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Electric utilities

Utilities Sector Struggles Amid Market Volatility

Strategic Insights

— 2 min read

The Utilities sector is experiencing a tough day as two of the major indices, the Dow Jones Industrial Average and the S&P 500, trade lower. The Utilities sector itself is down 0.1%, with several key players contributing to its decline. Sempra Energy, Public Service Enterprise Group, and Consolidated Edison are among the top decliners in the sector.

Key Takeaways:

  • Sempra Energy (SRE) is down 1.5% to $96.36 on average volume, with 871,024 shares exchanged hands as compared to its average daily volume of 1.2 million shares.
  • Public Service Enterprise Group (PEG) is down 2.7% to $39.83 on average volume, with 1.6 million shares exchanged hands as compared to its average daily volume of 3.2 million shares.
  • Consolidated Edison (ED) is down 1.9% to $62.70 on light volume, with 755,629 shares exchanged hands as compared to its average daily volume of 2.4 million shares.
  • All three companies have a market capitalization in the tens of billions of dollars, with Sempra Energy at $24.0 billion and Public Service Enterprise Group and Consolidated Edison at $20.4 billion and $18.6 billion, respectively.
  • The Utilities sector has experienced a decline of 0.1% as of Friday, August 28, 2015, with several key players contributing to its decline.
  • The company's strengths can be seen in multiple areas for Sempra Energy, including its growth in earnings per share, increase in net income, good cash flow from operations, notable return on equity, and reasonable valuation levels.
  • The company's strengths can also be seen in multiple areas for Public Service Enterprise Group, including its revenue growth, solid stock price performance, notably return on equity, attractive valuation levels, and expanding profit margins.
  • Consolidated Edison has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 24.8.
  • TheStreet Ratings rates all three companies as buys.

Statistics:

  • Sempra Energy has declined 12.1% year-to-date as of the close of trading on Thursday.
  • Public Service Enterprise Group has declined 1.1% year-to-date as of the close of trading on Thursday.
  • Consolidated Edison has declined 3.2% year-to-date as of the close of trading on Thursday.
  • Utilities Select Sector SPDR (XLU) may be of interest to investors who are bullish on the utilities sector.
  • ProShares UltraShort Utilities (SDP) may be of interest to investors who are bearish on the utilities sector.

Sources:

  • TheStreet Wire
  • TheStreet.com
  • Sempra Energy (SRE)
  • Public Service Enterprise Group (PEG)
  • Consolidated Edison (ED)
  • Utilities Select Sector SPDR (XLU)
  • ProShares UltraShort Utilities (SDP)

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