3 Energy Stocks Pushing Industry Growth

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 55.52 points (-0.3%) at 17,690 as of Friday, July 31, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,140 declining with 130 unchanged.

The Energy industry as a whole closed the day down 2.1% versus the S&P 500, which was down 0.2%. Top gainers within the Energy industry included Escalera Resources ( ESCR), up 18.0%, Royale Energy ( ROYL), up 4.1%, Superior Drilling Products ( SDPI), up 2.5%, Magellan Petroleum ( MPET), up 6.2% and North American Energy Partners ( NOA), up 1.6%.

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

North American Energy Partners ( NOA) is one of the companies that pushed the Energy industry higher today. North American Energy Partners was up $0.03 (1.6%) to $1.93 on light volume. Throughout the day, 16,318 shares of North American Energy Partners exchanged hands as compared to its average daily volume of 33,200 shares. The stock ranged in a price between $1.86-$1.97 after having opened the day at $1.93 as compared to the previous trading day's close of $1.90.

North American Energy Partners Inc., through its subsidiaries, provides mining and heavy construction services to customers in the resource development and industrial construction sectors primarily in Western Canada. North American Energy Partners has a market cap of $62.8 million and is part of the basic materials sector. Shares are down 39.5% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate North American Energy Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates North American Energy Partners as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins.

Highlights from TheStreet Ratings analysis on NOA 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 Energy Equipment & Services industry. The net income has significantly decreased by 500.0% when compared to the same quarter one year ago, falling from $0.13 million to -$0.50 million.
  • The gross profit margin for NORTH AMERICAN ENERGY PRTNRS is currently lower than what is desirable, coming in at 26.49%. Regardless of NOA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NOA's net profit margin of -0.59% significantly underperformed when compared to the industry average.
  • 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 Energy Equipment & Services industry and the overall market, NORTH AMERICAN ENERGY PRTNRS's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 71.36% over the past year. 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.
  • NORTH AMERICAN ENERGY PRTNRS's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NORTH AMERICAN ENERGY PRTNRS continued to lose money by earning -$0.03 versus -$0.50 in the prior year. This year, the market expects earnings to be in line with last year (-$0.03 versus -$0.03).

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

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At the close, Magellan Petroleum ( MPET) was up $0.15 (6.2%) to $2.58 on average volume. Throughout the day, 19,732 shares of Magellan Petroleum exchanged hands as compared to its average daily volume of 19,100 shares. The stock ranged in a price between $2.40-$2.58 after having opened the day at $2.50 as compared to the previous trading day's close of $2.43.

Magellan Petroleum Corporation, an independent energy company, is engaged in the exploration and production of oil and gas in the United States, Australia, and the United Kingdom. Magellan Petroleum has a market cap of $13.5 million and is part of the basic materials sector. Shares are down 66.6% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Magellan Petroleum a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Magellan Petroleum as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPET 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 108.6% when compared to the same quarter one year ago, falling from $24.52 million to -$2.12 million.
  • MPET'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 84.75%, 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, MAGELLAN PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • MAGELLAN PETROLEUM CORP has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MAGELLAN PETROLEUM CORP continued to lose money by earning -$2.00 versus -$2.88 in the prior year. For the next year, the market is expecting a contraction of 4.0% in earnings (-$2.08 versus -$2.00).
  • Along with the very weak revenue results, MPET underperformed when compared to the industry average of 38.8%. Since the same quarter one year prior, revenues plummeted by 63.9%. 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: Magellan Petroleum Ratings Report

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Superior Drilling Products ( SDPI) was another company that pushed the Energy industry higher today. Superior Drilling Products was up $0.04 (2.5%) to $1.65 on heavy volume. Throughout the day, 36,850 shares of Superior Drilling Products exchanged hands as compared to its average daily volume of 18,800 shares. The stock ranged in a price between $1.61-$1.65 after having opened the day at $1.61 as compared to the previous trading day's close of $1.61.

Superior Drilling Products, Inc., a drilling and completion tool technology company, engages in the manufacture, repair, sale, and rental of drilling tools in the United States and internationally. Superior Drilling Products has a market cap of $28.4 million and is part of the basic materials sector. Shares are down 61.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Superior Drilling Products a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Superior Drilling Products as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SDPI 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 Energy Equipment & Services industry. The net income has significantly decreased by 220.6% when compared to the same quarter one year ago, falling from $0.87 million to -$1.04 million.
  • Net operating cash flow has significantly decreased to $0.54 million or 63.62% 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.
  • SUPERIOR DRILLING PRODUCTS 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 year, the market expects earnings to be in line with last year (-$0.04 versus -$0.04).
  • The gross profit margin for SUPERIOR DRILLING PRODUCTS is rather high; currently it is at 52.83%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, SDPI's net profit margin of -25.59% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Energy Equipment & Services industry and the overall market, SUPERIOR DRILLING PRODUCTS's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Superior Drilling Products 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.

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