3 Stocks Driving The Energy 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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 121 points (0.7%) at 17,751 as of Wednesday, July 29, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,248 issues advancing vs. 830 declining with 135 unchanged.

The Energy industry as a whole closed the day up 2.7% versus the S&P 500, which was up 0.7%. Top gainers within the Energy industry included Houston American Energy ( HUSA), up 12.2%, Lilis Energy ( LLEX), up 16.3%, Pedevco ( PED), up 15.6%, Andatee China Marine Fuel Services ( AMCF), up 10.0% and Mexco Energy ( MXC), 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 $0.05 (10.0%) to $0.52 on average volume. Throughout the day, 51,028 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 41,000 shares. The stock ranged in a price between $0.46-$0.59 after having opened the day at $0.57 as compared to the previous trading day's close of $0.48.

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 $5.1 million and is part of the basic materials sector. Shares are down 69.2% 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 the cash generation rate to the industry average, the firm's growth is significantly lower.
  • AMCF'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 71.76%, 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 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

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At the close, Pedevco ( PED) was up $0.05 (15.6%) to $0.37 on light volume. Throughout the day, 33,832 shares of Pedevco exchanged hands as compared to its average daily volume of 55,700 shares. The stock ranged in a price between $0.35-$0.37 after having opened the day at $0.36 as compared to the previous trading day's close of $0.32.

PEDEVCO Corp., doing business as Pacific Energy Development, engages in the acquisition, exploration, development, and production of oil and natural gas shale plays in the United States. Pedevco has a market cap of $12.5 million and is part of the basic materials sector. Shares are down 28.9% 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 generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PED go as follows:

  • The debt-to-equity ratio of 1.38 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.26, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has significantly decreased to -$3.88 million or 79.31% 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.
  • PED'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 79.56%, 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, PEDEVCO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • PEDEVCO CORP reported significant earnings per share improvement in the most recent quarter compared to 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 reported poor results of -$1.08 versus -$0.98 in the prior year. This year, the market expects an improvement in earnings (-$0.24 versus -$1.08).

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

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Houston American Energy ( HUSA) was another company that pushed the Energy industry higher today. Houston American Energy was up $0.02 (12.2%) to $0.23 on heavy volume. Throughout the day, 95,259 shares of Houston American Energy exchanged hands as compared to its average daily volume of 46,900 shares. The stock ranged in a price between $0.20-$0.23 after having opened the day at $0.20 as compared to the previous trading day's close of $0.20.

Houston American Energy Corp., an independent energy company, acquires, 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 $10.5 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. Currently there are no analysts who rate Houston American Energy a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on HUSA 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 121.9% when compared to the same quarter one year ago, falling from -$0.54 million to -$1.19 million.
  • 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, HOUSTON AMERN ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • HOUSTON AMERN ENERGY 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. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, HOUSTON AMERN ENERGY CORP reported poor results of -$0.07 versus -$0.06 in the prior year.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.67%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% 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.
  • Despite the weak revenue results, HUSA has significantly outperformed against the industry average of 38.8%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Houston American Energy Ratings Report

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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.