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Electric utilities

Utilities Sector Under Pressure as Major Indices Trade Up

Strategic Insights

— 2 min read

The Utilities sector is experiencing a challenging day with several prominent companies witnessing significant declines. Pepco Holdings, Edison International, and American Electric Power are among the top decliners within the sector. The Dow Jones Industrial Average is trading up 335 points (2.1%) at 16,206 as of Tuesday, August 25, 2015, 12:55 PM ET. The Utilities sector is down 0.5%, compared to the S&P 500's 2.3% gain.

Key Takeaways:

  • Pepco Holdings (POM) is down $3.63 (-13.5%) to $23.32 on heavy volume, with 17.6 million shares exchanged hands compared to its average daily volume of 1.3 million shares.
  • Edison International (EIX) is down $1.12 (-1.9%) to $58.56 on average volume, with 1.6 million shares exchanged hands compared to its average daily volume of 2.2 million shares.
  • American Electric Power (AEP) is down $0.48 (-0.9%) to $54.35 on average volume, with 1.8 million shares exchanged hands compared to its average daily volume of 2.5 million shares.
  • TheStreet Ratings rates Pepco Holdings, Edison International, and American Electric Power as buys, citing their strengths in revenue growth, cash flow from operations, and good stock price performance.
  • The companies' weaknesses include high debt management risk, subpar growth in net income, and reasonable valuation levels.
  • The Utilities sector is experiencing a challenging day, with major indices trading up despite the sector's decline.
  • The sector's top decliners are Pepco Holdings, Edison International, and American Electric Power, which are down 13.5%, 1.9%, and 0.9% respectively.
  • TheUtilities Select Sector SPDR (XLU) could be an attractive option for investors bullish on the sector, while ProShares UltraShort Utilities (SDP) may be suitable for those bearish on the sector.

Statistics:

  • The Utilities sector is down 0.5% compared to the S&P 500's 2.3% gain.
  • Pepco Holdings (POM) is down $3.63 (-13.5%) to $23.32 on heavy volume, with 17.6 million shares exchanged hands compared to its average daily volume of 1.3 million shares.
  • Edison International (EIX) is down $1.12 (-1.9%) to $58.56 on average volume, with 1.6 million shares exchanged hands compared to its average daily volume of 2.2 million shares.
  • American Electric Power (AEP) is down $0.48 (-0.9%) to $54.35 on average volume, with 1.8 million shares exchanged hands compared to its average daily volume of 2.5 million shares.

Sources:

  • TheStreet Wire, "Utilities Sector Under Pressure as Major Indices Trade Up" (August 25, 2015)
  • TheStreet Ratings, "Pepco Holdings, Edison International, and American Electric Power Ratings Reports"
  • TheStreet.com, "Pepco Holdings (POM), Edison International (EIX), and American Electric Power (AEP) stock quotes"
  • Utilities Select Sector SPDR (XLU) and ProShares UltraShort Utilities (SDP) fund information

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