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 up 0.6% versus the S&P 500, which was down 0.3%. Laggards within the Energy industry included Tengasco ( TGC), down 2.9%, Barnwell Industries ( BRN), down 6.2%, Lucas Energy ( LEI), down 2.9%, Superior Drilling Products ( SDPI), down 1.9% and Dejour Energy ( DEJ), down 5.1%.

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

Dejour Energy ( DEJ) is one of the companies that pushed the Energy industry lower today. Dejour Energy was down $0.01 (5.1%) to $0.15 on average volume. Throughout the day, 587,170 shares of Dejour Energy exchanged hands as compared to its average daily volume of 745,900 shares. The stock ranged in price between $0.14-$0.16 after having opened the day at $0.16 as compared to the previous trading day's close of $0.16.

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 $27.2 million and is part of the basic materials sector. Shares are down 17.2% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Dejour Energy a buy, no analysts rate it a sell, and none rate it a hold.

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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.
  • DEJ'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, 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 11.8%. 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.

At the close, Superior Drilling Products ( SDPI) was down $0.07 (1.9%) to $3.68 on light volume. Throughout the day, 7,402 shares of Superior Drilling Products exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in price between $3.60-$3.74 after having opened the day at $3.70 as compared to the previous trading day's close of $3.75.

Superior Drilling Products has a market cap of $64.2 million and is part of the basic materials sector. Shares are down 10.8% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Superior Drilling Products 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.

Lucas Energy ( LEI) was another company that pushed the Energy industry lower today. Lucas Energy was down $0.00 (2.9%) to $0.10 on heavy volume. Throughout the day, 1,090,886 shares of Lucas Energy exchanged hands as compared to its average daily volume of 455,200 shares. The stock ranged in price between $0.10-$0.12 after having opened the day at $0.10 as compared to the previous trading day's close of $0.10.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $3.7 million and is part of the basic materials sector. Shares are down 14.3% year-to-date as of the close of trading on Thursday.

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.

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 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 92.25%, 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, slightly underperformed the industry average of 11.8%. 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.

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