Utilities Sector Struggles Amid Market Volatility

Strategic Insights -

The Utilities sector is experiencing a decline in share prices, with many companies facing challenges such as decreasing revenue growth, poor profit margins, and feeble growth in earnings per share. Despite this, some companies within the sector have shown resilience, attributing their strengths to factors like increased net income, notable return on equity, and good cash flow from operations.

Key Takeaways:

  • CPFL Energy (CPL) has been impacted by a decline in share price, down 3.5% to $12.51, despite its market cap of $6.0 billion and strong cash flow from operations.
  • Energy Company of Parana (ELP) is also down 4.1% to $10.93, with a market cap of $3.1 billion, despite its revenue growth and attractive valuation levels.
  • ONEOK (OKE) has seen a decline of 1.9% to $45.32, with a market cap of $9.8 billion, despite its increase in net income and notable return on equity.
  • The Utilities sector as a whole is down 0.1% compared to the S&P 500, with top decliners including Centrais Eletricas Brasileiras (EBR.B) and TransCanada (TRP).
  • Top gainers within the sector include NiSource (NI), Huaneng Power International (HNP), and Korea Electric Power (KEP), which have seen increases of 2.6%, 2.4%, and 1.7%, respectively.

Statistics:

  • The Dow Jones Industrial Average is trading up 74 points (0.4%) at 17,803 as of Tuesday, Feb. 10, 2015, 12:00 PM ET.
  • The Utilities sector is down 0.1% compared to the S&P 500, with bottom performers including Centrais Eletricas Brasileiras (EBR.B), down 8.2%, and Energy Company of Parana (ELP), down 4.1%.
  • ONEOK (OKE) has a market cap of $9.8 billion, with shares down 7.2% year-to-date as of the close of trading on Monday.
  • TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months, including CPFL Energy, Energy Company of Parana, and ONEOK.

Sources:

  • TheStreet (http://www.thestreet.com/)
  • Dow Jones Industrial Average (http://www.thestreet.com/quote/%5eDJI.html)
  • Centrais Eletricas Brasileiras (http://www.thestreet.com/quote/ebr.b.html?cm_ven_int=tstwire)
  • TransCanada (http://www.thestreet.com/quote/trp.html?cm_ven_int=tstwire)
  • NiSource (http://www.thestreet.com/quote/ni.html?cm_ven_int=tstwire)
  • Huaneng Power International (http://www.thestreet.com/quote/hnp.html?cm_ven_int=tstwire)
  • Korea Electric Power (http://www.thestreet.com/quote/kep.html?cm_ven_int=tstwire)