You know the old saying: Bigger isn’t always better.
That’s the case in many areas.
And it might be most true in the stock market.
In today’s episode of The Stock Power Podcast, I share a small 100-rated Power Stock that produces oil and gas in the U.S.
And it’s set to profit due to its size.
The Case for Small-Cap Stocks
One of the factors we use to rank stocks in our Stock Power Ratings system is size.
The rationale is that small-cap stocks tend to grow faster than larger ones.
Small-cap stocks offer higher growth potential but come with more risk.
It’s simple: Higher risk means higher reward.
But that’s where the other factors of Stock Power Ratings come in. They help us identify smaller stocks with solid fundamentals — and that translates to less risk.
This week’s Power Stock is a small ($257 million market cap) oil and gas company in the U.S.:
- It earns a “Strong Bullish” 100 out of 100 on our Stock Power Ratings system!
- The company has a one-year annual sales growth rate of 233.1%.
- The stock is currently trading just 10% off its 52-week high.
Let’s see why this company is setting the stage for more gains in the future.
The Case for Oil and Gas Stocks
There is no denying the market is down.
But some sectors of the market have still done well:
This chart compares the Dow Jones U.S. Oil & Gas Index with the S&P 500.
Since the start of the year, the S&P 500 is down by almost a quarter.
But oil and gas is up 44%!
In this episode of The Stock Power Podcast, I combine these two trends: small-cap performance with a strong sector.
The stock I'm going to share earns a 100 overall rating!
Listen below to see why we expect it to beat the broader market by 3X over the next 12 months.
The Stock Power Podcast
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He's the host of our podcast, The Stock Power Podcast. He's also a certified Capital Markets and Securities Analyst through the Corporate Finance Institute. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.
P.S. Got a comment about Stock Power Daily or The Stock Power Podcast? Reach out to my team and me at Feedback@MoneyandMarkets.com!