Utilities Sector Struggles Amid Market Volatility

Strategic Insights -

The Utilities sector is experiencing a tough day amidst market fluctuations, with the S&P 500 sector index down 0.3% as of 12:55 PM ET on Wednesday, September 2, 2015. Within the Utilities sector, several companies are experiencing declines, including Energy Company of Parana (ELP), Suburban Propane Partners (SPH), and CPFL Energy (CPL).

Key Takeaways:

  • NRG Energy (NRG) is down $0.30 (-1.6%) to $18.94 as of noon trading, with 1.8 million shares exchanged hands compared to its average daily volume of 4.8 million shares.
  • EQT Corporation (EQT) is down $0.94 (-1.2%) to $74.52 on light volume, with 531,317 shares exchanged hands compared to its average daily volume of 1.5 million shares.
  • Sempra Energy (SRE) is down $0.73 (-0.8%) to $91.49 on average volume, with 899,269 shares exchanged hands compared to its average daily volume of 1.2 million shares.
  • The Utilities sector is experiencing disappointing performance due to various factors, including high debt management risk and poor profit margins.
  • NRG Energy has a market cap of $6.6 billion and a P/E ratio of 71.1, compared to the S&P 500 P/E ratio of 24.9.
  • EQT Corporation has a market cap of $11.9 billion and a P/E ratio of 45.2, above the S&P 500 P/E ratio of 24.9.
  • Sempra Energy has a market cap of $23.5 billion and a P/E ratio of 17.3, below the S&P 500 P/E ratio of 24.9.

Statistics:

  • NRG Energy stock has ranged in price between $18.68-$19.71, with an average daily volume of 4.8 million shares.
  • EQT Corporation stock has ranged in price between $73.90-$77.42, with an average daily volume of 1.5 million shares.
  • Sempra Energy stock has ranged in price between $90.68-$93.30, with an average daily volume of 1.2 million shares.
  • The Utilities sector index is down 0.3% as of 12:55 PM ET on Wednesday, September 2, 2015.

Sources:

  • "NRG Energy: How Big Banks Are Killing the Value of Your Money" by Jim Cramer
  • "EQT Corporation: Utilities Index Down 0.3% Amid Market Volatility"
  • "Sempra Energy: Growth in Earnings Per Share and Increase in Net Income"
  • TheStreet Wire
  • Utilities Select Sector SPDR (XLU)
  • ProShares UltraShort Utilities (SDP)