We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Top 5 Mid-Cap Stocks Likely to Turn Large-Cap in 2024
Read MoreHide Full Article
Wall Street has seen an impressive turnaround in 2023 after a highly disappointing 2022. Year to date, the three major stock indexes — the Dow, the S&P 500 500 and the Nasdaq Composite — have rallied 9%, 19% and 36%, respectively. The mid-cap benchmark — the S&P 400 index — also advanced 7.4% year to date.
Within the mid-cap space, a handful of stocks (market capital > $9 billion< $10 billion) have the potential to become large-cap in 2024. Investment in these stocks with a favorable Zacks Rank should provide handsome returns in 2024.
Why Mid-Cap Stocks?
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine the attractive attributes of both small and large-cap stocks. Top-ranked, mid-cap stocks have a high potential to enhance their profitability, productivity, and market share. These may also become over time.
If the economic growth slows down due to any unforeseen internal or external disturbance, mid-cap stocks will be less susceptible to losses than their large-cap counterparts owing to less international exposure.
On the other hand, if the economy continues to thrive, these stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to the capital markets.
Our Top Picks
We have narrowed our search to five mid-caps that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days. Finally, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
DaVita Inc. (DVA - Free Report) has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas, which is promising. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 2.7% and 4.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 9.1% over the past 30 days.
XPO Inc. (XPO - Free Report) is a provider of asset-based less-than-truckload transportation with proprietary technology that moves goods efficiently. XPO provides freight transportation services in the United States, the rest of North America, France, the United Kingdom, the rest of Europe and internationally. XPO operates in two segments, North American LTL and European Transportation.
XPO has an expected revenue and earnings growth rate of 5.8% and 26%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.4% over the past 30 days.
Duolingo Inc. (DUOL - Free Report) operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. DUOL also provides a digital language proficiency assessment exam.
Duolingo has an expected revenue and earnings growth rate of 29.3% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days.
EMCOR Group Inc.’s (EME - Free Report) U.S. businesses remained solid backed by strong end-market demand and top-tier execution initiatives. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
EME’s remaining performance obligations, as of Sep 30, 2023, were $8.64 billion, up 21.7% year over year. Owing to these tailwinds, EME raised its revenues and earnings outlook for 2023.
EMCOR Group has an expected revenue and earnings growth rate of 5% and 1.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.3% over the past 30 days.
Assurant Inc. (AIZ - Free Report) is focused on inorganic and organic growth strategies, which bode well for growth. For 2023, AIZ expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-to high-teens. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums.
Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. AIZ plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividends.
Assurant has an expected revenue and earnings growth rate of 4% and 3.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Top 5 Mid-Cap Stocks Likely to Turn Large-Cap in 2024
Wall Street has seen an impressive turnaround in 2023 after a highly disappointing 2022. Year to date, the three major stock indexes — the Dow, the S&P 500 500 and the Nasdaq Composite — have rallied 9%, 19% and 36%, respectively. The mid-cap benchmark — the S&P 400 index — also advanced 7.4% year to date.
Within the mid-cap space, a handful of stocks (market capital > $9 billion< $10 billion) have the potential to become large-cap in 2024. Investment in these stocks with a favorable Zacks Rank should provide handsome returns in 2024.
Why Mid-Cap Stocks?
Investment in mid-cap stocks is often recognized as a good portfolio diversification strategy. These stocks combine the attractive attributes of both small and large-cap stocks. Top-ranked, mid-cap stocks have a high potential to enhance their profitability, productivity, and market share. These may also become over time.
If the economic growth slows down due to any unforeseen internal or external disturbance, mid-cap stocks will be less susceptible to losses than their large-cap counterparts owing to less international exposure.
On the other hand, if the economy continues to thrive, these stocks will gain more than small caps due to established management teams, a broad distribution network, brand recognition and ready access to the capital markets.
Our Top Picks
We have narrowed our search to five mid-caps that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days. Finally, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
DaVita Inc. (DVA - Free Report) has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas, which is promising. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 2.7% and 4.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 9.1% over the past 30 days.
XPO Inc. (XPO - Free Report) is a provider of asset-based less-than-truckload transportation with proprietary technology that moves goods efficiently. XPO provides freight transportation services in the United States, the rest of North America, France, the United Kingdom, the rest of Europe and internationally. XPO operates in two segments, North American LTL and European Transportation.
XPO has an expected revenue and earnings growth rate of 5.8% and 26%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.4% over the past 30 days.
Duolingo Inc. (DUOL - Free Report) operates as a mobile learning platform in the United States, China, the United Kingdom, and internationally. DUOL offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. DUOL also provides a digital language proficiency assessment exam.
Duolingo has an expected revenue and earnings growth rate of 29.3% and more than 100%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days.
EMCOR Group Inc.’s (EME - Free Report) U.S. businesses remained solid backed by strong end-market demand and top-tier execution initiatives. EME is witnessing resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and across the EV value chain, which sparked its growth momentum.
EME’s remaining performance obligations, as of Sep 30, 2023, were $8.64 billion, up 21.7% year over year. Owing to these tailwinds, EME raised its revenues and earnings outlook for 2023.
EMCOR Group has an expected revenue and earnings growth rate of 5% and 1.5%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.3% over the past 30 days.
Assurant Inc. (AIZ - Free Report) is focused on inorganic and organic growth strategies, which bode well for growth. For 2023, AIZ expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-to high-teens. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums.
Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. AIZ plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividends.
Assurant has an expected revenue and earnings growth rate of 4% and 3.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the past seven days.