16 Best Mid-Cap Stocks To Buy Now

Hamna Asim
23 min read

In This Article:

In this article, we discuss 16 best mid-cap stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Mid-Cap Stocks To Buy Now. 

Mid-cap stocks have a market capitalization between $2 billion to $10 billion, and these firms are considered to have established operations and increasing profits. They offer a desirable balance between stability and growth prospects, providing investors with higher growth prospects compared to large-cap firms, but with more stability and a lower risk profile than small-cap companies. 

According to Hennessy Funds, data shows that in any given one-year rolling period since 2000, small-, mid-, and large-cap stocks have outperformed 41%, 35%, and 25% of the time, respectively. Additionally, over the past 20 years, mid-cap stocks outperformed small- and large-cap stocks 67% of the time in any given 10-year period. The data also indicates that over the 20-year period ending December 31, 2022, investors in mid-cap stocks had a higher return and lower risk compared to investors in small-cap stocks. While mid-cap stocks had higher risk than large-cap stocks, the returns for mid-cap investors were still higher over the same period. The S&P MidCap 400 index reflects the trend mentioned earlier, as it has outperformed both the S&P 500 and the S&P SmallCap 600 for the majority of the past 20 years.

On December 29, 2022, Chris Harvey, Wells Fargo Securities head of equity strategy, told CNBC that the firm is bullish on the services sector in 2023. Consumers will move from spending on goods to spending on experiences, as per Harvey. He believes that the environment in 2023 will be more conducive to growth, and he is leaning towards mid-cap growth plays. 

Mid-cap companies may be overlooked by the market, which can provide opportunities for investors to invest in undervalued stocks with significant growth potential. Some of the best mid-cap stocks to buy include WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Bill.com Holdings, Inc. (NYSE:BILL), and Antero Resources Corporation (NYSE:AR). 

Our Methodology 

We scanned Insider Monkey’s database of holdings of 920 elite hedge funds tracked as of the end of the third quarter of 2022 and picked the top 16 mid-cap stocks — companies which have market capitalizations of between $2 billion and $10 billion — as of February 6. That means the stocks mentioned in the article are the most popular mid-cap stocks among the elite hedge funds operating in financial markets. The list is arranged in ascending order of the number of hedge fund holders in each firm. 

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