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The Energy industry as a whole closed the day up 0.2% versus the S&P 500, which was unchanged. Laggards within the Energy industry included Barnwell Industries ( BRN), down 2.5%, New Concept Energy ( GBR), down 1.8%, PostRock Energy ( PSTR), down 8.2%, Enerjex Resources ( ENRJ), down 7.0% and Houston American Energy ( HUSA), down 2.2%.

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

Houston American Energy ( HUSA) is one of the companies that pushed the Energy industry lower today. Houston American Energy was down $0.00 (2.2%) to $0.22 on light volume. Throughout the day, 30,419 shares of Houston American Energy exchanged hands as compared to its average daily volume of 141,500 shares. The stock ranged in price between $0.22-$0.24 after having opened the day at $0.23 as compared to the previous trading day's close of $0.23.

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 $12.4 million and is part of the basic materials sector. Shares are down 5.3% year-to-date as of the close of trading on Monday.

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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 7.70% 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

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At the close, Enerjex Resources ( ENRJ) was down $0.31 (7.0%) to $4.10 on light volume. Throughout the day, 3,680 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in price between $4.10-$4.31 after having opened the day at $4.31 as compared to the previous trading day's close of $4.41.

Enerjex Resources has a market cap of $34.2 million and is part of the basic materials sector. Shares are down 45.7% year-to-date as of the close of trading on Monday.

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PostRock Energy ( PSTR) was another company that pushed the Energy industry lower today. PostRock Energy was down $0.06 (8.2%) to $0.71 on light volume. Throughout the day, 17,264 shares of PostRock Energy exchanged hands as compared to its average daily volume of 27,300 shares. The stock ranged in price between $0.70-$0.72 after having opened the day at $0.71 as compared to the previous trading day's close of $0.77.

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 $23.7 million and is part of the basic materials sector. Shares are down 33.6% year-to-date as of the close of trading on Monday.

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

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Highlights from TheStreet Ratings analysis on PSTR go as follows:

  • The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, PSTR has a quick ratio of 0.56, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has decreased to $5.71 million or 25.62% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • PSTR'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 51.36%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • 49.25% is the gross profit margin for POSTROCK ENERGY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.15% significantly outperformed against the industry average.

You can view the full analysis from the report here: PostRock Energy Ratings Report

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