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.

The Energy industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.5%. Laggards within the Energy industry included Tengasco ( TGC), down 1.7%, Saratoga Resources ( SARA), down 5.0%, Escalera Resources ( ESCR), down 2.2%, Enerjex Resources ( ENRJ), down 4.3% and Mexco Energy ( MXC), down 2.0%.

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

China Petroleum & Chemical ( SNP) is one of the companies that pushed the Energy industry lower today. China Petroleum & Chemical was down $1.58 (1.9%) to $81.17 on light volume. Throughout the day, 89,237 shares of China Petroleum & Chemical exchanged hands as compared to its average daily volume of 156,100 shares. The stock ranged in price between $80.72-$81.49 after having opened the day at $81.46 as compared to the previous trading day's close of $82.75.

China Petroleum & Chemical Corporation, an energy and chemical company, through its subsidiaries, is engaged in the oil and gas, and chemical operations in the People's Republic of China. China Petroleum & Chemical has a market cap of $97.1 billion 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 are no analysts who rate China Petroleum & Chemical a buy, 1 analyst rates it a sell, and 1 rates 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 China Petroleum & Chemical as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on SNP go as follows:

  • The revenue growth came in higher than the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $8,251.64 million or 7.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.58%.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.23 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 11.6% when compared to the same quarter one year ago, dropping from $3,611.90 million to $3,193.08 million.

You can view the full analysis from the report here: China Petroleum & Chemical 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, Enerjex Resources ( ENRJ) was down $0.10 (4.3%) to $2.20 on light volume. Throughout the day, 10,329 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 27,700 shares. The stock ranged in price between $2.19-$2.32 after having opened the day at $2.32 as compared to the previous trading day's close of $2.30.

EnerJex Resources, Inc., an independent energy company, acquires, develops, exploits, and produces crude oil and natural gas in the United States. Enerjex Resources has a market cap of $20.7 million and is part of the basic materials sector. Shares are up 15.0% year-to-date as of the close of trading on Tuesday.

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 Enerjex Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ENRJ go as follows:

  • ENRJ'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 63.00%, 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.
  • Net operating cash flow has declined marginally to $1.43 million or 1.45% when compared to the same quarter last year. Despite a decrease in cash flow ENERJEX RESOURCES INC is still fairing well by exceeding its industry average cash flow growth rate of -12.58%.
  • 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, ENERJEX RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
  • 40.86% is the gross profit margin for ENERJEX RESOURCES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENRJ's net profit margin of 46.89% significantly outperformed against the industry.

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

Saratoga Resources ( SARA) was another company that pushed the Energy industry lower today. Saratoga Resources was down $0.02 (5.0%) to $0.28 on average volume. Throughout the day, 153,840 shares of Saratoga Resources exchanged hands as compared to its average daily volume of 178,900 shares. The stock ranged in price between $0.25-$0.30 after having opened the day at $0.29 as compared to the previous trading day's close of $0.30.

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 $9.0 million and is part of the basic materials sector. Shares are up 33.6% 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.

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 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 77.52%, 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.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%