6 Energy and Materials Stocks With Growth Potential

Joel Anderson  |

With Apple (AAPL) becoming the highest valued company in the world, it appears as though tech companies like Google (GOOG), Microsoft (MSFT), and IBM (IBM) have cemented their place near the top of the world's most important companies. However, for those among us with a taste for the old school, companies that offer a more tangible service might be more interesting. In that case, the Basic Materials and Energy sectors are right up your alley.

So, which Energy and Basic Materials companies are poised to make waves over the next few years? While it's never easy to accurately project the direction of any industry, particularly ones in a sector that relies heavily on the ever-shifting prices of commodities, but the following six companies have projected solid growth into the future, growth that will no doubt be powered by their strong margins.

The following six companies each have the following positive valuations that could mean they're destined to grow. The first is projected annual EPS growth over the next five years exceeding 25 percent. This means that the companies expect to continue growing at a solid rate. These companies are also relatively cheap based on their earnings and projected earnings as they have a PEG ratio (the ratio of P/E to projected growth) of under one. Finally, the companies have an operating margin of over 25 percent, meaning that they are keeping a large portion of their profits.

Thompson Creek Metals Company (TC)

Projected EPS Growth Next 5 Years: 59%   PEG: 0.11   Operating Margin: 39.52 percent

Thompson Creek Metals mines molybdenum in Canada and the United States. With facilities throughout both countries, Thompson Creek is expanding rapidly.

Gulfport Energy Corporation (GPOR)

Projected EPS Growth Next 5 Years: 48 percent   PEG: 0.34   Operating Margin: 48.4 percent

Gulfport Energy is an independent oil and gas company with properties in West Texas, West Cote Blanch Bay, the Louisiana Gulf Coast, and Hackberry fields.

CARBO Ceramics (CRR)

Projected EPS Growth Next 5 Years: 35.10 percent   PEG: 0.47   Operating Margin: 31.58 percent

CARBO is a supplier of ceramic proppant, a key material used in hydraulic fracturing, better known as fracking. The company also provides software, consulting services, spill prevention, and geotechnical monitoring for the fracking process.

Concho Resources (CXO)

Projected EPS Growth Next 5 Years: 43.81 percent   PEG: 0.58   Operating Margin: 49.93 percent

Concho Resources is an independent oil and gas company with its core operations in the Permiam Basin in West Texas.

Molycorp (MCP)

Projected EPS Growth Next 5 Years: 27.50 percent   PEG: 0.70   Operating Margin: 38.52 percent

Molycorp is a rare earth mining company that operates one of the only rare earth mining properties outside of China.

Resolute Energy Corp (REN)

Projected EPS Growth Next 5 Years: 29.00 percent   PEG: 0.96   Operating Margin: 25.70 percent

Resolute Energy Corp is an independent oil and gas company with properties in Wyoming and Utah.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
GPOR Gulfport Energy Corporation 7.95 -0.28 -3.40 2,200,362 Trade
COSI Cosi Inc. n/a n/a n/a n/a
REN Resolute Energy Corporation Comon Stock 31.50 -1.02 -3.14 416,282 Trade
CRR Carbo Ceramics Inc. 4.33 -0.18 -3.99 321,341 Trade
GOOG Alphabet Inc. 1,096.97 -16.83 -1.51 1,415,525 Trade
TC TuanChe Limited 6.35 0.05 0.79 52,873 Trade
CXO Concho Resources Inc. 103.70 -8.75 -7.78 5,864,039 Trade
MSFT Microsoft Corporation 109.41 2.26 2.11 29,070,301 Trade
IBM International Business Machines Corporation 137.84 -0.16 -0.12 2,937,487 Trade
AAPL Apple Inc. 171.06 -0.97 -0.56 17,251,148 Trade

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