3 Stocks Raising 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 47.51 points (-0.3%) at 17,551 as of Tuesday, Aug. 4, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,368 issues advancing vs. 1,676 declining with 154 unchanged.

The Energy industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Top gainers within the Energy industry included Lilis Energy ( LLEX), up 2.7%, Escalera Resources ( ESCR), up 2.1%, Samson Oil & Gas ( SSN), up 4.1%, Superior Drilling Products ( SDPI), up 1.9% and Lucas Energy ( LEI), up 4.0%.

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

Lucas Energy ( LEI) is one of the companies that pushed the Energy industry higher today. Lucas Energy was up $0.07 (4.0%) to $1.83 on light volume. Throughout the day, 1,258 shares of Lucas Energy exchanged hands as compared to its average daily volume of 22,600 shares. The stock ranged in a price between $1.83-$1.88 after having opened the day at $1.85 as compared to the previous trading day's close of $1.76.

Lucas Energy, Inc. operates as an independent oil and gas company in the United States. Lucas Energy has a market cap of $2.5 million and is part of the basic materials sector. Shares are down 42.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Lucas Energy a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lucas Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LEI go as follows:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LUCAS ENERGY INC is currently lower than what is desirable, coming in at 29.77%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -281.46% is significantly below that of the industry average.
  • LEI'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 84.65%, 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income has decreased by 2.3% when compared to the same quarter one year ago, dropping from -$1.05 million to -$1.08 million.
  • Along with the very weak revenue results, LEI underperformed when compared to the industry average of 37.8%. Since the same quarter one year prior, revenues plummeted by 66.7%. 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: Lucas Energy Ratings Report

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At the close, Superior Drilling Products ( SDPI) was up $0.03 (1.9%) to $1.64 on light volume. Throughout the day, 4,473 shares of Superior Drilling Products exchanged hands as compared to its average daily volume of 19,200 shares. The stock ranged in a price between $1.57-$1.64 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 $28.5 million and is part of the basic materials sector. Shares are down 61.3% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Superior Drilling Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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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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Samson Oil & Gas ( SSN) was another company that pushed the Energy industry higher today. Samson Oil & Gas was up $0.03 (4.1%) to $0.76 on heavy volume. Throughout the day, 70,074 shares of Samson Oil & Gas exchanged hands as compared to its average daily volume of 40,000 shares. The stock ranged in a price between $0.72-$0.83 after having opened the day at $0.77 as compared to the previous trading day's close of $0.73.

Samson Oil & Gas Limited, an independent energy company, acquires, explores for, exploits, and develops oil and natural gas properties in the United States. The company produces crude oil, natural gas, and natural gas liquids. Samson Oil & Gas has a market cap of $9.4 million and is part of the basic materials sector. Shares are down 63.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Samson Oil & Gas a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Samson Oil & Gas as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on SSN 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 410.2% when compared to the same quarter one year ago, falling from -$0.38 million to -$1.94 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, SAMSON OIL & GAS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SAMSON OIL & GAS LTD is currently lower than what is desirable, coming in at 30.53%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -73.00% is significantly below that of the industry average.
  • This stock's share value has moved by only 83.57% 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.
  • SAMSON OIL & GAS LTD'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, SAMSON OIL & GAS LTD turned its bottom line around by earning $0.00 versus -$1.20 in the prior year.

You can view the full analysis from the report here: Samson Oil & Gas 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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