3 Stocks Pushing 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 55.93 points (-0.3%) at 16,507 as of Friday, Aug. 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 2,012 declining with 122 unchanged.

The Energy industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.1%. Top gainers within the Energy industry included Houston American Energy ( HUSA), up 10.1%, Pyramid Oil ( PDO), up 3.9%, Andatee China Marine Fuel Services ( AMCF), up 3.0%, Camac Energy ( CAK), up 1.7% and Whiting USA Trust I ( WHX), up 3.5%.

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

Whiting USA Trust I ( WHX) is one of the companies that pushed the Energy industry higher today. Whiting USA Trust I was up $0.09 (3.5%) to $2.64 on light volume. Throughout the day, 212,939 shares of Whiting USA Trust I exchanged hands as compared to its average daily volume of 302,300 shares. The stock ranged in a price between $2.49-$2.68 after having opened the day at $2.50 as compared to the previous trading day's close of $2.55.

Whiting USA Trust I has a market cap of $36.5 million and is part of the basic materials sector. Shares are down 51.2% 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 WHX go as follows:

You can view the full analysis from the report here: Whiting USA Trust I 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, Andatee China Marine Fuel Services ( AMCF) was up $0.05 (3.0%) to $1.73 on light volume. Throughout the day, 2,252 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 48,400 shares. The stock ranged in a price between $1.69-$1.73 after having opened the day at $1.69 as compared to the previous trading day's close of $1.68.

Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. Andatee China Marine Fuel Services has a market cap of $18.2 million and is part of the basic materials sector. Shares are down 1.2% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Andatee China Marine Fuel Services 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 Andatee China Marine Fuel Services 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 AMCF go as follows:

  • The debt-to-equity ratio is very high at 4.12 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, AMCF has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity 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 Oil, Gas & Consumable Fuels industry and the overall market, ANDATEE CHINA MARINE FUEL's return on equity significantly trails that of both the industry average and the S&P 500.
  • ANDATEE CHINA MARINE FUEL 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, ANDATEE CHINA MARINE FUEL swung to a loss, reporting -$0.11 versus $0.17 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1121.5% when compared to the same quarter one year ago, falling from $0.34 million to -$3.42 million.
  • The gross profit margin for ANDATEE CHINA MARINE FUEL is currently extremely low, coming in at 8.50%. Regardless of AMCF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AMCF's net profit margin of -8.15% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Andatee China Marine Fuel 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.

Houston American Energy ( HUSA) was another company that pushed the Energy industry higher today. Houston American Energy was up $0.03 (10.1%) to $0.35 on heavy volume. Throughout the day, 396,410 shares of Houston American Energy exchanged hands as compared to its average daily volume of 146,400 shares. The stock ranged in a price between $0.29-$0.36 after having opened the day at $0.31 as compared to the previous trading day's close of $0.32.

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 $16.4 million and is part of the basic materials sector. Shares are up 27.1% year-to-date as of the close of trading on Thursday. 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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