3 Stocks Pushing The Energy Industry Lower

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.

The Energy industry as a whole closed the day down 2.4% versus the S&P 500, which was down 0.4%. Laggards within the Energy industry included Houston American Energy ( HUSA), down 7.3%, Lilis Energy ( LLEX), down 3.0%, Ivanhoe Energy ( IVAN), down 3.8%, New Concept Energy ( GBR), down 11.2% and Enerjex Resources ( ENRJ), down 12.4%.

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

Enerjex Resources ( ENRJ) is one of the companies that pushed the Energy industry lower today. Enerjex Resources was down $0.38 (12.4%) to $2.68 on heavy volume. Throughout the day, 147,817 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 13,800 shares. The stock ranged in price between $2.65-$3.20 after having opened the day at $3.14 as compared to the previous trading day's close of $3.06.

Enerjex Resources has a market cap of $12.2 million and is part of the basic materials sector. Shares are up 53.0% year-to-date as of the close of trading on Tuesday.

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At the close, Ivanhoe Energy ( IVAN) was down $0.02 (3.8%) to $0.38 on light volume. Throughout the day, 66,589 shares of Ivanhoe Energy exchanged hands as compared to its average daily volume of 95,000 shares. The stock ranged in price between $0.37-$0.42 after having opened the day at $0.42 as compared to the previous trading day's close of $0.40.

Ivanhoe Energy has a market cap of $6.1 million and is part of the basic materials sector. Shares are down 29.0% year-to-date as of the close of trading on Tuesday.

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Houston American Energy ( HUSA) was another company that pushed the Energy industry lower today. Houston American Energy was down $0.02 (7.3%) to $0.19 on average volume. Throughout the day, 160,342 shares of Houston American Energy exchanged hands as compared to its average daily volume of 134,400 shares. The stock ranged in price between $0.18-$0.21 after having opened the day at $0.19 as compared to the previous trading day's close of $0.20.

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 $12.0 million and is part of the basic materials sector. Shares are up 27.7% year-to-date as of the close of trading on Tuesday.

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.

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Highlights from TheStreet Ratings analysis on HUSA go as follows:

  • Net operating cash flow has decreased to -$0.36 million or 29.60% 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.
  • 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 47.50%, which is also worse than the performance of the S&P 500 Index. 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 56.14%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HUSA's net profit margin of -898.24% significantly underperformed when compared to the industry average.
  • HUSA, with its very weak revenue results, has greatly underperformed against the industry average of 11.8%. Since the same quarter one year prior, revenues plummeted by 66.5%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

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.

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