3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.8%. Laggards within the Energy industry included Pyramid Oil ( PDO), down 5.8%, Lucas Energy ( LEI), down 12.3%, Samson Oil & Gas ( SSN), down 2.5%, KiOR ( KIOR), down 6.2% and Forbes Energy Services ( FES), down 1.8%.

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

KiOR ( KIOR) is one of the companies that pushed the Energy industry lower today. KiOR was down $0.01 (6.2%) to $0.12 on light volume. Throughout the day, 489,095 shares of KiOR exchanged hands as compared to its average daily volume of 1,343,500 shares. The stock ranged in price between $0.12-$0.14 after having opened the day at $0.12 as compared to the previous trading day's close of $0.13.

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 $9.1 million and is part of the basic materials sector. Shares are down 92.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate KiOR a buy, no analysts rate it a sell, and 1 rates it a hold.

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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 87.78%, 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.
  • KIOR, with its decline in revenue, slightly underperformed the industry average of 3.1%. 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 (-$0.68 versus -$3.20).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Oil, Gas & Consumable Fuels industry average. 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 -5.24%.

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

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At the close, Samson Oil & Gas ( SSN) was down $0.01 (2.5%) to $0.32 on average volume. Throughout the day, 272,933 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 350,200 shares. The stock ranged in price between $0.32-$0.33 after having opened the day at $0.33 as compared to the previous trading day's close of $0.33.

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 $46.3 million and is part of the basic materials sector. Shares are down 21.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Samson Oil & Gas as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on SSN go as follows:

  • 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.
  • Compared to where it was trading one year ago, SSN is down 32.70% to its most recent closing price of 0.35. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
  • The gross profit margin for SAMSON OIL & GAS LTD is rather high; currently it is at 65.58%. 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 -29.73% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 817.54% to $1.23 million when compared to the same quarter last year. In addition, SAMSON OIL & GAS LTD has also vastly surpassed the industry average cash flow growth rate of -5.24%.
  • SSN's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SSN has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.

You can view the full analysis from the report here: Samson Oil & Gas Ratings Report

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Lucas Energy ( LEI) was another company that pushed the Energy industry lower today. Lucas Energy was down $0.06 (12.3%) to $0.43 on heavy volume. Throughout the day, 201,203 shares of Lucas Energy exchanged hands as compared to its average daily volume of 123,700 shares. The stock ranged in price between $0.41-$0.49 after having opened the day at $0.49 as compared to the previous trading day's close of $0.49.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $17.0 million and is part of the basic materials sector. Shares are down 47.3% year-to-date as of the close of trading on Tuesday.

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.

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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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