3 Stocks Driving 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 25.94 points (-0.2%) at 17,111 as of Monday, Sept. 8, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,156 issues advancing vs. 1,888 declining with 146 unchanged.

The Energy industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.3%. Top gainers within the Energy industry included Lilis Energy ( LLEX), up 1.9%, Houston American Energy ( HUSA), up 4.2%, Escalera Resources ( ESCR), up 2.1%, KiOR ( KIOR), up 20.8% and Lucas Energy ( LEI), up 3.4%.

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

Lucas Energy ( LEI) is one of the companies that pushed the Energy industry higher today. Lucas Energy was up $0.02 (3.4%) to $0.62 on average volume. Throughout the day, 147,582 shares of Lucas Energy exchanged hands as compared to its average daily volume of 136,500 shares. The stock ranged in a price between $0.59-$0.67 after having opened the day at $0.62 as compared to the previous trading day's close of $0.60.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $20.9 million and is part of the services sector. Shares are down 37.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Lucas 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 Lucas Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LEI 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 32.7% when compared to the same quarter one year ago, falling from -$0.95 million to -$1.25 million.
  • LEI'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 51.05%, which is also worse than the performance of the S&P 500 Index. 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 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 Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 44.06% is the gross profit margin for LUCAS ENERGY INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LEI's net profit margin of -133.12% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 36.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

You can view the full analysis from the report here: Lucas 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.

At the close, KiOR ( KIOR) was up $0.02 (20.8%) to $0.11 on average volume. Throughout the day, 932,626 shares of KiOR exchanged hands as compared to its average daily volume of 777,300 shares. The stock ranged in a price between $0.09-$0.11 after having opened the day at $0.11 as compared to the previous trading day's close of $0.09.

KiOR, Inc., a renewable fuels company, produces and sells cellulosic gasoline and diesel from lignocellulosic biomass using its proprietary biomass-to-cellulosic fuel technology platform. KiOR has a market cap of $5.9 million and is part of the services sector. Shares are down 94.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate KiOR a buy, no analysts rate it a sell, and 1 rates 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 KiOR 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 KIOR go as follows:

  • KIOR'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 95.18%, 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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 3.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • KIOR INC has improved earnings per share by 38.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KIOR INC reported poor results of -$3.20 versus -$0.92 in the prior year. This year, the market expects an improvement in earnings (-$0.84 versus -$3.20).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 36.5% when compared to the same quarter one year prior, rising from -$38.49 million to -$24.44 million.
  • Net operating cash flow has increased to -$13.27 million or 43.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.22%.

You can view the full analysis from the report here: KiOR 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 (4.2%) to $0.25 on light volume. Throughout the day, 146,521 shares of Houston American Energy exchanged hands as compared to its average daily volume of 210,300 shares. The stock ranged in a price between $0.24-$0.28 after having opened the day at $0.24 as compared to the previous trading day's close of $0.24.

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 services sector. Shares are down 4.0% 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 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 HUSA go as follows:

  • Net operating cash flow has significantly decreased to -$0.42 million or 135.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • HUSA has underperformed the S&P 500 Index, declining 21.57% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 rather high; currently it is at 67.16%. 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 -1020.89% is in-line with the industry average.
  • 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 53.71, 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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