3 Stocks Pushing The Energy Industry Lower

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 up 0.1% versus the S&P 500, which was down 0.1%. Laggards within the Energy industry included WSP Holdings ( WH), down 10.4%, Tengasco ( TGC), down 4.5%, Escalera Resources ( ESCR), down 2.3%, New Concept Energy ( GBR), down 11.2% and TGC Industries ( TGE), down 2.4%.

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

GulfMark Offshore ( GLF) is one of the companies that pushed the Energy industry lower today. GulfMark Offshore was down $0.73 (1.6%) to $45.57 on light volume. Throughout the day, 135,982 shares of GulfMark Offshore exchanged hands as compared to its average daily volume of 213,700 shares. The stock ranged in price between $45.35-$46.23 after having opened the day at $46.00 as compared to the previous trading day's close of $46.30.

GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. GulfMark Offshore has a market cap of $1.2 billion and is part of the basic materials sector. Shares are down 1.8% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate GulfMark Offshore a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates GulfMark Offshore as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on GLF go as follows:

  • The revenue growth came in higher than the industry average of 11.2%. Since the same quarter one year prior, revenues rose by 23.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GULFMARK OFFSHORE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GULFMARK OFFSHORE INC increased its bottom line by earning $2.69 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($3.92 versus $2.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 476.7% when compared to the same quarter one year prior, rising from $2.87 million to $16.56 million.
  • 46.90% is the gross profit margin for GULFMARK OFFSHORE INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 13.84% is above that of the industry average.
  • Net operating cash flow has significantly increased by 386.64% to $17.65 million when compared to the same quarter last year. In addition, GULFMARK OFFSHORE INC has also vastly surpassed the industry average cash flow growth rate of 49.36%.

You can view the full analysis from the report here: GulfMark Offshore Ratings Report

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At the close, TGC Industries ( TGE) was down $0.11 (2.4%) to $4.53 on light volume. Throughout the day, 33,371 shares of TGC Industries exchanged hands as compared to its average daily volume of 58,600 shares. The stock ranged in price between $4.37-$4.64 after having opened the day at $4.61 as compared to the previous trading day's close of $4.64.

TGC Industries, Inc. provides geophysical services to companies in the oil and gas industry in the United States and Canada. TGC Industries has a market cap of $97.7 million and is part of the basic materials sector. Shares are down 39.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates TGC Industries as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on TGE go as follows:

  • TGE'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.
  • The revenue fell significantly faster than the industry average of 11.2%. Since the same quarter one year prior, revenues fell by 22.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TGC INDUSTRIES INC's earnings per share declined by 33.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TGC INDUSTRIES INC swung to a loss, reporting -$0.28 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus -$0.28).
  • 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, TGC INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TGC INDUSTRIES INC is currently lower than what is desirable, coming in at 30.51%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.77% trails that of the industry average.

You can view the full analysis from the report here: TGC Industries Ratings Report

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WSP Holdings ( WH) was another company that pushed the Energy industry lower today. WSP Holdings was down $0.21 (10.4%) to $1.80 on average volume. Throughout the day, 24,325 shares of WSP Holdings exchanged hands as compared to its average daily volume of 21,900 shares. The stock ranged in price between $1.77-$1.95 after having opened the day at $1.95 as compared to the previous trading day's close of $2.01.

WSP Holdings Limited, together with its subsidiaries, manufactures and sells seamless oil country tubular goods. WSP Holdings has a market cap of $44.8 million and is part of the basic materials sector. Shares are down 28.6% year-to-date as of the close of trading on Tuesday.

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.

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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.

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