3 Energy Stocks Nudging The 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 106.38 points (-0.6%) at 17,321 as of Thursday, Jan. 15, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,098 issues advancing vs. 2,009 declining with 122 unchanged.

The Energy industry as a whole closed the day down 2.0% versus the S&P 500, which was down 0.9%. Top gainers within the Energy industry included New Concept Energy ( GBR), up 6.8%, Dejour Energy ( DEJ), up 8.7%, Magellan Petroleum ( MPET), up 1.9%, North American Energy Partners ( NOA), up 2.0% and Star Gas Partners ( SGU), up 2.2%.

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

North American Energy Partners ( NOA) is one of the companies that pushed the Energy industry higher today. North American Energy Partners was up $0.06 (2.0%) to $3.02 on heavy volume. Throughout the day, 177,818 shares of North American Energy Partners exchanged hands as compared to its average daily volume of 84,500 shares. The stock ranged in a price between $2.99-$3.09 after having opened the day at $3.03 as compared to the previous trading day's close of $2.96.

North American Energy Partners has a market cap of $101.3 million and is part of the basic materials sector. Shares are down 5.7% 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.

At the close, Magellan Petroleum ( MPET) was up $0.02 (1.9%) to $0.84 on light volume. Throughout the day, 19,102 shares of Magellan Petroleum exchanged hands as compared to its average daily volume of 180,200 shares. The stock ranged in a price between $0.83-$0.84 after having opened the day at $0.83 as compared to the previous trading day's close of $0.82.

Magellan Petroleum Corporation, an independent energy company, is engaged in the exploration and production of oil and gas in the United States, Australia, and the United Kingdom. Magellan Petroleum has a market cap of $37.9 million and is part of the basic materials sector. Shares are down 9.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Magellan Petroleum 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 Magellan Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPET go as follows:

  • The gross profit margin for MAGELLAN PETROLEUM CORP is rather low; currently it is at 23.65%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MPET's net profit margin of -165.22% significantly underperformed when compared to the industry average.
  • MPET has underperformed the S&P 500 Index, declining 12.50% 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MAGELLAN PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • MPET, with its decline in revenue, underperformed when compared the industry average of 6.6%. Since the same quarter one year prior, revenues fell by 25.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MPET 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. To add to this, MPET has a quick ratio of 2.25, which demonstrates the ability of the company to cover short-term liquidity needs.

You can view the full analysis from the report here: Magellan Petroleum 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.

Dejour Energy ( DEJ) was another company that pushed the Energy industry higher today. Dejour Energy was up $0.01 (8.7%) to $0.16 on average volume. Throughout the day, 982,738 shares of Dejour Energy exchanged hands as compared to its average daily volume of 784,800 shares. The stock ranged in a price between $0.16-$0.17 after having opened the day at $0.16 as compared to the previous trading day's close of $0.15.

Dejour Energy Inc. is engaged in acquiring, exploring, and developing energy projects with a focus on oil and gas exploration in Canada and the United States. Dejour Energy has a market cap of $26.8 million and is part of the basic materials sector. Shares are down 18.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Dejour Energy a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Dejour Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DEJ go as follows:

  • The gross profit margin for DEJOUR ENERGY INC is currently lower than what is desirable, coming in at 33.32%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -84.46% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.51 million or 320.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, DEJ has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. This company's share value has not moved any higher or lower since its value 12 months ago, and we feel the risks associated with investing in this company will outweigh any potential future gains.
  • 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, DEJOUR ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Dejour 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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