Six Small-Cap Stars Backed by Both Analysts and Wall Street

Michael Teague |

Given the improbable but spectacular year that 2013 was for stocks, the lackluster opening to 2014 has begun to create serious jitters on Wall Street. While the most bearish scenario is by no means a guarantee, investors would do well to have a contingency plan on deck in the event that things get any uglier.

Excluding the most disastrous outcomes, however, investors should not allow the events of January to deter them from looking for growth opportunities, especially since Equities.com’s Small-Cap Stars screener was designed precisely for this purpose.

This can be demonstrated using any sector of the economy, even Materials companies who are projected to take a hit from, among other things, a Chinese economy that is cooling its heels, and oversupply in commodities ranging from iron-ore to natural gas.

The small-cap space in general is a notoriously difficult one, especially for the self-directed stock-picker. Analysts, hedge funds, and other financial institutions have the money and the knowledge conduct the kind of research that DIY investors can usually only dream of. When looking for prospects, then, it can be a good idea to take a look at what they are doing.

The following six Basic Materials companies have been selected from Equities.com’s Small-Cap Stars index, based on the fact they each have an average analyst rating of “buy or better” (analyst ratings are averaged on a scale from 1 to 5, with 1 being a “strong buy” and 5 being a “strong sell”), as well as a high level of institutional ownership (over 90 percent).

Furthermore, these stocks have all been on an upward trajectory over the past six months.

PolyOne Corporation (POL)

Industry: Specialty Chemicals

Market-Cap: $3.33 billion

Price: $34.41

Institutional Ownership: 92.90 percent

Average Analyst Recommendation: 2

Six-Month Return: +18.75 percent

Stone Energy Group (SGY)

Industry: Independent Oil & Gas

Market-Cap: $1.43 billion

Price: $29.38



Institutional Ownership: 98.20 percent

Average Analyst Recommendation: 2

Six-Month Return: +16.15 percent

OM Group Inc. (OMG)

Industry: Specialty Chemicals

Market-Cap: $994.82 million

Price: $31.65

Institutional Ownership: 99.80 percent

Average Analyst Recommendation: 2

Six-Month Return: +0.29 percent

Tesco Corporation (TESO)

Industry: Oil & Gas Equipment & Services

Market-Cap: $795.98 million

Price:  $20.37

Institutional Ownership: 91.80 percent

Average Analyst Recommendation: 2.3

Six-Month Return: +52.58 percent

Gibraltar Industries Inc. (ROCK)

Industry: Steel & Iron

Market-Cap: $546.51 million

Price: $17.66

Institutional Ownership: 94.10 percent

Average Analyst Recommendation: 2.3

Six-Month Return: +24 percent

 

Northwest Pipe Co. (NWPX)

Industry: Steel & Iron

Market-Cap: $312.95 million

Price: $33.13

Institutional Ownership: 91 percent

Average Analyst Recommendation: 1.8

Six-Month Return: +12.50 percent

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
OMG OM Group, Inc. n/a n/a n/a 0
SGY Stone Energy Corporation 8.64 1.54 21.69 5,691,826
ROCK Gibraltar Industries Inc. 42.20 0.10 0.24 163,460
TESO Tesco Corporation 8.35 -0.25 -2.91 152,460
POL PolyOne Corporation 32.03 0.20 0.63 631,568
NWPX Northwest Pipe Company 17.76 0.23 1.31 98,996
KRRSF Kettle River Resources Ltd. n/a n/a n/a 0

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