3 Energy Stocks Pushing The Industry Higher

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 15.93 points (-0.1%) at 17,529 as of Tuesday, Aug. 18, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 984 issues advancing vs. 2,001 declining with 166 unchanged.

The Energy industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.2%. Top gainers within the Energy industry included Andatee China Marine Fuel Services ( AMCF), up 3.8%, Pedevco ( PED), up 5.8%, Superior Drilling Products ( SDPI), up 4.8%, U S Energy ( USEG), up 3.1% and CHC Group ( HELI), up 31.5%.

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

Superior Drilling Products ( SDPI) is one of the companies that pushed the Energy industry higher today. Superior Drilling Products was up $0.08 (4.8%) to $1.75 on average volume. Throughout the day, 17,300 shares of Superior Drilling Products exchanged hands as compared to its average daily volume of 21,100 shares. The stock ranged in a price between $1.63-$1.78 after having opened the day at $1.63 as compared to the previous trading day's close of $1.67.

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 $31.0 million and is part of the basic materials sector. Shares are down 59.9% 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 feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SDPI go as follows:

  • 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. For the next year, the market is expecting a contraction of 175.0% in earnings (-$0.11 versus -$0.04).
  • 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 229.3% when compared to the same quarter one year ago, falling from -$0.68 million to -$2.24 million.
  • Net operating cash flow has significantly decreased to -$0.12 million or 109.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 71.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 225.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 44.98% is the gross profit margin for SUPERIOR DRILLING PRODUCTS 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, SDPI's net profit margin of -77.61% significantly underperformed when compared to the industry average.

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

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At the close, Pedevco ( PED) was up $0.02 (5.8%) to $0.37 on light volume. Throughout the day, 1,350 shares of Pedevco exchanged hands as compared to its average daily volume of 45,100 shares. The stock ranged in a price between $0.35-$0.39 after having opened the day at $0.39 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 $13.6 million and is part of the basic materials sector. Shares are down 21.8% year-to-date as of the close of trading on Monday. 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 to the industry average, the firm's growth rate is much 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 83.34%, 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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Andatee China Marine Fuel Services ( AMCF) was another company that pushed the Energy industry higher today. Andatee China Marine Fuel Services was up $0.01 (3.8%) to $0.27 on average volume. Throughout the day, 35,722 shares of Andatee China Marine Fuel Services exchanged hands as compared to its average daily volume of 32,600 shares. The stock ranged in a price between $0.17-$0.38 after having opened the day at $0.38 as compared to the previous trading day's close of $0.26.

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 $3.2 million and is part of the basic materials sector. Shares are down 83.1% year-to-date as of the close of trading on Monday. 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.

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 to the industry average, the firm's growth rate is much 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 82.56%, 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 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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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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