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 32.07% to $0.99. The gains came on a volume of 2,053,530 shares against an average daily volume of 586,215 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 $1.37, and a 200-day SMA of $3.15.
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 10.88% to $0.21. The gains came on a volume of 2,763,350 shares against an average daily volume of 4,041,383 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 7.68% to $5.75. The gains came on a volume of 1,648,220 shares against an average daily volume of 1,273,950 shares. Triangle Petroleum has had a trading range from $12.48 to $3.10 over the last year, its P/E ratio is 7.9, it has a 50-day SMA of $5.21, and a 200-day SMA of $7.90.
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.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 4.78% to $3.73. The gains came on a volume of 2,754,070 shares against an average daily volume of 3,867,447 shares. Goodrich Petroleum Corp. has had a trading range from $30.52 to $2.35 over the last year, it has a 50-day SMA of $3.35, and a 200-day SMA of $11.18.
Goodrich Petroleum Corp is an independent oil & natural gas company engaged in the exploration, development & production of oil & natural gas on properties in South Texas, Northwest Louisiana & East Texas & Southwest Mississippi & Southeast Louisiana.
Gastar Exploration (GST)
Gastar Exploration gained 4.09% to $2.80. The gains came on a volume of 580,023 shares against an average daily volume of 766,609 shares. Gastar Exploration has had a trading range from $9.10 to $1.89 over the last year, its P/E ratio is 4.9, it has a 50-day SMA of $2.71, and a 200-day SMA of $4.72.
Gastar Exploration Inc is an independent energy company. It is engaged in the exploration, development and production of oil, condensate, natural gas and NGLs in the US.
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.