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5 Mid-Cap Stocks to Buy on Solid Long-Term Earnings Growth Potential
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Key Takeaways
Five mid-cap stocks are highlighted for strong long-term EPS growth and recent estimate revisions.
PATH, LYFT, SHAK, WING, and DY each exceed the broad-market index's EPS growth rate of 12.6%.
Investment in mid-cap stocks is often recognized as an intelligent portfolio diversification strategy.
Stocks that have seen positive earnings estimate revisions are generally attractive to investors. Moreover, a combination of these stocks along with a top Zacks Rank, should be more lucrative as this combo has the potential for strong stock price appreciation in the near future.
Similarly, companies that have a strong long-term (3 to 5 years) earnings growth rate should provide a steady return over a long period. Investors should start investing in these stocks in a systematic way for lucrative wealth creation in the long term.
A combination of solid long-term earnings growth rate along with a top Zacks Rank, should be more lucrative as this combo has the potential for strong stock price appreciation in the long term. Each of these stocks currently carries a long-term earnings per share (EPS) growth rate well above the long-term earnings growth rate of the broad-market index — the S&P 500.
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 large caps over time.
If 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 their lower 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.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
UiPath Inc.
Zacks Rank #2 UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.
The PATH platform's embedded AI (artificial intelligence), ML (machine language), and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs.
UiPath has an expected revenue and earnings growth rate of 8.5% and 5.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the last 30 days. PATH has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Lyft Inc.
Zacks Rank #2 Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. LYFT operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. LYFT’s autonomous vehicle-related ambitions bode well. Lyft's Price Lock feature is performing better than expected.
LYFT also benefits from an uptick in driver supply. Highlighting the improvement in the ride share market, for second-quarter 2025, Lyft anticipates year-over-year rides growth in the mid-teens on the back of industry-leading service levels and strong rider and driver growth and engagement.
Lyft has an expected revenue and earnings growth rate of 12.7% and 16.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.9% over the last 60 days. LYFT has a long-term EPS growth rate of 20.7% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Shake Shack Inc.
Zacks Rank #2 Shake Shack owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. SHAK offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products.
SHAK is benefiting from robust same-shack sales, digital initiatives and unit expansion. Also, the emphasis on enhanced operations, innovative menu offerings, targeted promotions and expanded digital networks bodes well.
Management remains optimistic about the licensing segment, citing strong global partner support and significant room for continued growth. Development efforts for 2025 are moving faster than initially expected, with Shake Shack now planning to open 45 to 50 company-operated Shacks this year.
Additionally, SHAK is investing in data and guest recognition tools to create more tailored marketing strategies, aiming to drive higher engagement and conversion rates going forward. SHAK’s efforts to enhance guest engagement and brand visibility through effective marketing strategies are supporting its performance in a competitive market.
Shake Shack has an expected revenue and earnings growth rate of 15.6% and 45.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% in the last 60 days. SHAK has a long-term EPS growth rate of 31.6% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Wingstop Inc.
Zacks Rank #2 Wingstop franchises and operates restaurants. WING’s operating segment consists of the Franchise and Company segments. WING offers classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors.
Wingstop has an expected revenue and earnings growth rate of 16.8% and 6.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 30 days. WING has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Dycom Industries Inc.
Zacks Rank #1 Dycom Industries is a specialty contracting firm operating in the telecom industry. DY provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.
DY is benefiting from the execution of fiber-to-the-home programs, maintenance and operations services, and contributions from fiber infrastructure projects for hyperscalers. Owing to the favorable demand outlook and the upbeat fiscal first-quarter results, DY raised its revenue outlook for fiscal 2026.
Although customer concentration and tariff-related uncertainties may pose risks to project costs and planning, tailwinds like contract revenues are expected to counter DY’s risks to a great extent.
Dycom Industries has an expected revenue and earnings growth rate of 13.7% and 12.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% in the last 30 days. DY has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
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5 Mid-Cap Stocks to Buy on Solid Long-Term Earnings Growth Potential
Key Takeaways
Stocks that have seen positive earnings estimate revisions are generally attractive to investors. Moreover, a combination of these stocks along with a top Zacks Rank, should be more lucrative as this combo has the potential for strong stock price appreciation in the near future.
Similarly, companies that have a strong long-term (3 to 5 years) earnings growth rate should provide a steady return over a long period. Investors should start investing in these stocks in a systematic way for lucrative wealth creation in the long term.
Here, we recommend five such mid-cap stocks with a favorable Zacks Rank. These are: UiPath Inc. (PATH - Free Report) , Lyft Inc. (LYFT - Free Report) , Shake Shack Inc. (SHAK - Free Report) , Wingstop Inc. (WING - Free Report) and Dycom Industries Inc. (DY - Free Report) . Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A combination of solid long-term earnings growth rate along with a top Zacks Rank, should be more lucrative as this combo has the potential for strong stock price appreciation in the long term. Each of these stocks currently carries a long-term earnings per share (EPS) growth rate well above the long-term earnings growth rate of the broad-market index — the S&P 500.
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 large caps over time.
If 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 their lower 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.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
UiPath Inc.
Zacks Rank #2 UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.
The PATH platform's embedded AI (artificial intelligence), ML (machine language), and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs.
UiPath has an expected revenue and earnings growth rate of 8.5% and 5.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the last 30 days. PATH has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Lyft Inc.
Zacks Rank #2 Lyft operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. LYFT operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. LYFT’s autonomous vehicle-related ambitions bode well. Lyft's Price Lock feature is performing better than expected.
LYFT also benefits from an uptick in driver supply. Highlighting the improvement in the ride share market, for second-quarter 2025, Lyft anticipates year-over-year rides growth in the mid-teens on the back of industry-leading service levels and strong rider and driver growth and engagement.
Lyft has an expected revenue and earnings growth rate of 12.7% and 16.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.9% over the last 60 days. LYFT has a long-term EPS growth rate of 20.7% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Shake Shack Inc.
Zacks Rank #2 Shake Shack owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. SHAK offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products.
SHAK is benefiting from robust same-shack sales, digital initiatives and unit expansion. Also, the emphasis on enhanced operations, innovative menu offerings, targeted promotions and expanded digital networks bodes well.
Management remains optimistic about the licensing segment, citing strong global partner support and significant room for continued growth. Development efforts for 2025 are moving faster than initially expected, with Shake Shack now planning to open 45 to 50 company-operated Shacks this year.
Additionally, SHAK is investing in data and guest recognition tools to create more tailored marketing strategies, aiming to drive higher engagement and conversion rates going forward. SHAK’s efforts to enhance guest engagement and brand visibility through effective marketing strategies are supporting its performance in a competitive market.
Shake Shack has an expected revenue and earnings growth rate of 15.6% and 45.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% in the last 60 days. SHAK has a long-term EPS growth rate of 31.6% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Wingstop Inc.
Zacks Rank #2 Wingstop franchises and operates restaurants. WING’s operating segment consists of the Franchise and Company segments. WING offers classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors.
Wingstop has an expected revenue and earnings growth rate of 16.8% and 6.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 30 days. WING has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.
Dycom Industries Inc.
Zacks Rank #1 Dycom Industries is a specialty contracting firm operating in the telecom industry. DY provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.
DY is benefiting from the execution of fiber-to-the-home programs, maintenance and operations services, and contributions from fiber infrastructure projects for hyperscalers. Owing to the favorable demand outlook and the upbeat fiscal first-quarter results, DY raised its revenue outlook for fiscal 2026.
Although customer concentration and tariff-related uncertainties may pose risks to project costs and planning, tailwinds like contract revenues are expected to counter DY’s risks to a great extent.
Dycom Industries has an expected revenue and earnings growth rate of 13.7% and 12.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% in the last 30 days. DY has a long-term EPS growth rate of 18.4% compared with the S&P 500’s long-term EPS growth rate of 12.6%.