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:
Profire Energy Inc (PFIE)
Profire Energy Inc gained 3.6% to $4.03. The gains came on a volume of 76,205 shares against an average daily volume of 723,699 shares. Profire Energy Inc has had a trading range from $5.89 to $1.31 over the last year, its P/E ratio is 32, it has a 50-day SMA of $4.43, and a 200-day SMA of $3.84.
Profire Energy Inc is engaged in the business of developing combustion management technologies for the oil and gas industry. It manufactures, installs and services oilfield combustion management technologies and related products.
Miller Energy Resources (MILL)
Miller Energy Resources gained 3.44% to $5.42. The gains came on a volume of 590,391 shares against an average daily volume of 515,570 shares. Miller Energy Resources has had a trading range from $8.97 to $4.40 over the last year, it has a 50-day SMA of $5.31, and a 200-day SMA of $6.37.
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.
Constellation Energy Partners Llc (CEP)
Constellation Energy Partners Llc gained 2.54% to $2.82. The gains came on a volume of 60,518 shares against an average daily volume of 135,690 shares. Constellation Energy Partners Llc has had a trading range from $3.20 to $1.90 over the last year, it has a 50-day SMA of $2.53, and a 200-day SMA of $2.40.
Constellation Energy Partners, LLC is focused on the acquisition, development and production of oil and natural gas properties (E&P properties) as well as related midstream assets.
Rentech Nitrogen Partners (RNF)
Rentech Nitrogen Partners gained 1.58% to $16.76. The gains came on a volume of 98,229 shares against an average daily volume of 85,297 shares. Rentech Nitrogen Partners has had a trading range from $32.99 to $15.29 over the last year, it has a 50-day SMA of $16.49, and a 200-day SMA of $18.65.
Rentech Nitrogen Partners LP is a nitrogen fertilizer manufacturer. The Company produce primarily ammonia and urea ammonium nitrate solution, or UAN.
Eagle Rock Energy Partners Lp Unit Ltd Partnership Int (EROC)
Eagle Rock Energy Partners Lp Unit Ltd Partnership Int gained 1.44% to $4.93. The gains came on a volume of 524,732 shares against an average daily volume of 704,543 shares. Eagle Rock Energy Partners Lp Unit Ltd Partnership Int has had a trading range from $8.25 to $3.97 over the last year, it has a 50-day SMA of $4.61, and a 200-day SMA of $5.24.
Eagle Rock Energy Partners, L.P. is engaged in gathering, compressing, processing & transporting natural gas; acquiring, developing & producing interests in oil & natural gas properties.
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.