It sounds like a soft-drink company, but Hi-Crush Partners (HCLP) is racking up profits through the revolution in oil extraction.
This tiny company with a market cap of just $917 million makes the sand used in fracking — and as anyone in an oil-boom state like North Dakota can tell you, business is good.
Shares in Hi-Crush have more than doubled in 2013, and yet they still look to have value in them. Yes, the stock trades at a premium to its own five-year average on a forward basis, but get this: The forward P/E is still less than 12. (The S&P 500, lest we forget trades at nearly 19 times forward earnings.)
The S&P 500, however, has a long-term growth rate of just 9.5%, while Hi-Crush is forecast to grow at a clip of 33%. That makes it a steal. And as a master limited partnership, it has to pay out most of its earnings as dividends. The yield currently stands at a juicy 6.2%.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.