 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

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Monday Madness: Apple's Looking Pretty Bruised

Monday Madness: Apple's Looking Pretty Bruised

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts

These Bank Stocks Could Be Oversold in the Market Wreckage

These Bank Stocks Could Be Oversold in the Market Wreckage