3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day down 1.5% versus the S&P 500, which was down 0.3%. Laggards within the Energy industry included Barnwell Industries ( BRN), down 2.8%, Tengasco ( TGC), down 2.1%, PrimeEnergy ( PNRG), down 1.9%, Lucas Energy ( LEI), down 4.8% and Houston American Energy ( HUSA), down 1.6%.

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 $0.78 (1.6%) to $47.22 on average volume. Throughout the day, 233,453 shares of Imperial Oil exchanged hands as compared to its average daily volume of 172,200 shares. The stock ranged in price between $46.85-$47.84 after having opened the day at $47.84 as compared to the previous trading day's close of $48.00.

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 $40.5 billion and is part of the basic materials sector. Shares are up 8.5% year-to-date as of the close of trading on Monday. 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, attractive valuation levels, good cash flow from operations, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. 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 3.0%. 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.
  • 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 -5.18%.
  • IMO's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.36 is very weak and demonstrates a lack of ability to pay short-term obligations.

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

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