3 Stocks Pushing The Energy Industry Lower

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The Energy industry as a whole closed the day down 1.2% versus the S&P 500, which was unchanged. Laggards within the Energy industry included PostRock Energy ( PSTR), down 16.9%, Houston American Energy ( HUSA), down 7.6%, Tengasco ( TGC), down 3.5%, Forbes Energy Services ( FES), down 5.7% and Yuma Energy ( YUMA), down 5.1%.

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

Forbes Energy Services ( FES) is one of the companies that pushed the Energy industry lower today. Forbes Energy Services was down $0.14 (5.7%) to $2.34 on heavy volume. Throughout the day, 96,916 shares of Forbes Energy Services exchanged hands as compared to its average daily volume of 28,000 shares. The stock ranged in price between $2.33-$2.51 after having opened the day at $2.51 as compared to the previous trading day's close of $2.48.

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 $56.8 million and is part of the basic materials sector. Shares are down 24.2% 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

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At the close, Houston American Energy ( HUSA) was down $0.02 (7.6%) to $0.21 on light volume. Throughout the day, 40,549 shares of Houston American Energy exchanged hands as compared to its average daily volume of 141,600 shares. The stock ranged in price between $0.21-$0.22 after having opened the day at $0.22 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 $11.4 million and is part of the basic materials sector. Shares are down 12.4% 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'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 30.00%, 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, 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.

PostRock Energy ( PSTR) was another company that pushed the Energy industry lower today. PostRock Energy was down $0.12 (16.9%) to $0.59 on average volume. Throughout the day, 37,772 shares of PostRock Energy exchanged hands as compared to its average daily volume of 30,300 shares. The stock ranged in price between $0.57-$0.71 after having opened the day at $0.68 as compared to the previous trading day's close of $0.71.

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 $45.8 million and is part of the basic materials sector. Shares are down 37.5% 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.

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

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 53.34%, 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.

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