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 down 0.3% versus the S&P 500, which was up 0.2%. Laggards within the Energy industry included Sonde Resources ( SOQ), down 14.2%, Enerjex Resources ( ENRJ), down 5.0%, Lucas Energy ( LEI), down 13.9%, PrimeEnergy ( PNRG), down 3.5% and Mexco Energy ( MXC), down 6.2%.

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

Lucas Energy ( LEI) is one of the companies that pushed the Energy industry lower today. Lucas Energy was down $0.04 (13.9%) to $0.24 on heavy volume. Throughout the day, 379,614 shares of Lucas Energy exchanged hands as compared to its average daily volume of 158,300 shares. The stock ranged in price between $0.21-$0.29 after having opened the day at $0.28 as compared to the previous trading day's close of $0.28.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $11.7 million and is part of the basic materials sector. Shares are down 71.0% 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 67.53%, 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 1.9%. 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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At the close, Enerjex Resources ( ENRJ) was down $0.22 (5.0%) to $4.21 on light volume. Throughout the day, 3,391 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in price between $4.15-$4.30 after having opened the day at $4.15 as compared to the previous trading day's close of $4.43.

Enerjex Resources has a market cap of $33.0 million and is part of the basic materials sector. Shares are down 46.3% year-to-date as of the close of trading on Wednesday.

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Sonde Resources ( SOQ) was another company that pushed the Energy industry lower today. Sonde Resources was down $0.01 (14.2%) to $0.06 on average volume. Throughout the day, 45,578 shares of Sonde Resources exchanged hands as compared to its average daily volume of 53,500 shares. The stock ranged in price between $0.06-$0.07 after having opened the day at $0.07 as compared to the previous trading day's close of $0.07.

Sonde Resources has a market cap of $3.9 million and is part of the basic materials sector. Shares are down 89.9% year-to-date as of the close of trading on Wednesday.

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

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