3 Energy Stocks Pushing Industry Growth

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 55 points (0.3%) at 16,707 as of Thursday, Aug. 14, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,989 issues advancing vs. 996 declining with 174 unchanged.

The Energy industry as a whole closed the day down 0.7% versus the S&P 500, which was up 0.4%. Top gainers within the Energy industry included Tengasco ( TGC), up 2.0%, Houston American Energy ( HUSA), up 2.2%, Samson Oil & Gas ( SSN), up 2.2%, Star Gas Partners ( SGU), up 1.7% and Superior Drilling Products ( SDPI), up 4.1%.

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

Star Gas Partners ( SGU) is one of the companies that pushed the Energy industry higher today. Star Gas Partners was up $0.10 (1.7%) to $6.11 on light volume. Throughout the day, 29,904 shares of Star Gas Partners exchanged hands as compared to its average daily volume of 72,100 shares. The stock ranged in a price between $5.99-$6.14 after having opened the day at $6.02 as compared to the previous trading day's close of $6.01.

Star Gas Partners, L.P., through its subsidiary, Petro Holdings, Inc., operates as a home heating oil and propane distributor and services provider to residential and commercial customers in the United States. Star Gas Partners has a market cap of $344.2 million and is part of the basic materials sector. Shares are up 14.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Star Gas Partners a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Star Gas Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on SGU go as follows:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 24.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Gas Utilities industry and the overall market, STAR GAS PARTNERS -LP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $126.95 million or 15.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.24%.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.

You can view the full analysis from the report here: Star Gas Partners Ratings Report

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