Small-cap stocks hold the potential of higher returns even though they come with greater risk. The ongoing coronavirus vaccine rollout in the United States, and the consequent revival in economic activities, have given small-cap stocks a new lease on life. The outperformance of small-cap stocks has largely been driven by favorable consumer trends.

Small-cap stocks have risen higher than their large-cap counterparts over the past few months. This is evidenced by the Russel 2000 index of small-cap stocks 51.9% gain since November 2020 versus the S&P 500’s 20.6% returns.

Small cap stocks  Blueknight Energy Partners, Ltd. (BKEP), Ocean Bio-chem, Inc. (OBCI), and Live Ventures, Inc. (LIVE) have recorded triple-digit growth over the past year. These companies are continuously working to grow their market shares and we think still have upside.

Blueknight Energy Partners, Ltd. (BKEP)

BKEP is engaged in storage, terminalling, processing, and gathering services for companies that produce crude oil and asphalt products. The company  has operations primarily in the United States. BKEP’s stock has gained 326.4% over the past year to close yesterday’s trading session at $3.07.

The company  recently completed the sale of its crude oil terminalling segment to Enbridge, Inc. for $132 million. BKEP will now focus on operating as a pure play terminalling company that focuses on transportation and infrastructure.

BKEP’s revenue has grown 3.5% year-over-year. The company’s year-over-year capex growth is 28.1%.

BKEP is expected to see  revenue growth of 18.8% in 2021. Its  EPS is estimated to grow 86.7% for the quarter ended March 31, 2021 and 4% per annum over the next five years.

BKEP’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

It has an A grade  for Growth and B for both Value and Quality. In the B-rated MLPs – Other industry, it is ranked #4 of 12 stocks.

In total, we rate BKEP on eight different levels. Beyond what we stated above we have  also given BKEP grades for Sentiment, Stability, and Momentum. Get all the BKEP ratings here.

Ocean Bio-chem, Inc. (OBCI)

OBCI is a market leader in manufacturing and distributing maintenance products for the automotive, marine, and recreational vehicle market. The company  has operations primarily in North America. OBCI has returned 220.5% over the past year to close yesterday’s trading session at $12.5.

OBCI has been awarded a patent for its Disinfectant Pouch Delivery System, which allows for the application of the company’s Performacide product. This new patent is a supplement to existing patents for Performacide.

OBCI’s trailing-twelve-month revenue has grown at a CAGR of 8.8% over the past five years. The company’s trailing-twelve-month EBITDA has grown  at a CAGR of 37.6% over the past three years.

It’s no surprise that OBCI has an overall rating of A,  which equates to Strong Buy in our POWR Ratings system. OBCI has an A grade for Growth and B for Value, Sentiment, and Quality. In the B-rated Consumer Goods industry, it is ranked #1 of 66 stocks.

Click here to see the additional POWR Ratings for OBCI (Momentum and Stability).

Live Ventures, Inc. (LIVE)

LIVE operates as a holding company that focuses on acquiring other middle-market growth companies in various industries in the U.S. The company operates primarily in the manufacturing and services segments. LIVE’s stock price has increased 420.5% over the past year, and its last closing price was $26.44.

LIVE  recently  repaid a $24 million term loan. The company has also acquired Precision Marshall, which is a steel manufacturer, for $31.5 million.

LIVE’s trailing-twelve-month revenue has grown  at a CAGR of 36.1% over the past five years. The company’s trailing-twelve-month EBITDA has grown  at a CAGR of 8.3% over the past three years.

LIVE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary ratings system. LIVE has an A grade  for both Growth and Value and B for Momentum, Sentiment, and Quality. In the 51-stock Outsourcing – Business Services industry, it is ranked #4.

Beyond what we stated above we also have given LIVE grades for Stability. Get all the LIVE ratings here.

The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

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BKEP shares were trading at $3.51 per share on Monday afternoon, up $0.44 (+14.33%). Year-to-date, BKEP has gained 79.71%, versus a 5.41% rise in the benchmark S&P 500 index during the same period.

About the Author: Aaryaman Aashind

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...

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