3 Stocks Improving Performance Of The Energy Industry

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 251.90 points (-1.4%) at 17,165 as of Friday, Jan. 30, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,001 issues advancing vs. 2,121 declining with 101 unchanged.

The Energy industry as a whole closed the day up 1.6% versus the S&P 500, which was down 1.3%. Top gainers within the Energy industry included Enerjex Resources ( ENRJ), up 9.9%, FieldPoint Petroleum ( FPP), up 14.6%, Lucas Energy ( LEI), up 5.9%, New Concept Energy ( GBR), up 3.8% and Andatee China Marine Fuel Services ( AMCF), up 4.3%.

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

Andatee China Marine Fuel Services ( AMCF) is one of the companies that pushed the Energy industry higher today. Andatee China Marine Fuel Services was up $0.06 (4.3%) to $1.45 on light volume. Throughout the day, 3,447 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 32,600 shares. The stock ranged in a price between $1.38-$1.48 after having opened the day at $1.38 as compared to the previous trading day's close of $1.39.

Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. Andatee China Marine Fuel Services has a market cap of $14.6 million and is part of the basic materials sector. Shares are down 9.7% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Andatee China Marine Fuel Services 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 Andatee China Marine Fuel Services as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on AMCF go as follows:

  • The debt-to-equity ratio is very high at 2.80 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANDATEE CHINA MARINE FUEL's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.74 million or 74.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AMCF has underperformed the S&P 500 Index, declining 10.59% 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 gross profit margin for ANDATEE CHINA MARINE FUEL is currently extremely low, coming in at 5.63%. Regardless of AMCF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.08% trails the industry average.

You can view the full analysis from the report here: Andatee China Marine Fuel Services 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, Lucas Energy ( LEI) was up $0.01 (5.9%) to $0.10 on light volume. Throughout the day, 219,670 shares of Lucas Energy exchanged hands as compared to its average daily volume of 383,200 shares. The stock ranged in a price between $0.09-$0.10 after having opened the day at $0.09 as compared to the previous trading day's close of $0.09.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $3.1 million and is part of the basic materials sector. Shares are down 24.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Lucas Energy 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 Lucas Energy as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LEI go as follows:

  • 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 93.23%, 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 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.
  • LEI, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 19.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • LEI's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.08 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The net income growth from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 4.4% when compared to the same quarter one year prior, going from -$1.56 million to -$1.49 million.

You can view the full analysis from the report here: Lucas 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.

Enerjex Resources ( ENRJ) was another company that pushed the Energy industry higher today. Enerjex Resources was up $0.12 (9.9%) to $1.33 on average volume. Throughout the day, 9,918 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 12,600 shares. The stock ranged in a price between $1.33-$1.57 after having opened the day at $1.50 as compared to the previous trading day's close of $1.21.

Enerjex Resources has a market cap of $10.4 million and is part of the basic materials sector. Shares are down 32.0% year-to-date as of the close of trading on Thursday.

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.

More from Markets

Stocks End Close to Home

Stocks End Close to Home

Jim Cramer on Bank of America, Tariffs and the Goldman Sachs CEO Change

Jim Cramer on Bank of America, Tariffs and the Goldman Sachs CEO Change

GSK Shares Climb as Board Is Said to Mull Breakup of Pharma Giant

GSK Shares Climb as Board Is Said to Mull Breakup of Pharma Giant

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists