These great stocks are under the radar.
Where can you find the best mid-cap stocks to buy? Everyone knows where to find blue-chip companies that can help you sleep well at night: Just take a gander at the Dow 30. But what if you want a little excitement in your portfolio? And not just excitement — but the opportunity to see your holdings grow a little faster than, say, Procter & Gamble (ticker: PG) can? If at the same time you don’t want to throw caution to the wind and take an all-out flier, mid-cap stocks — worth between $2 billion and $10 billion — are the perfect solution.
Take Two Interactive Software (TTWO)
Shares of video game developer Take-Two Interactive, best known as the studio behind the “Grand Theft Auto” franchise, have been on an absolute run in 2017, but given the bullish megatrend in gaming, TTWO could still be considered one of the best stocks to buy. A recent National Bureau of Economic Research study even questions whether video games are responsible for materially reducing the labor supply. Trading at 19 times earnings, revenue is expected to grow by 44 percent between fiscal 2017 and fiscal 2019 to more than $2.5 billion. With other blockbuster franchises like “Red Dead Redemption” and “Mafia” to its name, TTWO is in good shape.
National Beverage Corp. (FIZZ)
You might not think that the company behind brands like Faygo and Rip It energy drinks would be worthy of inclusion on a “best stocks” list, but here it is. Rest assured, it’s not actually Faygo that makes FIZZ stock so compelling. It’s another one of the company’s brands, LaCroix. The zero-calorie sparkling water has helped spark some much-needed growth; revenue fell 3 percent in 2014 but is expected to grow by 17 percent in 2017. While FIZZ stock has also risen with LaCroix’s success, it’s still attractive. Best case scenario? Coca-Cola Co. (KO) or PepsiCo (PEP) decides to buy them out.
PRA Health Sciences (PRAH)
This company has a great business: It manages clinical trials for other biotech and pharmaceutical companies. It’s been going strong since its founding in 1976 but only went public in late 2014 — at which point it began a steady, remarkable 270-percent rally. As with all mid-cap stocks, there’s some risk of volatility, but the fundamentals of this business are quite good, with earnings per share up 26 percent in 2016 and expected to grow another 25 percent this year. Analysts like this company, with BofA/MerrillLynch initiating PRAH in late June with an “outperform” rating and an $89 price target.
Stamps.com (STMP)
Mailing and shipping services empire Stamps.com has been on a long-term growth trajectory that would make almost any company jealous, and that has made many shareholders rich. In the last 10 years, STMP shares have risen more than tenfold as a flurry of small businesses, consumers, e-commerce merchants and warehouse shippers have taken to the web to print postage and streamline shipping operations. While some e-commerce stocks like Amazon.com (AMZN) and Shopify (SHOP) have also rocketed in recent years, STMP remains a nice under-the-radar play on web shopping.
Dave & Buster’s Entertainment (PLAY)
Dave & Buster’s has found a niche, and it’s a profitable one. Shares of the arcade-themed restaurant chain are up more than 270 percent since its hyped IPO in 2014, a rally that includes a 35 percent uptick in the last year. It’s the niche that PLAY occupies that has made it such a standout and still makes it one of the best mid-cap stocks to buy today. With revenue expected to grow 17 percent this year and 11 percent next year, PLAY stock is still able to grow at a time when many restaurants are struggling, with its emphasis on video games giving it a source of stability and differentiation.
J2 Global (JCOM)
While you might not have heard of this $4 billion internet services company, you’ve certainly heard of some its major brands. Its digital media business includes sites like Askmen.com, IGN and PCMag.com. Still, most of JCOM’s revenue comes from its business cloud services segment, which provides highly demanded services like online backup, email security, customer relationship management and on-demand voice communications. Expected to grow revenue by 31 percent in fiscal 2017, J2 trades at just 13 times forward earnings and pays a 1.8 percent dividend.
Match Group (MTCH)
Online dating is here to stay — which by extension means Match Group is here to stay, too. MTCH is easily the best pure-play online dating stock to buy on Wall Street, with a portfolio of brands, websites and apps that have, over time, helped to define the market itself. Match.com, PlentyOfFish, OkCupid, BlackPeopleMeet and yes, Tinder itself, all operate under the Match Group umbrella. Revenue growth is solid, clocking in at 15 percent in the first quarter, driven by 30 percent growth in international revenue. With only a handful of analysts covering the company, this stock is a diamond in the rough.
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7 Best Mid-Cap Stocks to Buy Now originally appeared on usnews.com
