💡 8 Mid-Cap Stocks With Big Growth Potential (Wednesday Bonus List)
Wednesday BONUS Theme List (PAID Version)
💡 8 Mid-Cap Stocks With Big Growth Potential
Published Thursday, April 5th, 7AM ET
NOT financial advice. Info for Education/Research/Entertainment purposes only.
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These bonus lists are typically published on Wednesday but we had to delay to Thursday this week; running the algorithm is a very complex process…
On Wednesdays we apply our Stock Watchlist Weekly proprietary algorithm to a specific theme or category that traders and investors might want to consider. As with the primary Sunday newsletter, these lists include stocks that have been screened through an array of fundamental and technical data points to find the top ones with market-beating short- and long-term potential.
As always, the algorithm is limited to assessing substantial public companies: NYSE or NASDAQ listed; highly liquid; optionable; share price under $500.
💡 This Week’s Analysis: This week we ran the Stock Watchlist Weekly proprietary algorithm specifically on mid-cap stocks, ones that have a market cap between $2 billion and $10 billion. The full stock list is available below, but first, here are are 10 reasons why investors might want to look at mid-cap stocks...
1. Growth Potential: Mid-cap companies generally have greater growth potential than large-cap companies, which may have already reached market saturation. Investing in mid-cap companies can provide investors with the opportunity to capitalize on this growth potential.
2. Undervalued Opportunities: Mid-cap companies are often overlooked by institutional investors and analysts, which can lead to undervalued investment opportunities. This provides investors with the chance to buy into high-quality companies at attractive valuations.
3. Diversification: Mid-cap companies offer diversification benefits within a portfolio, as they tend to have different risk-return profiles compared to large-cap and small-cap companies. This can help reduce overall portfolio risk.
4. Mergers and Acquisitions: Mid-cap companies are often targets for acquisitions by larger companies looking to expand their product lines or market share. Investors in mid-cap companies may benefit from potential takeover premiums in the event of an acquisition.
5. Adaptability and Innovation: Mid-cap companies are typically more agile and adaptable than their large-cap counterparts, allowing them to respond quickly to changing market conditions and exploit new opportunities. This can lead to increased competitiveness and profitability.
6. Dividend Potential: While mid-cap companies may not pay dividends as consistently as large-cap companies, they often have the potential to grow their dividends over time, providing investors with an attractive income stream.
7. Less Volatility: Mid-cap companies tend to have lower volatility than small-cap companies due to their more established market positions and greater financial stability, which can be appealing to risk-averse investors.
8. Economic Resilience: Mid-cap companies can be more resilient during economic downturns compared to small-cap companies, as they often have stronger balance sheets and greater access to capital markets.
9. Higher Risk-Adjusted Returns: Research has shown that mid-cap companies have historically provided higher risk-adjusted returns compared to large-cap and small-cap companies, making them an attractive investment option for long-term investors.
10. Sector Exposure: Investing in mid-cap companies can provide exposure to specific sectors or industries that may be underrepresented in large-cap indices. This can help investors take advantage of emerging trends and growth opportunities within these sectors.
💡 This Week’s List:
MTH - Household Durables
Sector/Industry: Consumer Discretionary / Household Durables
Market Cap: $4.29B
Company Description: Leading homebuilder that designs, constructs, and sells single-family homes and communities across the United States, with a focus on energy-efficient and environmentally-friendly construction.
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