Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Energy industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.1%. Laggards within the Energy industry included

Lilis Energy

(

LLEX

), down 2.4%,

Houston American Energy

(

HUSA

), down 5.0%,

WSP Holdings

(

WH

), down 2.5%,

Ivanhoe Energy

(

IVAN

), down 6.6% and

KiOR

(

KIOR

), down 2.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Ivanhoe Energy

(

IVAN

) is one of the companies that pushed the Energy industry lower today. Ivanhoe Energy was down $0.02 (6.6%) to $0.24 on light volume. Throughout the day, 204,529 shares of Ivanhoe Energy exchanged hands as compared to its average daily volume of 512,900 shares. The stock ranged in price between $0.23-$0.26 after having opened the day at $0.25 as compared to the previous trading day's close of $0.26.

Ivanhoe Energy has a market cap of $28.7 million and is part of the basic materials sector. Shares are down 59.7% year-to-date as of the close of trading on Tuesday.

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At the close,

WSP Holdings

(

WH

) was down $0.02 (2.5%) to $0.78 on light volume. Throughout the day, 44,709 shares of WSP Holdings exchanged hands as compared to its average daily volume of 61,300 shares. The stock ranged in price between $0.75-$0.84 after having opened the day at $0.78 as compared to the previous trading day's close of $0.80.

WSP Holdings Limited, together with its subsidiaries, manufactures and sells seamless oil country tubular goods. WSP Holdings has a market cap of $16.9 million and is part of the basic materials sector. Shares are down 70.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

WSP Holdings

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on WH go as follows:

  • WSP HOLDINGS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, WSP HOLDINGS LTD reported poor results of -$4.12 versus -$3.30 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 55.5% when compared to the same quarter one year ago, falling from -$16.61 million to -$25.83 million.
  • The debt-to-equity ratio is very high at 6.75 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.33, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, WSP HOLDINGS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for WSP HOLDINGS LTD is rather low; currently it is at 20.56%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, WH's net profit margin of -21.64% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

WSP Holdings Ratings Report

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Houston American Energy

(

HUSA

) was another company that pushed the Energy industry lower today. Houston American Energy was down $0.02 (5.0%) to $0.32 on heavy volume. Throughout the day, 220,966 shares of Houston American Energy exchanged hands as compared to its average daily volume of 141,300 shares. The stock ranged in price between $0.31-$0.34 after having opened the day at $0.34 as compared to the previous trading day's close of $0.34.

Houston American Energy Corp., an independent energy company, explores for, develops, and produces natural gas, crude oil, and condensate from properties located principally in the Gulf Coast area of the United States and South America. Houston American Energy has a market cap of $18.8 million and is part of the basic materials sector. Shares are up 34.8% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Houston American Energy

as a

sell

. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

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Highlights from TheStreet Ratings analysis on HUSA go as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, HOUSTON AMERN ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The gross profit margin for HOUSTON AMERN ENERGY CORP is currently very high, coming in at 74.53%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -504.71% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.70 million or 19.70% when compared to the same quarter last year. In addition, HOUSTON AMERN ENERGY CORP has also modestly surpassed the industry average cash flow growth rate of 16.72%.
  • HUSA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 35.70, which clearly demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here:

Houston American Energy Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.