3 Energy Stocks Pushing Industry Growth

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.

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 80 points (0.5%) at 17,464 as of Wednesday, Nov. 5, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,610 issues advancing vs. 1,406 declining with 158 unchanged.

The Energy industry as a whole closed the day up 1.7% versus the S&P 500, which was up 0.5%. Top gainers within the Energy industry included PostRock Energy ( PSTR), up 28.6%, Saratoga Resources ( SARA), up 2.7%, PrimeEnergy ( PNRG), up 15.3%, Mexco Energy ( MXC), up 3.1% and TGC Industries ( TGE), up 3.0%.

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

TGC Industries ( TGE) is one of the companies that pushed the Energy industry higher today. TGC Industries was up $0.09 (3.0%) to $3.15 on light volume. Throughout the day, 19,383 shares of TGC Industries exchanged hands as compared to its average daily volume of 73,700 shares. The stock ranged in a price between $3.05-$3.17 after having opened the day at $3.05 as compared to the previous trading day's close of $3.06.

TGC Industries, Inc. provides geophysical services to companies in the oil and gas industry in the United States and Canada. TGC Industries has a market cap of $70.3 million and is part of the basic materials sector. Shares are down 58.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate TGC Industries a buy, no analysts rate it a sell, and none rate it a hold.

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 TGC Industries 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on TGE go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry average. The net income has decreased by 1.5% when compared to the same quarter one year ago, dropping from -$3.95 million to -$4.01 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 Energy Equipment & Services industry and the overall market, TGC INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TGC INDUSTRIES INC is currently extremely low, coming in at 3.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.36% is significantly below that of the industry average.
  • TGE'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 57.56%, which is also worse than the performance of the S&P 500 Index. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • TGC INDUSTRIES INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TGC INDUSTRIES INC swung to a loss, reporting -$0.28 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($0.04 versus -$0.28).

You can view the full analysis from the report here: TGC Industries 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, Saratoga Resources ( SARA) was up $0.02 (2.7%) to $0.62 on light volume. Throughout the day, 32,953 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 84,500 shares. The stock ranged in a price between $0.58-$0.68 after having opened the day at $0.58 as compared to the previous trading day's close of $0.60.

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 $21.1 million and is part of the basic materials sector. Shares are down 40.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Saratoga Resources a buy, no analysts rate it a sell, and none rate it a hold.

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 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.

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 71.20%, 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.

PostRock Energy ( PSTR) was another company that pushed the Energy industry higher today. PostRock Energy was up $0.16 (28.6%) to $0.72 on average volume. Throughout the day, 35,928 shares of PostRock Energy exchanged hands as compared to its average daily volume of 24,200 shares. The stock ranged in a price between $0.57-$0.72 after having opened the day at $0.61 as compared to the previous trading day's close of $0.56.

PostRock Energy Corporation, an independent oil and gas company, is engaged in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. PostRock Energy has a market cap of $22.8 million and is part of the basic materials sector. Shares are down 36.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate PostRock Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates PostRock Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PSTR 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 187.0% when compared to the same quarter one year ago, falling from $6.88 million to -$5.99 million.
  • Currently the debt-to-equity ratio of 1.62 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 51.66%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 276.92% 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.
  • 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, POSTROCK ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • POSTROCK ENERGY CORP 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. 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, POSTROCK ENERGY CORP continued to lose money by earning -$0.93 versus -$3.99 in the prior year. This year, the market expects an improvement in earnings (-$0.60 versus -$0.93).

You can view the full analysis from the report here: PostRock 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.

More from Markets

Aluminum Prices Plummet as U.S. Is Open to Easing Sanctions on Russia's Rusal

Aluminum Prices Plummet as U.S. Is Open to Easing Sanctions on Russia's Rusal

Stocks Rise as Bond Yields Inch Closer to 3% Threshold

Stocks Rise as Bond Yields Inch Closer to 3% Threshold

Akorn's Stock Crashes as Germany's Fresenius Ends Takeover Amid Data Allegations

Akorn's Stock Crashes as Germany's Fresenius Ends Takeover Amid Data Allegations

Trump to Blame for Oil's Recent Surge, Not OPEC

Trump to Blame for Oil's Recent Surge, Not OPEC

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday