3 Stocks Raising The Energy Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 61 points (0.4%) at 16,694 as of Thursday, May 29, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,757 issues advancing vs. 1,207 declining with 183 unchanged.

The Energy industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.4%. Top gainers within the Energy industry included PostRock Energy ( PSTR), up 6.4%, WSP Holdings ( WH), up 16.6%, Forbes Energy Services ( FES), up 2.6%, Isramco ( ISRL), up 1.6% and New Concept Energy ( GBR), up 1.7%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Forbes Energy Services ( FES) is one of the companies that pushed the Energy industry higher today. Forbes Energy Services was up $0.10 (2.6%) to $4.00 on light volume. Throughout the day, 3,828 shares of Forbes Energy Services exchanged hands as compared to its average daily volume of 28,100 shares. The stock ranged in a price between $3.97-$4.03 after having opened the day at $3.98 as compared to the previous trading day's close of $3.90.

Forbes Energy Services Ltd., an independent oilfield services contractor, provides a range of well site services for oil and natural gas drilling and producing companies to develop and enhance the production of oil and natural gas in the United States. Forbes Energy Services has a market cap of $85.7 million and is part of the basic materials sector. Shares are up 19.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Forbes Energy Services a buy, no analysts rate it a sell, and 1 rates 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 Forbes Energy Services as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on FES go as follows:

  • The debt-to-equity ratio is very high at 2.48 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market, FORBES ENERGY SERVICES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FORBES ENERGY SERVICES LTD is rather low; currently it is at 24.70%. Regardless of FES's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FES's net profit margin of -1.17% significantly underperformed when compared to the industry average.
  • FORBES ENERGY SERVICES LTD has improved earnings per share by 46.1% in the most recent quarter compared to 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, FORBES ENERGY SERVICES LTD swung to a loss, reporting -$0.63 versus $0.01 in the prior year. This year, the market expects an improvement in earnings (-$0.25 versus -$0.63).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Energy Equipment & Services industry average. The net income increased by 52.6% when compared to the same quarter one year prior, rising from -$2.73 million to -$1.29 million.

You can view the full analysis from the report here: Forbes Energy Services 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, WSP Holdings ( WH) was up $0.30 (16.6%) to $2.10 on heavy volume. Throughout the day, 90,609 shares of WSP Holdings exchanged hands as compared to its average daily volume of 23,700 shares. The stock ranged in a price between $1.80-$2.13 after having opened the day at $1.80 as compared to the previous trading day's close of $1.80.

WSP Holdings Limited, together with its subsidiaries, manufactures and sells seamless oil country tubular goods. WSP Holdings has a market cap of $41.1 million and is part of the basic materials sector. Shares are down 34.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate WSP Holdings a buy, no analysts rate it a sell, and none 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 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

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

PostRock Energy ( PSTR) was another company that pushed the Energy industry higher today. PostRock Energy was up $0.09 (6.4%) to $1.50 on heavy volume. Throughout the day, 42,597 shares of PostRock Energy exchanged hands as compared to its average daily volume of 25,400 shares. The stock ranged in a price between $1.38-$1.54 after having opened the day at $1.39 as compared to the previous trading day's close of $1.41.

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 $42.9 million and is part of the basic materials sector. Shares are up 22.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate PostRock Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates PostRock Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PSTR go as follows:

  • Currently the debt-to-equity ratio of 1.58 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 0.45, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has significantly decreased to $2.32 million or 94.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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.
  • 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.
  • 46.64% is the gross profit margin for POSTROCK ENERGY CORP which we consider to be strong. 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 -40.89% is in-line with the industry average.

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.

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.

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