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:
Lapolla Industries Inc (LPAD)
Lapolla Industries Inc gained 18.56% to $0.46. The gains came on a volume of 28,360 shares against an average daily volume of 27,982 shares. Lapolla Industries Inc has had a trading range from $0.78 to $0.24 over the last year, it has a 50-day SMA of $0.50, and a 200-day SMA of $0.56.
LaPolla Industries Inc is a manufacturer and distributor of foam, coatings, and equipment, focused on developing and commercializing foam and coatings targeted at commercial and industrial and residential applications.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 3.9% to $21.29. The gains came on a volume of 1,272,080 shares against an average daily volume of 1,445,019 shares. Goodrich Petroleum Corp. has had a trading range from $30.52 to $11.80 over the last year, it has a 50-day SMA of $22.14, and a 200-day SMA of $20.10.
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.
Synergy Resources Corp (SYRG)
Synergy Resources Corp gained 1.89% to $13.51. The gains came on a volume of 837,385 shares against an average daily volume of 1,004,536 shares. Synergy Resources Corp has had a trading range from $14.11 to $8.11 over the last year, its P/E ratio is 52.1, it has a 50-day SMA of $12.46, and a 200-day SMA of $10.73.
Synergy Resources Corp is an exploration stage company. It is engaged in oil and gas acquisitions, exploration, development and production activities.
Gevo Inc. (GEVO)
Gevo Inc. gained 1.2% to $0.47. The gains came on a volume of 385,412 shares against an average daily volume of 1,050,488 shares. Gevo Inc. has had a trading range from $2.18 to $0.43 over the last year, it has a 50-day SMA of $0.67, and a 200-day SMA of $1.10.
Gevo Inc is a renewable chemicals and advanced biofuels company focused on the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks.
Rentech Nitrogen Partners (RNF)
Rentech Nitrogen Partners gained 1.18% to $15.40. The gains came on a volume of 89,310 shares against an average daily volume of 101,950 shares. Rentech Nitrogen Partners has had a trading range from $29.81 to $14.42 over the last year, it has a 50-day SMA of $16.08, and a 200-day SMA of $17.42.
Rentech Nitrogen Partners LP is a nitrogen fertilizer manufacturer. The Company produce primarily ammonia and urea ammonium nitrate solution, or UAN.
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.