3 Stocks Pushing The Energy Industry Lower

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.

The Energy industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.3%. Laggards within the Energy industry included Tengasco ( TGC), down 2.1%, Saratoga Resources ( SARA), down 3.2%, Samson Oil & Gas ( SSN), down 2.6%, ZaZa Energy ( ZAZA), down 7.8% and GeoPark ( GPRK), down 2.2%.

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

ZaZa Energy ( ZAZA) is one of the companies that pushed the Energy industry lower today. ZaZa Energy was down $0.30 (7.8%) to $3.57 on average volume. Throughout the day, 51,347 shares of ZaZa Energy exchanged hands as compared to its average daily volume of 37,200 shares. The stock ranged in price between $3.50-$3.94 after having opened the day at $3.92 as compared to the previous trading day's close of $3.87.

ZaZa Energy has a market cap of $48.5 million and is part of the basic materials sector. Shares are down 59.5% year-to-date as of the close of trading on Friday.

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, Samson Oil & Gas ( SSN) was down $0.01 (2.6%) to $0.32 on light volume. Throughout the day, 165,109 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 346,300 shares. The stock ranged in price between $0.31-$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, acquires, explores for, exploits, and develops 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 $45.9 million and is part of the basic materials sector. Shares are down 20.8% year-to-date as of the close of trading on Friday.

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 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 34.70% to its most recent closing price of 0.32. 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 -5.18%.
  • 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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Saratoga Resources ( SARA) was another company that pushed the Energy industry lower today. Saratoga Resources was down $0.04 (3.2%) to $1.21 on light volume. Throughout the day, 32,426 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 80,700 shares. The stock ranged in price between $1.21-$1.27 after having opened the day at $1.23 as compared to the previous trading day's close of $1.25.

Saratoga Resources, Inc., an independent oil and natural gas company, acquires, exploits, produces, and develops crude oil and natural gas properties in the United States. Saratoga Resources has a market cap of $38.1 million and is part of the basic materials sector. Shares are up 7.9% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Saratoga Resources 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, disappointing return on equity, weak operating cash flow and generally high debt management risk.

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 SARA go as follows:

  • SARATOGA RESOURCES INC 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 reported a trend of declining earnings per share over the past two years. During the past fiscal year, SARATOGA RESOURCES INC reported poor results of -$0.85 versus -$0.13 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 187.5% when compared to the same quarter one year ago, falling from -$2.31 million to -$6.65 million.
  • 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 Oil, Gas & Consumable Fuels industry and the overall market, SARATOGA RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $2.23 million or 79.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 50.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier 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.

You can view the full analysis from the report here: Saratoga Resources 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.

More from Markets

Here's What Wall Street Is Watching Monday as Stocks Nosedive

Here's What Wall Street Is Watching Monday as Stocks Nosedive

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

Jim Cramer: Reports of Attempted Trade Truce With China Are False

Jim Cramer: Reports of Attempted Trade Truce With China Are False

5 Cheap Stocks Primed for a Summer Rally

5 Cheap Stocks Primed for a Summer Rally