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Electric utilities

Utilities Sector Under Pressure Amid Market Volatility

Strategic Insights

— 2 min read

The Utilities sector is experiencing a mixed trading day with some companies pushing it lower, despite a broadly positive market. As of 11:55 AM ET on Tuesday, Nov. 3, 2015, the Dow Jones Industrial Average is up 86 points (0.5%) at 17,915. However, the Utilities sector is currently unchanged versus the S&P 500, which is up 0.2%.

American Electric Power (AEP) is one of the companies leading the sector lower, down $0.49 (-0.9%) to $56.40 on light volume. PG&E (PCG) is also experiencing a decline, down $0.55 (-1.0%) to $53.00 on light volume. Duke Energy Corporation (DUK) is down $0.47 (-0.7%) to $71.71 on light volume.

Despite the declines, TheStreet Ratings rates American Electric Power, PG&E, and Duke Energy Corporation as buys. The companies' strengths include revenue growth, growth in earnings per share, increase in net income, good cash flow from operations, and attractive valuation levels.

Key Takeaways:

  • American Electric Power (AEP) is down 6.3% year-to-date, while PG&E (PCG) is up 0.6% year-to-date.
  • Duke Energy Corporation (DUK) is down 13.6% year-to-date.
  • The Utilities sector is currently unchanged versus the S&P 500, which is up 0.2%.
  • TheStock has ranged in price between $56.38-$57.04, $52.97-$53.61, and $71.50-$72.29 for American Electric Power, PG&E, and Duke Energy Corporation, respectively.
  • There are 8 analysts that rate American Electric Power a buy, compared to 6 analysts for PG&E and 7 analysts for Duke Energy Corporation.
  • TheStreet Ratings rates American Electric Power, PG&E, and Duke Energy Corporation as buys, citing strengths in revenue growth, earnings per share growth, net income increase, and cash flow from operations.

Statistics:

  • Dow Jones Industrial Average: up 86 points (0.5%) at 17,915.
  • NYSE advances/declines ratio: 1,603 issues advancing vs. 1,362 declining, with 155 unchanged.
  • Volume on American Electric Power: 689,737 shares, compared to its average daily volume of 3.0 million shares.
  • Volume on PG&E: 769,653 shares, compared to its average daily volume of 3.6 million shares.
  • Volume on Duke Energy Corporation: 942,306 shares, compared to its average daily volume of 3.4 million shares.

Sources:

  • "TheStreet" (http://www.thestreet.com)
  • "American Electric Power Company, Inc." (http://www.aep.com)
  • "PG&E Corporation" (http://www.pge.com)
  • "Duke Energy Corporation" (http://www.duke-energy.com)
  • "Utilities Select Sector SPDR" (http://www.etf.com)
  • "ProShares UltraShort Utilities" (http://www.etfs.com)

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