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.

One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 6.62 points (0.0%) at 17,862 as of Wednesday, Feb. 11, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,395 issues advancing vs. 1,696 declining with 137 unchanged.

The Energy industry as a whole closed the day down 1.0% versus the S&P 500, which was unchanged. Top gainers within the Energy industry included Tengasco ( TGC), up 7.4%, Saratoga Resources ( SARA), up 3.4%, Andatee China Marine Fuel Services ( AMCF), up 5.0%, Lilis Energy ( LLEX), up 1.6% and Pedevco ( PED), up 1.7%.

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

Pedevco ( PED) is one of the companies that pushed the Energy industry higher today. Pedevco was up $0.01 (1.7%) to $0.60 on light volume. Throughout the day, 47,620 shares of Pedevco exchanged hands as compared to its average daily volume of 93,100 shares. The stock ranged in a price between $0.59-$0.64 after having opened the day at $0.61 as compared to the previous trading day's close of $0.59.

PEDEVCO Corp., doing business as Pacific Energy Development, is engaged in the acquisition, exploration, development, and production of oil and natural gas shale plays in the United States. Pedevco has a market cap of $17.9 million and is part of the basic materials sector. Shares are up 31.1% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Pedevco a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Pedevco as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PED 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 132.5% when compared to the same quarter one year ago, falling from -$2.07 million to -$4.80 million.
  • The debt-to-equity ratio is very high at 9.67 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, PED has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PEDEVCO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 54.54% compared to the year-earlier 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.
  • PEDEVCO CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PEDEVCO CORP continued to lose money by earning -$0.98 versus -$1.80 in the prior year. This year, the market expects an improvement in earnings (-$0.79 versus -$0.98).

You can view the full analysis from the report here: Pedevco Ratings Report

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At the close, Andatee China Marine Fuel Services ( AMCF) was up $0.07 (5.0%) to $1.48 on light volume. Throughout the day, 9,600 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in a price between $1.40-$1.49 after having opened the day at $1.40 as compared to the previous trading day's close of $1.41.

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 $15.1 million and is part of the basic materials sector. Shares are down 4.5% year-to-date as of the close of trading on Tuesday. 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.

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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.
  • In its most recent trading session, AMCF 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. 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.

Saratoga Resources ( SARA) was another company that pushed the Energy industry higher today. Saratoga Resources was up $0.01 (3.4%) to $0.21 on light volume. Throughout the day, 68,072 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 163,900 shares. The stock ranged in a price between $0.20-$0.24 after having opened the day at $0.22 as compared to the previous trading day's close of $0.20.

Saratoga Resources, Inc., an independent oil and natural gas company, acquires, exploits, produces, and develops crude oil and natural gas properties in the United States. Saratoga Resources has a market cap of $6.9 million and is part of the basic materials sector. Shares are up 2.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Saratoga Resources a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Saratoga Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SARA go as follows:

  • The debt-to-equity ratio is very high at 14.32 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SARA maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SARATOGA RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SARATOGA RESOURCES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, SARATOGA RESOURCES INC reported poor results of -$0.85 versus -$0.13 in the prior year.
  • 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 79.4% when compared to the same quarter one year ago, falling from -$5.73 million to -$10.27 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 80.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 73.68% compared to the year-earlier 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.

You can view the full analysis from the report here: Saratoga Resources 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.