Micro-Cap Monday - These 3 Stocks Are Set to Gain Double Digits

High energy! [Logo]( Micro-Cap Monday - These 3 Stocks Are Set to Gain Double Digits Dear Reader, Hi… Big Bill here. Thanks for stopping by. It's good to be back in the saddle after a week off. If you recall, two weeks ago [we talked about the major averages that track small cap stocks]( – the Russell 2000 and the S&P 600. Bill Spencer True Market Insiders I promised to share with you three strong stocks from each index. Today, I'll start making good on that promise. We'll start with stocks from the S&P 600 and we'll make sure they're all drawn from the strongest sector of the market, which I'll come to in a moment. Now, I'm a born and bred New Yorker, but I spent my vacation like a tourist. Reason being, my lady friend Rina, had some friends visiting from Thailand. This was their first trip to the U.S. and the Big Apple, and I wanted them to see the sights. We did and saw as much as we could – a boat trip around Manhattan island… The Freedom Tower… Times Square… A horse-and-carriage ride through Central Park… Famous Ray's Pizza… The highlight, for me, was a trip to the top of the Empire State Building. One-hundred-and-two floors into the sky above the city. That's some view, right? And it looks like that wherever you look. Ten million points of light, and every one of them powered by coal, oil or natural gas. Say what you want about carbon, but without it our way of life disappears into darkness. Here's another breathtaking sight. It's the Sector Relative Strength Matrix from Sector Prophets Pro, our sector research and data platform. You can see that two of the top-ranked sectors are energy-related. They are: Oil Service and Oil & Coal. This past Tuesday our own Chris Rowe [shared some great insights about these sectors and about energy](. Chris said… "The Energy Sector stands out as strong, and with demand in control, even in the face of a temporarily weak stock market. So focus your attention on energy stocks - that's Oil & Coal stocks as well as Oil Service stocks." "Oil & Coal stocks as well as Oil Service stocks are standing like a stone pillar in Rome while the market gets hit. That tells us that even in the face of fear, fund managers are not willing to part with their energy shares."     "Index fund managers focus on groups of stocks as opposed to individual stocks and they're buying energy stocks across the board. Owning one that's a high quality company is just a bonus at this point. Chances are, the typical underperforming energy stock will outperform the stock market averages just by virtue of being a member of the right peer group." When Chris wrote that, Oil Service and Oil & Coal were ranked #3 and #4. They've both since moved up a spot – Oil Service is #2 and Oil & Coal is #3. (On a list of mistakes made by individual investors, "not listening to Chris Rowe" ranks at the top.) When we looked at the S&P 600 index two weeks ago, we said that. "The S&P 600 team is more careful. They have players from all different areas to make sure their team can handle whatever comes their way." Indeed, Energy makes up 5% of the index. Here are three you should keep an eye on as the market turns around. Remember, energy stocks are strong even in the face of a weak market. When the market turns around, they'll likely lead, and seriously outperform. I've added the three stocks into the Portfolio Builder tool from sector focus. We don't have time to delve into this tool. So just know that blue = good (strong). As you can see, all three stocks – NEX, NOG, and PARR are in the Oil Service and Oil & Coal sectors. All three are shown as being "Strong" when compared to their peers in their respective sectors. There's only one soft spot among them – at the moment NEX is underperforming the market. Let's look at these stocks. Houston, TX-based NexTier Oilfield Solutions Inc. (NEX), provides well completion and production services. The company has a $2.5 billion market cap and a P/E ratio of 4.10. This is an industry where the average trailing 12-month P/E is 35.4. (The following are all six-month price charts to make it easier to see the important features.) The stock currently trades near $10.70. Based on the Fibonacci Extension lines I've added to the chart, it could easily reach $15.51 (the 100% Fibo level). That's a gain of 45%. Northern Oil and Gas, Inc. (NOG), out of Minnetonka, Minnesota, is an independent energy company. Its business is to acquire, develop crude oil and natural gas properties in the United States. The stock currently trades near $41. Based on the Fibonacci Extension levels, we could see it go to $52.71 for a gain of 29%. Par Pacific Holdings, Inc. (PARR), also out of Houston, TX, owns and operates energy and infrastructure businesses. It owns and operates three refineries that produce ultra-low sulfur diesel, gasoline, jet fuel and marine fuel. It also leases marine vessels and operates gas stations where you can fill up your belly (with snacks) while you fill up your tank. The stock currently trades near $36. According to the Fibo lines, it "wants" to reach $50.80 for a gain of 41%. Next week is Labor Day, when we get to honor everyone who works to provide us with the good things that give us the good life. I will see you then! The following week, September 11, I'll share three standout small-cap stocks from the Russell 2000. Until then, thank you as always for your time and attention.   [True Trader’s Sunday School #16 - Here’s A VERY Powerful Way to Show Data]( [Why We’re Not Headed Towards a Recession]( [A Tale of Fast Cars and Faster Profits]( [YouTube]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. 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