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:
Charles & Colvard Ltd (CTHR)
Charles & Colvard Ltd gained 11.71% to $2.29. The gains came on a volume of 456,809 shares against an average daily volume of 44,301 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 $2.11, and a 200-day SMA of $3.47.
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.
Constellation Energy Partners Llc (CEP)
Constellation Energy Partners Llc gained 8.3% to $3.00. The gains came on a volume of 1,569,490 shares against an average daily volume of 91,558 shares. Constellation Energy Partners Llc has had a trading range from $3.20 to $2.02 over the last year, it has a 50-day SMA of $2.64, and a 200-day SMA of $2.44.
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.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 7.4% to $18.14. The gains came on a volume of 2,224,720 shares against an average daily volume of 1,431,392 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 $23.85, and a 200-day SMA of $20.26.
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.
Lehigh Gas Partners Lp (LGP)
Lehigh Gas Partners Lp gained 4.67% to $37.00. The gains came on a volume of 117,692 shares against an average daily volume of 88,982 shares. Lehigh Gas Partners Lp has had a trading range from $35.59 to $25.50 over the last year, its P/E ratio is 24.2, it has a 50-day SMA of $27.19, and a 200-day SMA of $26.42.
Lehigh Gas Partners LP is engaged in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel. It also owns and leases real estate used in the retail distribution of motor fuels.
Synergy Resources Corp (SYRG)
Synergy Resources Corp gained 3.57% to $12.78. The gains came on a volume of 1,113,670 shares against an average daily volume of 1,117,299 shares. Synergy Resources Corp has had a trading range from $14.11 to $7.25 over the last year, its P/E ratio is 49.9, it has a 50-day SMA of $12.33, and a 200-day SMA of $10.61.
Synergy Resources Corp is an exploration stage company. It is engaged in oil and gas acquisitions, exploration, development and production activities.
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.