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 3.1% versus the S&P 500, which was down 0.3%. Laggards within the Energy industry included Houston American Energy ( HUSA), down 3.6%, Pedevco ( PED), down 7.1%, Barnwell Industries ( BRN), down 5.1%, SAExploration Holdings ( SAEX), down 1.7% and Enerjex Resources ( ENRJ), down 6.6%.

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

Enerjex Resources ( ENRJ) is one of the companies that pushed the Energy industry lower today. Enerjex Resources was down $0.08 (6.6%) to $1.13 on average volume. Throughout the day, 17,699 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 19,600 shares. The stock ranged in price between $1.08-$1.23 after having opened the day at $1.23 as compared to the previous trading day's close of $1.21.

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 $10.1 million and is part of the basic materials sector. Shares are down 39.5% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Enerjex Resources as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ENRJ 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 16787.5% when compared to the same quarter one year ago, falling from $0.10 million to -$17.36 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, ENERJEX RESOURCES INC'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 -$0.55 million or 725.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Along with the very weak revenue results, ENRJ underperformed when compared to the industry average of 37.8%. Since the same quarter one year prior, revenues plummeted by 61.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ENERJEX RESOURCES INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ENERJEX RESOURCES INC increased its bottom line by earning $0.45 versus $0.00 in the prior year.

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

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At the close, Pedevco ( PED) was down $0.02 (7.1%) to $0.32 on light volume. Throughout the day, 7,324 shares of Pedevco exchanged hands as compared to its average daily volume of 55,100 shares. The stock ranged in price between $0.32-$0.33 after having opened the day at $0.33 as compared to the previous trading day's close of $0.35.

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 $13.2 million and is part of the basic materials sector. Shares are down 22.2% year-to-date as of the close of trading on Friday. 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 79.42%, 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 lower today. Houston American Energy was down $0.01 (3.6%) to $0.21 on average volume. Throughout the day, 41,753 shares of Houston American Energy exchanged hands as compared to its average daily volume of 46,600 shares. The stock ranged in price between $0.20-$0.24 after having opened the day at $0.24 as compared to the previous trading day's close of $0.22.

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 $11.2 million and is part of the basic materials sector. Shares are up 35.7% year-to-date as of the close of trading on Friday.

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.

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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 31.25%, 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 37.8%. 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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