3 Stocks Raising The Energy Industry Higher

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.

One 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 down 25.91 points (-0.1%) at 17,627 as of Friday, Nov. 14, 2014, 1:25 PM ET. The NYSE advances/declines ratio sits at 1,592 issues advancing vs. 1,405 declining with 178 unchanged.

The Energy industry as a whole closed the day up 1.3% versus the S&P 500, which was unchanged. Top gainers within the Energy industry included PostRock Energy ( PSTR), up 4.3%, Enerjex Resources ( ENRJ), up 2.8%, PrimeEnergy ( PNRG), up 2.1%, Samson Oil & Gas ( SSN), up 6.3% and Yuma Energy ( YUMA), up 3.5%.

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 $0.02 (6.3%) to $0.30 on light volume. Throughout the day, 214,021 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 316,500 shares. The stock ranged in a price between $0.29-$0.32 after having opened the day at $0.30 as compared to the previous trading day's close of $0.28.

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 $42.6 million and is part of the basic materials sector. Shares are down 27.7% year-to-date as of the close of trading on Thursday. 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 43.75% to its most recent closing price of 0.27. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
  • 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 -2.53%.
  • SSN's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SSN has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.

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, Enerjex Resources ( ENRJ) was up $0.12 (2.8%) to $4.22 on light volume. Throughout the day, 2,387 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in a price between $4.11-$4.30 after having opened the day at $4.11 as compared to the previous trading day's close of $4.10.

Enerjex Resources has a market cap of $31.3 million and is part of the basic materials sector. Shares are down 50.3% year-to-date as of the close of trading on Thursday.

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 $0.03 (4.3%) to $0.73 on light volume. Throughout the day, 4,481 shares of PostRock Energy exchanged hands as compared to its average daily volume of 26,900 shares. The stock ranged in a price between $0.70-$0.73 after having opened the day at $0.71 as compared to the previous trading day's close of $0.70.

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 $44.4 million and is part of the basic materials sector. Shares are down 39.4% year-to-date as of the close of trading on Thursday. 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 generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself.

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

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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