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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 19 points (0.1%) at 17,098 as of Friday, Aug. 29, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,137 issues advancing vs. 890 declining with 157 unchanged.

The Energy industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.3%. Top gainers within the Energy industry included Sonde Resources ( SOQ), up 4.6%, WSP Holdings ( WH), up 5.9%, Ivanhoe Energy ( IVAN), up 55.4%, New Concept Energy ( GBR), up 4.2% and Camac Energy ( CAK), up 4.0%.

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

Ivanhoe Energy ( IVAN) is one of the companies that pushed the Energy industry higher today. Ivanhoe Energy was up $0.82 (55.4%) to $2.30 on heavy volume. Throughout the day, 12,847,361 shares of Ivanhoe Energy exchanged hands as compared to its average daily volume of 83,500 shares. The stock ranged in a price between $1.50-$3.15 after having opened the day at $1.52 as compared to the previous trading day's close of $1.48.

Ivanhoe Energy has a market cap of $24.2 million and is part of the basic materials sector. Shares are down 65.9% year-to-date as of the close of trading on Thursday.

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At the close, WSP Holdings ( WH) was up $0.04 (5.9%) to $0.72 on light volume. Throughout the day, 6,540 shares of WSP Holdings exchanged hands as compared to its average daily volume of 50,200 shares. The stock ranged in a price between $0.70-$0.72 after having opened the day at $0.70 as compared to the previous trading day's close of $0.68.

WSP Holdings Limited, together with its subsidiaries, manufactures and sells seamless oil country tubular goods. WSP Holdings has a market cap of $13.9 million and is part of the basic materials sector. Shares are down 75.1% 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.

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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

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Sonde Resources ( SOQ) was another company that pushed the Energy industry higher today. Sonde Resources was up $0.01 (4.6%) to $0.20 on light volume. Throughout the day, 14,055 shares of Sonde Resources exchanged hands as compared to its average daily volume of 38,100 shares. The stock ranged in a price between $0.17-$0.20 after having opened the day at $0.18 as compared to the previous trading day's close of $0.19.

Sonde Resources has a market cap of $10.7 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.

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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