Grab mid cap stocks before the market realizes their growth potential. Then practice what you've learned with our free stock market simulation.
MID CAP STOCKS LIST
Here are some popular mid cap stocks according to Kiplinger:
| Symbol | Company |
| NBIX | Neurocrine Biosciences Inc. |
| LITE | Lumentum Holdings Inc. |
| PZZA | Papa John's International Inc. |
| SBNY | Signature Bank |
| BLDR | Builders FirstSource Inc. |
WHAT ARE MID CAP STOCKS?
To be considered a mid cap stock, a company’s total shares multiplied by their current market share price should fall between $2 and $10 million. This will be their market cap. Mid cap companies are smaller in stature than their blue-chip counterparts but, if picked correctly, could be great growth stocks and yield high profits. Mid cap stocks are an important component of a properly diversified financial portfolio. They respond faster to changes and innovations in the market because they tend to be more specialized and focused on their own niche.
Investing in smaller companies carries additional risk, but, because of their extreme potential for growth, can seriously pay off. If you can get in on the ground floor of a great company before they make it big, you stand to make a huge return on your investment. However, it can be hard to predict greatness with so many start-ups to choose from today. A happy medium exists for some in the middle range, as moderately sized companies are more established but generally have lower growth prospects. These companies have been around at least a few years and they have a longer track record. It is a bit easier to predict whether or not these companies are going to make it big in the long run, so the risk is smaller and the return not as lucrative. When it comes down to it, smaller competitors who can change dynamically to meet market demands can outperform large companies.
FINDING THE BEST MID CAP STOCKS TO BUY
Investors looking to build their portfolio of high quality mid cap stocks should be paying attention to both growth and valuation.
Growth
The most important thing to tick off the checklist when hunting for mid cap stocks is potential for growth. The target company that you choose should have the ability to grow faster than its larger peers in the industry (thus gaining market share)
Undiscovered Territory
The company should be a relatively undiscovered stock and therefore come with a cheaper valuation. Find mid-caps that have low leverage and higher growth profiles that the market has not yet realized.
MID CAP MUTUAL FUNDS
A mid-cap mutual fund is a type of stock fund that invests in companies with mid-sized firms generally ranging from $2 billion to $10 billion in market cap. Most stocks held in a mid cap fund are firms with established businesses – so not exactly small cap – but that are still considered developing companies. These funds arguably present the best of both worlds, as they tend to offer more growth than large cap stocks and less volatility than the small caps.
BEST STOCK NEWSLETTER (November 6, 2021 UPDATE)
The Motley Fool Stock Advisor has won our Award for the Best Stock Newsletter for the last 4 years.
We have been tracking ALL of the Motley Fool stock picks since January 2016. That's over 5 years and over 120 stock picks. As of Friday, Novermber 6, 2021, 19 of their 24 stocks picks from 2020 are up and the average return is 106% compared to the SP500's 50%. Take a look at some other FACTS about their service:
- The average return of their 24 picks from 2019 is up 108% compared to market's 68%; and 20 of those 24 are profitable
- Of their 24 stock picks from 2018, 20 are up, the average return is 248%, and 11 have more than doubled in price
- From 2017, all 24 of their stock picks are up, 12 have more than doubled and the average return is 254%
- And from 2016, 20 of 24 are up, 17 have more than doubled and the average is an amazing 451% ( thanks in part to them picking SHOP)
- So the point is that not every one of their picks goes up, but the longer you hold them, the better they have performed, at least since 2016
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 1,320%
TIP FROM THE AUTHOR: If your portfolio is not up 233% over the last 5 years with 84% profitable trades, then you are investing missing out on big profits. Be pro-active and buy stock tips from this trusted source instead of being re-active and buying stocks that everyone else is buying! A subscription to the Fool will probably be the best investment you ever make. They already have over 1,000,000 subscribers.
Normally the Fool service is priced at $199 per year but they are currently offering the next 12 months for just $99 on THIS NEW SUBSCRIBER PAGE.
WANT THE BEST STOCKS? Over the last 5 years the Motley Fool Picks are up an Average of 233% (3x the SP500)!
TRY THEIR SERVICE NOW for Only $19 & Get Immediate Access to All Their Recent Picks.
GET UP TO $1,000 IN FREE STOCK
WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT
Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.
Here's the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $250. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $250. Click here to learn more about this Special Robinhood offer.
(before it's too late)