3 Energy Stocks Pushing Industry Growth

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 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.

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 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

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, Samson Oil & Gas ( SSN) was up $0.01 (2.2%) to $0.40 on light volume. Throughout the day, 179,415 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 704,300 shares. The stock ranged in a price between $0.39-$0.41 after having opened the day at $0.39 as compared to the previous trading day's close of $0.39.

Samson Oil & Gas Limited, an independent energy company, is engaged in the acquisition, exploration, exploitation, and development of oil and natural gas properties in the United States. The company produces crude oil, natural gas, and natural gas liquids. Samson Oil & Gas has a market cap of $57.3 million and is part of the basic materials sector. Shares are down 5.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Samson Oil & Gas 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 Samson Oil & Gas as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SSN go as follows:

  • Net operating cash flow has significantly decreased to -$1.15 million or 136.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • SSN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.77%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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, SAMSON OIL & GAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SAMSON OIL & GAS LTD is rather high; currently it is at 61.46%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -13.05% is in-line with the industry average.
  • SAMSON OIL & GAS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, SAMSON OIL & GAS LTD continued to lose money by earning -$0.12 versus -$0.37 in the prior year.

You can view the full analysis from the report here: Samson Oil & Gas 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 $0.00 (2.2%) to $0.24 on light volume. Throughout the day, 106,615 shares of Houston American Energy exchanged hands as compared to its average daily volume of 221,600 shares. The stock ranged in a price between $0.22-$0.25 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

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 $12.5 million and is part of the basic materials sector. Shares are down 8.0% year-to-date as of the close of trading on Wednesday. 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. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on HUSA go as follows:

  • HUSA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.31%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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.
  • 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. The firm also exceeded the industry average cash flow growth rate of -7.19%.
  • 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.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists