3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.6%. Laggards within the Energy industry included Tengasco ( TGC), down 2.1%, Pyramid Oil ( PDO), down 2.8%, FieldPoint Petroleum ( FPP), down 2.5%, Lucas Energy ( LEI), down 3.7% and Houston American Energy ( HUSA), down 8.5%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Statoil ASA ( STO) is one of the companies that pushed the Energy industry lower today. Statoil ASA was down $0.70 (2.5%) to $27.70 on heavy volume. Throughout the day, 2,458,440 shares of Statoil ASA exchanged hands as compared to its average daily volume of 1,352,100 shares. The stock ranged in price between $27.61-$27.94 after having opened the day at $27.84 as compared to the previous trading day's close of $28.40.

Statoil ASA, an integrated energy company, is engaged in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. Statoil ASA has a market cap of $90.6 billion and is part of the basic materials sector. Shares are up 17.7% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Statoil ASA a buy, 1 analyst rates it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Statoil ASA as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on STO go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 175.1% when compared to the same quarter one year prior, rising from $678.28 million to $1,866.09 million.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 153.19% to $2,739.71 million when compared to the same quarter last year. In addition, STATOIL ASA has also vastly surpassed the industry average cash flow growth rate of -5.24%.

You can view the full analysis from the report here: Statoil ASA Ratings Report

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At the close, Houston American Energy ( HUSA) was down $0.03 (8.5%) to $0.31 on average volume. Throughout the day, 193,989 shares of Houston American Energy exchanged hands as compared to its average daily volume of 206,000 shares. The stock ranged in price between $0.31-$0.36 after having opened the day at $0.36 as compared to the previous trading day's close of $0.34.

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 $19.3 million and is part of the basic materials sector. Shares are up 36.0% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Houston American Energy as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

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.
  • 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.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. 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.

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.

Lucas Energy ( LEI) was another company that pushed the Energy industry lower today. Lucas Energy was down $0.02 (3.7%) to $0.49 on heavy volume. Throughout the day, 218,130 shares of Lucas Energy exchanged hands as compared to its average daily volume of 119,800 shares. The stock ranged in price between $0.47-$0.52 after having opened the day at $0.51 as compared to the previous trading day's close of $0.51.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $18.7 million and is part of the basic materials sector. Shares are down 42.0% year-to-date as of the close of trading on Monday.

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.

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 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 50.39%, 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 3.1%. 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.

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