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 6% to $0.53. The gains came on a volume of 19,200 shares against an average daily volume of 11,006 shares. Lapolla Industries Inc has had a trading range from $0.78 to $0.22 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.
Charles & Colvard Ltd (CTHR)
Charles & Colvard Ltd gained 2.29% to $1.79. The gains came on a volume of 68,014 shares against an average daily volume of 44,548 shares. Charles & Colvard Ltd has had a trading range from $8.34 to $1.70 over the last year, it has a 50-day SMA of $2.16, and a 200-day SMA of $3.65.
Charles & Colvard Ltd is engaged in manufacturing, marketing and distribution of moissanite jewels, finished jewelry and fashion finished jewelry for sale in the international jewelry market.
Aceto Corp. (ACET)
Aceto Corp. gained 2.16% to $17.00. The gains came on a volume of 122,978 shares against an average daily volume of 182,081 shares. Aceto Corp. has had a trading range from $25.25 to $14.28 over the last year, its P/E ratio is 16.2, it has a 50-day SMA of $17.45, and a 200-day SMA of $19.51.
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.
Isramco Inc. (ISRL)
Isramco Inc. gained 1.66% to $119.00. The gains came on a volume of 913 shares against an average daily volume of 1,040 shares. Isramco Inc. has had a trading range from $157.99 to $104.10 over the last year, it has a 50-day SMA of $129.10, and a 200-day SMA of $130.39.
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.
Constellation Energy Partners Llc (CEP)
Constellation Energy Partners Llc gained 1.1% to $2.75. The gains came on a volume of 283,266 shares against an average daily volume of 114,300 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 $2.58, and a 200-day SMA of $2.43.
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.
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.