Top Mid-Cap Stocks For Q2 2022

2022-04-24 09:28:08 By : Mr. Tim Chen

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

Mid-cap stocks are companies with market capitalizations generally between $2 billion and $10 billion. As implied, in size they fall in the middle of small-cap and large-cap stocks. While mid-cap companies are generally larger than small-cap stocks, they can experience volatility in times of market turbulence, which may temporarily drop their market caps far below $2 billion or send them dramatically above $10 billion. Investors often look to mid-cap stocks as being more stable than small-caps, while providing stronger growth opportunities compared with large-cap companies. Mid-cap stocks are seen as a key tool in portfolio diversification because they provide a balance of growth and stability. Some of the stocks classified as mid cap include Park Hotels & Resorts Inc., DCP Midstream LP, and Range Resources Corp.

Mid-cap stocks, as represented by the benchmark S&P MidCap 400 Index, have underperformed the broader market. The index has provided 1-year trailing total returns of 0.9%, behind the Russell 1000's total return of 10.2%. These market performance numbers and the statistics in the tables below are as of April 5, 2022.

Here are the top three mid-cap stocks with the best value, fastest growth, and most momentum.

These are the mid-cap stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

These are the top mid-cap stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

These are the mid-cap stocks that had the highest total return over the last 12 months.

The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

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