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 7.82% to $5.24. The gains came on a volume of 500,447 shares against an average daily volume of 506,641 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 $5.30, and a 200-day SMA of $6.39.
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.
Harvest Natural Resources Inc. (HNR)
Harvest Natural Resources Inc. gained 2.68% to $4.60. The gains came on a volume of 121,875 shares against an average daily volume of 431,704 shares. Harvest Natural Resources Inc. has had a trading range from $6.08 to $2.76 over the last year, it has a 50-day SMA of $4.80, and a 200-day SMA of $4.49.
Harvest Natural Resources, Inc. is an energy company engaged in the acquisition, exploration, development, production and disposition of oil and natural gas properties.
Aceto Corp. (ACET)
Aceto Corp. gained 2.58% to $17.88. The gains came on a volume of 184,618 shares against an average daily volume of 202,399 shares. Aceto Corp. has had a trading range from $25.25 to $14.28 over the last year, its P/E ratio is 17, it has a 50-day SMA of $17.55, and a 200-day SMA of $19.43.
Aceto Corp is engaged in the marketing, sales and distribution of pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products and specialty chemicals.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 2.15% to $23.33. The gains came on a volume of 750,792 shares against an average daily volume of 1,393,214 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 $26.05, and a 200-day SMA of $20.84.
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.
Par Petroleum Corp (PARR)
Par Petroleum Corp gained 1.78% to $20.00. The gains came on a volume of 63,680 shares against an average daily volume of 56,832 shares. Par Petroleum Corp has had a trading range from $21.40 to $16.00 over the last year, it has a 50-day SMA of $19.57, and a 200-day SMA of $0.00.
Par Petroleum Corporation is a diversified energy holding company. The Company operates an integrated sourcing, marketing, transportation and distribution business focused on energy commodities, mainly crude oil.
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.