7 Best Mid Cap Stocks to Buy Now

Many investors gravitate to large-cap stocks because the deep pockets and established operations of a massive company provide a degree of certainty. Sure, it’s hard for some of the most dominant companies to grow their customer base significantly if they already operate in saturated markets. But the reliability these operations offer is more attractive for many investors.

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On the other hand, mid-cap stocks that are slightly smaller may not have the stability of their larger peers, but have a much higher ceiling if they continue to succeed. After all, each of your favorite mega-cap tech stocks started significantly smaller than they are today — and if you could have invested a decade or two ago when they were more modest in size, your portfolio would be impressive indeed.

Of course, not every company will succeed. There is greater risk here, and volatility can be common. But if you’re not afraid of seeking out smaller companies in pursuit of bigger profits, here are some high-flying firms that are among the best mid-cap stocks to buy now:

Stock Sector Market Capitalization
Cava Group Inc. (ticker: CAVA) Consumer discretionary $9.4 billion
Oscar Health Inc. (OSCR) Health care $4.8 billion
Powell Industries Inc. (POWL) Industrial $2.5 billion
Semtech Corp. (SMTC) Technology $2.6 billion
Sweetgreen Inc. (SG) Consumer discretionary $3.5 billion
Viking Therapeutics Inc. (VKTX) Health care $7.2 billion
Zeta Global Holdings Corp. (ZETA) Technology $3.7 billion

Cava Group Inc. (CAVA)

Sector: Consumer discretionary Market value: $9.4 billion

Cava owns and operates a chain of Mediterranean-inspired restaurants under its namesake brand, with more than 300 total stores across the U.S. The company is also increasingly offering its dips, spreads and dressings through grocery stores to supplement its revenue. Well-known across the Mid-Atlantic region after it was founded in Washington, D.C., back in 2006, the Cava brand is branching out in a big way. Analysts expect roughly 20% revenue growth this year and another 19% growth in fiscal 2025. The company is comfortably profitable, too, so it doesn’t have to expand simply to justify red ink.

Oscar Health Inc. (OSCR)

Sector: Health care Market value: $4.8 billion

Oscar — formerly known as Mulberry Health — is not as well known as larger health insurance companies in the U.S. But its individual and small-group market plans are seeing widespread adoption as the company continues to expand, thanks in part to the continued popularity of “Obamacare” insurance marketplaces. The company is now up to more than 1.4 million members across 20 states, generating nearly $6 billion in annual revenue.

Those figures are growing, too, with first-quarter numbers reported at the beginning of May showing a 46% increase in revenue. It’s hard to imagine that kind of growth from a larger insurance company, so investors looking for growth in this corner of the market should consider a mid-cap stock like Oscar if they want a higher ceiling than the leading entrenched players.

Powell Industries Inc. (POWL)

Sector: Industrial Market value: $2.5 billion

A highly specialized electrical components manufacturer, Powell designs and sells custom-engineered systems including electrical houses, circuit breakers, motor control centers and other gear. In an age where alternative energy sources and “smart grid” technology are both on the rise, Powell is seeing demand for its services across several business lines. This demand is most clearly evident in its recent earnings report, which showed a stunning increase of more than five percentage points in margins. The company also posted a roughly 49% jump in its top line, and is on pace for a roughly 30% revenue jump this fiscal year based on current projections. Shares have more than doubled this year thanks to these strong results and a strong outlook for the rest of 2024.

[See: 10 Best Health Care Stocks to Buy for 2024]

Semtech Corp. (SMTC)

Sector: Technology Market value: $2.6 billion

Semtech is a specialized semiconductor firm that designs and manufactures “signal integrity products” — meaning it supports the infrastructure that is now ubiquitous in our world of connected and cloud-based devices. Its flagship technology is LoRa, a long-range networking initiative to support the “Internet of Things,” with nearly 200 million different devices using this functionality in some fashion.

The company is ramping up profitability in a big way: In fiscal 2024, Semtech reported earnings per share (EPS) of 14 cents — but analysts expect EPS of 63 cents in fiscal 2025 and $1.54 in fiscal 2026. A lot can happen over the next 24 months, but this impressive growth projection has caused many investors to sit up and take notice. SMTC has rallied 85% so far this year as a result.

Sweetgreen Inc. (SG)

Sector: Consumer discretionary Market value: $3.5 billion

Sweetgreen is a healthy dining option that has caught on with a lot of consumers thanks to its fresh and flavorful ingredients in its salads and bowls. The stock has been on a roll lately thanks to strong fundamentals, including a 26% jump in revenue in its most recent quarterly report. What’s more, same-store sales were up 5% over the prior year to show it’s not just store expansion driving rapid growth.

Shares are up about 180% in 2024 thanks to these great results, but keep in mind that this is still a small and risky bet with a mere 140 or so total locations established to date. Consumer tastes can be fickle and growth is not guaranteed, but past performance shows this is a mid-cap stock with big-time momentum.

Viking Therapeutics Inc. (VKTX)

Sector: Health care Market value: $7.2 billion

Viking is one of several pharmaceutical companies vying for a piece of the anti-obesity medicine market. Its leading treatment is currently working through a mid-stage study, and it has shown meaningful success across multiple dose levels. The stock gapped up in March on early results, with shares more than triple where they started the year at present. It’s worth noting that VKTX currently doesn’t have much revenue to speak of and is hemorrhaging cash as it races toward what it hopes is approval to market its products. These kinds of development-phase drug makers are always at risk of significant volatility and carry elevated risk. However, if you want to get in on the ground floor of a potential obesity blockbuster, VKTX is a mid-cap stock to watch.

Zeta Global Holdings Corp. (ZETA)

Sector: Technology Market value: $3.7 billion

There are a lot of fancy artificial-intelligence-related plays out there, but Zeta is a stock that can tie the promise of this emerging technology directly to the bottom line. A data-driven consumer intelligence and marketing automation software firm, Zeta tries to help businesses predict consumer intent — and put the right products in front of them at the right price. The company just posted 24% revenue growth in its latest quarter, and a 51% increase in cash flow. As a result, this mid-cap tech stock raised its guidance for the rest of 2024 as it looks to continued success in the months ahead.

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7 Best Mid Cap Stocks to Buy Now originally appeared on usnews.com

Update 05/29/24: This story was previously published at an earlier date and has been updated with new information.

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