3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day down 1.7% versus the S&P 500, which was down 1.6%. Laggards within the Energy industry included Sonde Resources ( SOQ), down 13.3%, Escalera Resources ( ESCR), down 1.5%, New Concept Energy ( GBR), down 3.0%, FieldPoint Petroleum ( FPP), down 3.6% and Lucas Energy ( LEI), down 7.0%.

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

Imperial Oil ( IMO) is one of the companies that pushed the Energy industry lower today. Imperial Oil was down $1.17 (2.4%) to $47.01 on average volume. Throughout the day, 184,485 shares of Imperial Oil exchanged hands as compared to its average daily volume of 172,500 shares. The stock ranged in price between $46.93-$47.87 after having opened the day at $47.84 as compared to the previous trading day's close of $48.18.

Imperial Oil Limited is engaged in the exploration for, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. Imperial Oil has a market cap of $41.0 billion and is part of the basic materials sector. Shares are up 8.9% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Imperial Oil a buy, 1 analyst rates it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Imperial Oil as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, attractive valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on IMO go as follows:

  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 19.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 276.8% when compared to the same quarter one year prior, rising from $327.00 million to $1,232.00 million.
  • Net operating cash flow has increased to $999.00 million or 35.36% 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: Imperial Oil Ratings Report

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At the close, Lucas Energy ( LEI) was down $0.03 (7.0%) to $0.40 on heavy volume. Throughout the day, 273,644 shares of Lucas Energy exchanged hands as compared to its average daily volume of 125,300 shares. The stock ranged in price between $0.39-$0.45 after having opened the day at $0.45 as compared to the previous trading day's close of $0.43.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $16.4 million and is part of the basic materials sector. Shares are down 55.4% year-to-date as of the close of trading on Wednesday.

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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 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

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Sonde Resources ( SOQ) was another company that pushed the Energy industry lower today. Sonde Resources was down $0.02 (13.3%) to $0.13 on light volume. Throughout the day, 9,635 shares of Sonde Resources exchanged hands as compared to its average daily volume of 36,100 shares. The stock ranged in price between $0.13-$0.14 after having opened the day at $0.14 as compared to the previous trading day's close of $0.15.

Sonde Resources has a market cap of $7.8 million and is part of the basic materials sector. Shares are down 78.3% year-to-date as of the close of trading on Wednesday.

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