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 8.3% to $1.07. The gains came on a volume of 2,281,000 shares against an average daily volume of 629,820 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 $3.13.
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.
Gastar Exploration (GST)
Gastar Exploration gained 6.43% to $2.98. The gains came on a volume of 1,024,210 shares against an average daily volume of 756,316 shares. Gastar Exploration has had a trading range from $9.10 to $1.89 over the last year, its P/E ratio is 5.1, it has a 50-day SMA of $2.72, and a 200-day SMA of $4.70.
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.
American Midstream Partners Lp (AMID)
American Midstream Partners Lp gained 5.78% to $18.27. The gains came on a volume of 49,942 shares against an average daily volume of 48,392 shares. American Midstream Partners Lp has had a trading range from $32.01 to $15.71 over the last year, it has a 50-day SMA of $17.79, and a 200-day SMA of $23.35.
American Midstream Partners LP owns, operates, develops and acquires a portfolio of natural gas midstream energy assets The Company is engaged in the business of gathering, treating, processing, fractionating and transporting.
Isramco Inc. (ISRL)
Isramco Inc. gained 5.23% to $134.72. The gains came on a volume of 528 shares against an average daily volume of 408 shares. Isramco Inc. has had a trading range from $146.47 to $109.00 over the last year, its P/E ratio is 67.4, it has a 50-day SMA of $127.16, and a 200-day SMA of $127.97.
Isramco Inc is an independent oil and natural gas company, engaged in the exploration, development and production of predominately oil and natural gas properties located onshore in the United States and off shore Israel.
Parker Drilling Co. (PKD)
Parker Drilling Co. gained 4.86% to $3.88. The gains came on a volume of 797,964 shares against an average daily volume of 645,846 shares. Parker Drilling Co. has had a trading range from $7.18 to $2.51 over the last year, its P/E ratio is 19.5, it has a 50-day SMA of $3.21, and a 200-day SMA of $4.47.
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.
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.