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:
Constellation Energy Partners Llc (CEP)
Constellation Energy Partners Llc gained 12.5% to $3.87. The gains came on a volume of 1,169,170 shares against an average daily volume of 175,737 shares. Constellation Energy Partners Llc has had a trading range from $3.60 to $2.04 over the last year, it has a 50-day SMA of $2.81, and a 200-day SMA of $2.49.
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.
Gevo Inc. (GEVO)
Gevo Inc. gained 10.45% to $0.52. The gains came on a volume of 2,053,490 shares against an average daily volume of 1,057,655 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 $0.66, and a 200-day SMA of $1.09.
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.
Eagle Rock Energy Partners Lp Unit Ltd Partnership Int (EROC)
Eagle Rock Energy Partners Lp Unit Ltd Partnership Int gained 5.85% to $4.34. The gains came on a volume of 886,934 shares against an average daily volume of 512,401 shares. Eagle Rock Energy Partners Lp Unit Ltd Partnership Int has had a trading range from $7.88 to $3.97 over the last year, it has a 50-day SMA of $4.62, and a 200-day SMA of $4.95.
Eagle Rock Energy Partners, L.P. is engaged in gathering, compressing, processing & transporting natural gas; acquiring, developing & producing interests in oil & natural gas properties.
Penford Corporation (PENX)
Penford Corporation gained 3.89% to $13.62. The gains came on a volume of 29,129 shares against an average daily volume of 40,134 shares. Penford Corporation has had a trading range from $15.18 to $10.71 over the last year, its P/E ratio is 43.2, it has a 50-day SMA of $12.25, and a 200-day SMA of $12.58.
Penford Corp is a developer, manufacturer and marketer of specialty natural-based ingredient systems for many industrial and food applications.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 3.8% to $22.10. The gains came on a volume of 1,269,130 shares against an average daily volume of 1,431,283 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 $21.99, 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.
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.