Published on 15 Jan 2024 on Insider Monkey via Yahoo Finance

10 Small-Cap Energy Stocks with Strong Returns

In this piece, we will take a look at ten small-cap energy stocks with strong returns. If you want to skip our overview of small cap investing and the energy sector, then you can take a look at the 5 Small-Cap Energy Stocks with Strong Returns.

When it comes to trading stocks, there are several sectors that an investor can target depending on strategy. Primarily, stocks can be divided between small caps and large caps on the basis of their market capitalization. Stocks with a market capitalization lower than $2 billion are small caps and all others are large caps. Of course, there are other stock categorizations based on market capitalization as well. For instance, within the small cap stock segment, those stocks that have a market value lower than $300 million are called micro cap stocks and those valued lower than $50 million are nano caps. Similarly, stocks valued between $2 billion and $2 billion are mid caps, followed by large caps and mega caps such as Microsoft Corporation (NASDAQ:MSFT) and of course, Apple Inc. (NASDAQ:AAPL).

Continuing with our initial categorization of all stocks into either large cap or small cap allows a deeper look at the merits and demerits of investing in both. Large cap stocks, and particularly the mega caps and well footed oil companies and stocks such as Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), are preferred and suitable when the economy is in trouble. This is because even though mega oil cap stocks generally trend lower if economic growth is stuttering, their fortress balance sheets provide investors with security in knowing that once the macroeconomic clouds have dissipated, the company will still be there to meet any uptick in demand.