3 Stocks Boosting 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 129.91 points (-0.8%) at 16,954 as of Friday, July 25, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 978 issues advancing vs. 1,990 declining with 153 unchanged.

The Energy industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.6%. Top gainers within the Energy industry included Sonde Resources ( SOQ), up 1.6%, WSP Holdings ( WH), up 9.2%, SAExploration Holdings ( SAEX), up 1.7%, Dejour Energy ( DEJ), up 2.0% and GeoPark ( GPRK), up 3.1%.

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

Dejour Energy ( DEJ) is one of the companies that pushed the Energy industry higher today. Dejour Energy was up $0.00 (2.0%) to $0.26 on heavy volume. Throughout the day, 1,627,467 shares of Dejour Energy exchanged hands as compared to its average daily volume of 1,015,600 shares. The stock ranged in a price between $0.25-$0.26 after having opened the day at $0.26 as compared to the previous trading day's close of $0.25.

Dejour Energy Inc. is engaged in acquiring, exploring, and developing energy projects with a focus on oil and gas exploration in Canada and the United States. Dejour Energy has a market cap of $39.8 million and is part of the basic materials sector. Shares are up 107.7% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Dejour Energy 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 Dejour Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally high debt management risk.

Highlights from TheStreet Ratings analysis on DEJ 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 146.4% when compared to the same quarter one year ago, falling from -$1.21 million to -$2.98 million.
  • DEJ's debt-to-equity ratio of 0.71 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.15 is very low and demonstrates very weak liquidity.
  • 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, DEJOUR ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • DEJOUR ENERGY INC 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 not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, DEJOUR ENERGY INC continued to lose money by earning -$0.03 versus -$0.07 in the prior year.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with 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.

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

At the close, WSP Holdings ( WH) was up $0.07 (9.2%) to $0.82 on average volume. Throughout the day, 45,787 shares of WSP Holdings exchanged hands as compared to its average daily volume of 59,400 shares. The stock ranged in a price between $0.74-$0.88 after having opened the day at $0.79 as compared to the previous trading day's close of $0.75.

WSP Holdings Limited, together with its subsidiaries, manufactures and sells seamless oil country tubular goods. WSP Holdings has a market cap of $15.1 million and is part of the basic materials sector. Shares are down 72.5% year-to-date as of the close of trading on Thursday. 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.

Sonde Resources ( SOQ) was another company that pushed the Energy industry higher today. Sonde Resources was up $0.01 (1.6%) to $0.34 on light volume. Throughout the day, 5,833 shares of Sonde Resources exchanged hands as compared to its average daily volume of 35,400 shares. The stock ranged in a price between $0.33-$0.34 after having opened the day at $0.33 as compared to the previous trading day's close of $0.33.

Sonde Resources has a market cap of $18.5 million and is part of the basic materials sector. Shares are down 52.2% year-to-date as of the close of trading on Thursday.

Highlights from TheStreet Ratings analysis on SOQ go as follows:

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

More from Markets

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

NYSE Trader Expects Blowout Earnings From Alphabet, Amazon and Facebook

Don't Panic! The Risk of a Recession This Year Is Low

Don't Panic! The Risk of a Recession This Year Is Low

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

State Street Gets Pummeled on Software Deal; Pizza Wars Are Raging -- ICYMI

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'

Schlumberger Stock Dips as Investors Ignore Start of 'Earnings Liftoff'