3 Stocks Moving The Energy Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 188 points (1.1%) at 17,006 as of Tuesday, Oct. 28, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,601 issues advancing vs. 503 declining with 115 unchanged.

The Energy industry as a whole closed the day up 2.5% versus the S&P 500, which was up 1.2%. Top gainers within the Energy industry included New Concept Energy ( GBR), up 4.8%, FieldPoint Petroleum ( FPP), up 2.1%, Houston American Energy ( HUSA), up 1.8%, Forbes Energy Services ( FES), up 4.0% and Samson Oil & Gas ( SSN), up 3.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Samson Oil & Gas ( SSN) is one of the companies that pushed the Energy industry higher today. Samson Oil & Gas was up $0.01 (3.4%) to $0.30 on light volume. Throughout the day, 233,972 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 330,900 shares. The stock ranged in a price between $0.29-$0.31 after having opened the day at $0.29 as compared to the previous trading day's close of $0.29.

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 $41.1 million and is part of the basic materials sector. Shares are down 30.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Samson Oil & Gas a buy, no analysts rate it a sell, and none rate it a hold.

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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 40.00% to its most recent closing price of 0.30. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 21.0% when compared to the same quarter one year prior, going from -$1.91 million to -$1.51 million.
  • 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 -6.28%.

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.

At the close, Forbes Energy Services ( FES) was up $0.11 (4.0%) to $2.96 on light volume. Throughout the day, 7,028 shares of Forbes Energy Services exchanged hands as compared to its average daily volume of 32,100 shares. The stock ranged in a price between $2.89-$2.99 after having opened the day at $2.98 as compared to the previous trading day's close of $2.85.

Forbes Energy Services Ltd., an independent oilfield services contractor, provides a range of well site services for oil and natural gas drilling and producing companies to develop and enhance the production of oil and natural gas in the United States. Forbes Energy Services has a market cap of $65.4 million and is part of the basic materials sector. Shares are down 8.3% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Forbes Energy Services a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Forbes Energy Services as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from TheStreet Ratings analysis on FES 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 Energy Equipment & Services industry. The net income has significantly decreased by 92.8% when compared to the same quarter one year ago, falling from -$0.78 million to -$1.49 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, FORBES ENERGY SERVICES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for FORBES ENERGY SERVICES LTD is rather low; currently it is at 24.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.32% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $1.56 million or 73.02% 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 debt-to-equity ratio is very high at 2.21 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, FES has managed to keep a strong quick ratio of 2.40, which demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: Forbes Energy Services 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.

Houston American Energy ( HUSA) was another company that pushed the Energy industry higher today. Houston American Energy was up $0.00 (1.8%) to $0.24 on light volume. Throughout the day, 51,654 shares of Houston American Energy exchanged hands as compared to its average daily volume of 216,000 shares. The stock ranged in a price between $0.24-$0.26 after having opened the day at $0.24 as compared to the previous trading day's close of $0.24.

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 $13.0 million and is part of the basic materials sector. Shares are down 0.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Houston American Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Houston American Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

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.
  • HUSA has underperformed the S&P 500 Index, declining 10.35% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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.

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.

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.

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