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Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Here is how SM Energy (SM) and Kosmos Energy (KOS) have performed compared to their sector so far this year.
Does Kosmos Energy (KOS) have what it takes to be a top stock pick for momentum investors? Let's find out.

Kosmos Energy’s 29.1% return over the past six months has outpaced the S&P 500 by 15.8%, and its stock price has climbed to $2.99 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
