3 Energy Stocks Moving The Industry Upward

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 three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,976 as of Monday, July 28, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,373 issues advancing vs. 1,597 declining with 179 unchanged.

The Energy industry as a whole closed the day down 0.8% versus the S&P 500, which was unchanged. Top gainers within the Energy industry included Lilis Energy ( LLEX), up 4.4%, Houston American Energy ( HUSA), up 3.0%, Mexco Energy ( MXC), up 1.7%, Dejour Energy ( DEJ), up 8.3% and Sinopec Shanghai Petrochemical ( SHI), up 1.6%.

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

Sinopec Shanghai Petrochemical ( SHI) is one of the companies that pushed the Energy industry higher today. Sinopec Shanghai Petrochemical was up $0.49 (1.6%) to $32.09 on light volume. Throughout the day, 7,200 shares of Sinopec Shanghai Petrochemical exchanged hands as compared to its average daily volume of 15,700 shares. The stock ranged in a price between $31.90-$32.10 after having opened the day at $31.98 as compared to the previous trading day's close of $31.60.

Sinopec Shanghai Petrochemical has a market cap of $3.4 billion and is part of the basic materials sector. Shares are up 10.7% year-to-date as of the close of trading on Friday.

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 SHI go as follows:

You can view the full analysis from the report here: Sinopec Shanghai Petrochemical 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, Dejour Energy ( DEJ) was up $0.02 (8.3%) to $0.28 on heavy volume. Throughout the day, 3,390,317 shares of Dejour Energy exchanged hands as compared to its average daily volume of 1,028,900 shares. The stock ranged in a price between $0.25-$0.28 after having opened the day at $0.25 as compared to the previous trading day's close of $0.26.

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 $41.1 million and is part of the basic materials sector. Shares are up 120.2% year-to-date as of the close of trading on Friday. 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.

Houston American Energy ( HUSA) was another company that pushed the Energy industry higher today. Houston American Energy was up $0.01 (3.0%) to $0.35 on light volume. Throughout the day, 52,400 shares of Houston American Energy exchanged hands as compared to its average daily volume of 146,700 shares. The stock ranged in a price between $0.33-$0.36 after having opened the day at $0.35 as compared to the previous trading day's close of $0.34.

Houston American Energy Corp., an independent energy company, explores for, develops, and produces natural gas, crude oil, and condensate from properties located principally in the Gulf Coast area of the United States and South America. Houston American Energy has a market cap of $18.3 million and is part of the basic materials sector. Shares are up 36.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Houston American Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Houston American Energy as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on HUSA go as follows:

  • 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, HOUSTON AMERN 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.
  • The gross profit margin for HOUSTON AMERN ENERGY CORP is currently very high, coming in at 74.53%. 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 -504.71% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.70 million or 19.70% when compared to the same quarter last year. In addition, HOUSTON AMERN ENERGY CORP has also modestly surpassed the industry average cash flow growth rate of 16.72%.
  • HUSA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 35.70, which clearly demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: Houston American 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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