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The Energy industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Energy industry included

Sonde Resources

(

SOQ

), down 11.4%,

Barnwell Industries

(

BRN

), down 4.9%,

PostRock Energy

(

PSTR

), down 3.7%,

New Concept Energy

(

GBR

), down 4.5% and

Escalera Resources

(

ESCR

), down 3.0%.

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

Tenaris

(

TS

) is one of the companies that pushed the Energy industry lower today. Tenaris was down $0.72 (1.8%) to $38.95 on average volume. Throughout the day, 1,356,133 shares of Tenaris exchanged hands as compared to its average daily volume of 1,349,600 shares. The stock ranged in price between $38.72-$39.64 after having opened the day at $39.38 as compared to the previous trading day's close of $39.67.

Tenaris S.A., through its subsidiaries, is engaged in the steel pipe manufacturing and distribution activities. Tenaris has a market cap of $22.8 billion and is part of the basic materials sector. Shares are down 9.2% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Tenaris a buy, no analysts rate it a sell, and 7 rate it a hold.

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

TheStreet Ratings rates

Tenaris

as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on TS go as follows:

  • TS's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TS has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 43.77% is the gross profit margin for TENARIS SA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.32% is above that of the industry average.
  • TENARIS SA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TENARIS SA reported lower earnings of $2.63 versus $2.88 in the prior year. This year, the market expects an improvement in earnings ($2.73 versus $2.63).
  • TS, with its decline in revenue, underperformed when compared the industry average of 9.9%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, TS has underperformed the S&P 500 Index, declining 17.37% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

You can view the full analysis from the report here:

Tenaris 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.

At the close,

PostRock Energy

(

PSTR

) was down $0.03 (3.7%) to $0.78 on light volume. Throughout the day, 19,159 shares of PostRock Energy exchanged hands as compared to its average daily volume of 26,900 shares. The stock ranged in price between $0.76-$0.83 after having opened the day at $0.83 as compared to the previous trading day's close of $0.81.

PostRock Energy Corporation, an independent oil and gas company, is engaged in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. PostRock Energy has a market cap of $25.1 million and is part of the basic materials sector. Shares are down 30.2% year-to-date as of the close of trading on Tuesday.

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

TheStreet Ratings rates

PostRock Energy

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PSTR go as follows:

  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 187.0% when compared to the same quarter one year ago, falling from $6.88 million to -$5.99 million.
  • Currently the debt-to-equity ratio of 1.62 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 47.95%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 276.92% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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, POSTROCK ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • POSTROCK ENERGY CORP 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, POSTROCK ENERGY CORP continued to lose money by earning -$0.93 versus -$3.99 in the prior year. This year, the market expects an improvement in earnings (-$0.60 versus -$0.93).

You can view the full analysis from the report here:

PostRock 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.

Sonde Resources

(

SOQ

) was another company that pushed the Energy industry lower today. Sonde Resources was down $0.01 (11.4%) to $0.10 on average volume. Throughout the day, 44,902 shares of Sonde Resources exchanged hands as compared to its average daily volume of 47,100 shares. The stock ranged in price between $0.09-$0.11 after having opened the day at $0.10 as compared to the previous trading day's close of $0.11.

Sonde Resources has a market cap of $6.7 million and is part of the basic materials sector. Shares are down 83.6% year-to-date as of the close of trading on Tuesday.

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