3 Stocks Advancing The Energy Industry

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 25 points (0.1%) at 16,940 as of Friday, July 11, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,491 issues advancing vs. 1,509 declining with 134 unchanged.

The Energy industry as a whole closed the day down 0.6% versus the S&P 500, which was up 0.2%. Top gainers within the Energy industry included Saratoga Resources ( SARA), up 3.7%, FieldPoint Petroleum ( FPP), up 3.2%, Mexco Energy ( MXC), up 3.4%, GeoPark ( GPRK), up 7.4% and TGC Industries ( TGE), up 3.0%.

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

TGC Industries ( TGE) is one of the companies that pushed the Energy industry higher today. TGC Industries was up $0.14 (3.0%) to $4.84 on heavy volume. Throughout the day, 166,902 shares of TGC Industries exchanged hands as compared to its average daily volume of 105,900 shares. The stock ranged in a price between $4.63-$4.96 after having opened the day at $4.77 as compared to the previous trading day's close of $4.70.

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 $104.3 million and is part of the basic materials sector. Shares are down 35.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate TGC Industries 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 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 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TGE has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 11.0%. 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).
  • 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.
  • Net operating cash flow has decreased to $3.18 million or 39.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: TGC Industries 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, GeoPark ( GPRK) was up $0.72 (7.4%) to $10.42 on heavy volume. Throughout the day, 73,208 shares of GeoPark exchanged hands as compared to its average daily volume of 39,200 shares. The stock ranged in a price between $9.73-$10.50 after having opened the day at $9.75 as compared to the previous trading day's close of $9.70.

GeoPark has a market cap of $49.0 billion and is part of the basic materials sector. Shares are unchanged year-to-date as of the close of trading on Thursday.

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

Highlights from TheStreet Ratings analysis on GPRK go as follows:

You can view the full analysis from the report here: GeoPark 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.

Saratoga Resources ( SARA) was another company that pushed the Energy industry higher today. Saratoga Resources was up $0.06 (3.7%) to $1.69 on heavy volume. Throughout the day, 83,164 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in a price between $1.62-$1.74 after having opened the day at $1.64 as compared to the previous trading day's close of $1.63.

Saratoga Resources, Inc., an independent oil and natural gas company, acquires, exploits, produces, and develops crude oil and natural gas properties in the United States. Saratoga Resources has a market cap of $50.1 million and is part of the basic materials sector. Shares are up 43.0% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Saratoga Resources a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Saratoga Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from TheStreet Ratings analysis on SARA 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 681.2% when compared to the same quarter one year ago, falling from -$1.06 million to -$8.29 million.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, SARATOGA RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SARATOGA RESOURCES INC is currently lower than what is desirable, coming in at 30.28%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -70.60% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$9.52 million or 214.88% 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 debt-to-equity ratio is very high at 6.13 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, SARA has managed to keep a strong quick ratio of 2.00, which demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: Saratoga Resources 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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