Investing in small-cap materials stocks can be tricky. The direction of the broader economy often plays a big role in their success, and notoriously unpredictable factors like mining output or commodity prices can often be key to maintaining margins. But equities.com's Small-Cap Stars, our proprietary list of those small-cap companies with metrics that are typically the most indicative of future success, gives investors a way to identify those companies that are best-positioned to ride out the tough times and make major gains in the good times.
Here's a look at the five top-performing basic materials Small-Cap Stars:
Miller Energy Resources (MILL)
Miller Energy Resources gained 18.75% to $0.75. The gains came on a volume of 1,061,310 shares against an average daily volume of 578,750 shares. Miller Energy Resources has had a trading range from $6.60 to $0.62 over the last year, it has a 50-day SMA of $1.38, and a 200-day SMA of $3.17.
Miller Energy Resources Inc operates as an exploration and production company that utilizes seismic data and other technologies for geophysical exploration and development of oil and gas wells.
Gevo Inc. (GEVO)
Gevo Inc. gained 13.41% to $0.19. The gains came on a volume of 3,153,320 shares against an average daily volume of 4,139,839 shares. Gevo Inc. has had a trading range from $1.34 to $0.12 over the last year, it has a 50-day SMA of $0.23, and a 200-day SMA of $0.41.
Gevo Inc is a renewable chemicals and biofuels company. It is engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks.
Triangle Petroleum (TPLM)
Triangle Petroleum gained 5.33% to $5.34. The gains came on a volume of 1,140,370 shares against an average daily volume of 1,274,780 shares. Triangle Petroleum has had a trading range from $12.48 to $3.10 over the last year, its P/E ratio is 7.5, it has a 50-day SMA of $5.21, and a 200-day SMA of $7.94.
Triangle Petroleum Corp is an independent energy holding company. It has three main lines of business: oil and natural gas exploration, development and production; oilfield services; and midstream services.
Parker Drilling Co. (PKD)
Parker Drilling Co. gained 4.35% to $3.60. The gains came on a volume of 468,694 shares against an average daily volume of 680,371 shares. Parker Drilling Co. has had a trading range from $7.39 to $2.51 over the last year, its P/E ratio is 18.2, it has a 50-day SMA of $3.17, and a 200-day SMA of $4.50.
Parker Drilling Co provides contract drilling and drilling-related services and rental tools. Its business segments include Rental Tools, U.S. Barge Drilling, U.S. Drilling, International Drilling, and Technical Services.
Willbros Group Inc. (WG)
Willbros Group Inc. gained 3.04% to $3.05. The gains came on a volume of 1,622,000 shares against an average daily volume of 1,157,951 shares. Willbros Group Inc. has had a trading range from $13.69 to $1.50 over the last year, it has a 50-day SMA of $5.45, and a 200-day SMA of $7.64.
Willbros Group Inc is a specialty energy infrastructure contractor serving the oil, gas, refinery, petrochemical and power industries. It operates through three business segments; Utility T&D, Oil & Gas, Canada and Professional Services.
Equities.com's Small-Cap Stars - Stocks Made From Sterner Stuff
Investing in small-cap materials stocks is a high-risk, high-reward proposition much of the time. Often, the best way to approach the sector is simply limiting the number of misses as much as possible. And that's what the equities.com Small-Cap Stars system does.
By looking at past success stories among basic materials small caps, the Small-Cap Stars system can identify what level several dozen metrics were at among those successful companies and determine which of those factors were the most predictive of future success. We then precisely construct a carefully balanced screen through advanced statistical regression that will identify those companies that currently have the most in common with those that succeeded in the past immediately before those stocks took off.
Among the traits our system found the most revealing of a strong materials company were a low ratio of enterprise value to sales, a low effective tax rate, and a high ROE-cost of equity.
All data provided by QuoteMedia and was accurate as of 4:30 pm ET.