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Mid-cap stocks sometimes don’t receive much attention, as many are fixated on small-caps’ explosive growth characteristics and large-caps’ stable natures.
Still, they provide a nice blend of growth potential paired with a more established nature, undoubtedly a solid pairing.
In addition, mid-cap stocks are often seen as attractive acquisition targets for larger companies, potentially resulting in a buyout or merger that provides significant gains.
All three have seen their near-term outlook shift positively over the last several months and have delivered market-beating returns. Let’s take a closer look at each.
Wingstop
Wingstop offers cooked-to-order, hand-sauced, and tossed chicken wings and other food. Currently, the stock carries a favorable Zacks Rank #1 (Strong Buy), with earnings expectations increasing across all timeframes.
Image Source: Zacks Investment Research
The company’s growth has been remarkable, and it’s slated to continue; estimates for its current fiscal year (FY23) call for 15% earnings growth on 20% higher revenues. And in FY24, earnings and revenue are forecasted to witness growth of 16% and 14%, respectively.
Wingstop carries a Style Score of “A” for Growth.
Image Source: Zacks Investment Research
Shares may not entice those that are value-focused, with the current 13.8X forward price-to-sales residing on the higher end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth, with WING shares up 40% year-to-date.
Image Source: Zacks Investment Research
Kinsale Capital Group
Kinsale Capital offers various insurance and reinsurance products primarily through two markets: Commercial and Personal. The stock sports a Zacks Rank #2 (Buy), with the revisions trend noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
KNSL shares pay a small dividend, currently yielding a small 0.2% annually. While the yield is undoubtedly on the lower end, the company’s 17% five-year annualized dividend growth rate helps pick up the slack.
Image Source: Zacks Investment Research
Kinsale Capital carries a solid growth profile, with earnings forecasted to soar 36% in its current fiscal year (FY23) and a further 20% in FY24. The stock carries a Style Score of “A” for Growth.
Lantheus
Lantheus Holdings develops, manufactures, sells, and distributes diagnostic medical imaging agents and products to diagnose cardiovascular and other diseases. LNTH carries a Zacks Rank #1 (Strong Buy), with analysts becoming bullish across the board.
Image Source: Zacks Investment Research
The company has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of an impressive 25% across its last four quarters. Just in its latest release, LNTH posted a 14% EPS beat and reported revenue 7% ahead of expectations.
Shares saw a strong reaction post-earnings, just as they did in the prior release.
Image Source: Zacks Investment Research
Like the stocks above, it’s hard to ignore LNTH’s growth trajectory; estimates suggest 32% earnings growth in FY23 and an additional 10% in FY24. Revenue growth is also solid, expected to climb 35% and 10% in FY23 and FY24, respectively.
Bottom Line
Mid-cap stocks are sometimes forgotten, as many investors opt for the stability of large-caps or the ‘more exciting’ small-caps.
Still, they provide growth potential paired with a more established nature, undoubtedly a solid pairing.
All three stocks above – Wingstop (WING - Free Report) , Kinsale Capital Group (KNSL - Free Report) , and Lantheus (LNTH - Free Report) – could be solid considerations for those with an appetite for mid-caps.
All three have witnessed favorable earnings estimate revisions in the near term, indicating optimism from analysts.
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3 Top-Ranked Mid-Caps With Big Growth
Mid-cap stocks sometimes don’t receive much attention, as many are fixated on small-caps’ explosive growth characteristics and large-caps’ stable natures.
Still, they provide a nice blend of growth potential paired with a more established nature, undoubtedly a solid pairing.
In addition, mid-cap stocks are often seen as attractive acquisition targets for larger companies, potentially resulting in a buyout or merger that provides significant gains.
Three mid-caps – Wingstop (WING - Free Report) , Kinsale Capital Group (KNSL - Free Report) , and Lantheus (LNTH - Free Report) – could all be considered.
All three have seen their near-term outlook shift positively over the last several months and have delivered market-beating returns. Let’s take a closer look at each.
Wingstop
Wingstop offers cooked-to-order, hand-sauced, and tossed chicken wings and other food. Currently, the stock carries a favorable Zacks Rank #1 (Strong Buy), with earnings expectations increasing across all timeframes.
Image Source: Zacks Investment Research
The company’s growth has been remarkable, and it’s slated to continue; estimates for its current fiscal year (FY23) call for 15% earnings growth on 20% higher revenues. And in FY24, earnings and revenue are forecasted to witness growth of 16% and 14%, respectively.
Wingstop carries a Style Score of “A” for Growth.
Image Source: Zacks Investment Research
Shares may not entice those that are value-focused, with the current 13.8X forward price-to-sales residing on the higher end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth, with WING shares up 40% year-to-date.
Image Source: Zacks Investment Research
Kinsale Capital Group
Kinsale Capital offers various insurance and reinsurance products primarily through two markets: Commercial and Personal. The stock sports a Zacks Rank #2 (Buy), with the revisions trend noteworthy for its current fiscal year.
Image Source: Zacks Investment Research
KNSL shares pay a small dividend, currently yielding a small 0.2% annually. While the yield is undoubtedly on the lower end, the company’s 17% five-year annualized dividend growth rate helps pick up the slack.
Image Source: Zacks Investment Research
Kinsale Capital carries a solid growth profile, with earnings forecasted to soar 36% in its current fiscal year (FY23) and a further 20% in FY24. The stock carries a Style Score of “A” for Growth.
Lantheus
Lantheus Holdings develops, manufactures, sells, and distributes diagnostic medical imaging agents and products to diagnose cardiovascular and other diseases. LNTH carries a Zacks Rank #1 (Strong Buy), with analysts becoming bullish across the board.
Image Source: Zacks Investment Research
The company has been a big-time earnings performer, exceeding the Zacks Consensus EPS estimate by an average of an impressive 25% across its last four quarters. Just in its latest release, LNTH posted a 14% EPS beat and reported revenue 7% ahead of expectations.
Shares saw a strong reaction post-earnings, just as they did in the prior release.
Image Source: Zacks Investment Research
Like the stocks above, it’s hard to ignore LNTH’s growth trajectory; estimates suggest 32% earnings growth in FY23 and an additional 10% in FY24. Revenue growth is also solid, expected to climb 35% and 10% in FY23 and FY24, respectively.
Bottom Line
Mid-cap stocks are sometimes forgotten, as many investors opt for the stability of large-caps or the ‘more exciting’ small-caps.
Still, they provide growth potential paired with a more established nature, undoubtedly a solid pairing.
All three stocks above – Wingstop (WING - Free Report) , Kinsale Capital Group (KNSL - Free Report) , and Lantheus (LNTH - Free Report) – could be solid considerations for those with an appetite for mid-caps.
All three have witnessed favorable earnings estimate revisions in the near term, indicating optimism from analysts.