12 Most Profitable Mid-Cap Stocks Now
In this article, we will discuss the 12 Most Profitable Mid-Cap Stocks Now. You can skip our overview and go directly to the 5 Most Profitable Mid-Cap Stocks Now.
Mid-cap stocks are shares in companies that have a market capitalization ranging from $2 billion to $10 billion. These stocks possess both the characteristics of growth as well as value stocks which makes them appealing to some investors. However, mid-cap stocks often go un-noticed as investors largely remain focused on large-cap stocks who have a big impact on the market. Hence, it may come as a surprise to many that mid-cap stocks have outperformed the broader market over the past several years. From Mar 31, 2020 to Mar 31, 2022, mid-cap stocks generated an average annualized return of 39.2% compared to the average annualized return of 32.0% of large-cap stocks. DCP Midstream, LP (NYSE:DCP), and Park Hotels & Resorts Inc. (NYSE:PK) are some examples of mid-cap stocks.
Investors and analysts are interested in mid-cap companies as they have the potential to provide high returns with lower risk characteristics compared to small-cap stocks. A case study conducted by Ryan Lynch in 2018 found that mid-cap firms can better adapt to market changes when compared to larger companies, and are less likely to fail during economic downturns when compared to small-cap firms. Therefore, investing in mid-cap stocks can potentially provide investors with higher returns while minimizing the risk of their investment. There are several indexes that track mid cap stocks, including S&P MidCap 400 Index, Russell Midcap Index, MSCI USA Mid Cap Index, and FTSE 250 Index.
In a research report released in 2020, Wespath stated some risks associated with investing in mid-cap stocks. These include higher volatility and underperformance during periods of slow economic growth. However, despite their risk attributes, mid cap stocks remain important to investors who are looking for diversification in their stock portfolio or higher returns with a higher risk appetite compared to large-cap companies.
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Our Methodology
To come up with 12 most profitable mid-cap stocks now, we have used stock screeners available at Seeking Alpha to screen profitable stocks with a market capitalization between $2 and $10 billion. We then proceeded to rank the companies in ascending order of their Net Income TTM.
12 Most Profitable Mid-Cap Stocks Now
12. Azenta, Inc. (NASDAQ:AZTA)
Net Income TTM: $2.08 billion
Azenta, Inc. (NASDAQ:AZTA) is a life science corporation based in the United States. The company’s reportable segments include life sciences services and life sciences products. Azenta, Inc. (NASDAQ:AZTA) has a comprehensive portfolio of services and products that span across areas of automated storage platforms, the life cycle of samples from procurement and sourcing, consumables, genomic services, data software, and informatics, and solutions for sample management. The company’s clientele includes research institutes, biotech companies, biorepositories, and pharmaceutical companies.
On February 9, 2023, David Saxon, an analyst at Needham, reduced his price target on Azenta, Inc. (NASDAQ:AZTA) to $68 from $78 while keeping a Buy rating on the company’s stock. According to the analyst, the management is optimistic about the company's organic growth accelerating in the second half of the fiscal year 2023 despite a shortfall in the first quarter revenue.
In addition to Azenta, Inc. (NASDAQ:AZTA), Jackson Financial Inc. (NYSE:JXN), Liberty Global plc (NASDAQ:LBTYA), and Federal National Mortgage Association (OTC:FNMA) are included in our list of 12 most profitable mid-cap stocks now.
According to Insider Monkey’s database, 26 hedge funds held stakes worth $344 million in Azenta, Inc. (NASDAQ:AZTA) in Q4 2022, compared to 22 funds in the prior quarter with a stake worth $170 million.
11. Woori Financial Group Inc. (NYSE:WF)
Net Income TTM: $2.12 billion
Headquartered in Seoul, South Korea, Woori Financial Group Inc. (NYSE:WF) is one of the largest banks in South Korea. The operating segments of the company include banking, investment banking, capital, credit card, and other segments. Woori Financial Group Inc. (NYSE:WF) offers various financial services, including deposit services, settlement services, loan services, bill services, and international and online banking. These services are offered to individuals, corporate, and institutional customers. Woori Financial Group Inc. (NYSE:WF) operates in 24 countries across the globe.
As per Insider Monkey’s database, 4 hedge funds held stakes worth $86 million in Woori Financial Group Inc. (NYSE:WF) in Q4 2022, compared to 3 funds in the prior quarter with a stake worth $84 million.
10. ICL Group Ltd (NYSE:ICL)
Net Income TTM: $2.16 billion
ICL Group Ltd (NYSE:ICL) is an Israeli corporation that operates as a chemicals and specialty minerals producer. The company operates in four segments which include industrial products, phosphate solutions, potash, and innovative agricultural solutions (IAS). With major phosphate, bromine, and potash natural resources, ICL Group Ltd (NYSE:ICL) serves various industries, including agriculture, food, paints and coatings, waste and water treatment, energy, and textiles. ICL Group Ltd (NYSE:ICL) also produces inorganic flame retardants, which are being implemented by construction sites, residencies, and automotive manufacturers as an additional safety feature in vehicles.
On February 15, 2023, ICL Group Ltd (NYSE:ICL) announced its fourth-quarter 2022 results. The company reported a revenue of $2.09 billion, falling short of market estimates by $84.03 million. The Normalized EPS stood at $0.28, missing market estimates by $0.01.
According to Insider Monkey’s database, 18 hedge funds held stakes worth $124 million in ICL Group Ltd (NYSE:ICL) in Q4 2022, compared to 17 funds in the prior quarter with a stake worth $139 million.
9. United States Steel Corporation (NYSE:X)
Net Income TTM: $2.52 billion
Founded in 1901, United States Steel Corporation (NYSE:X) is an American steel-manufacturing company. The company’s operating segments comprise North American Flat-Rolled (Flat-Rolled), U. S. Steel Europe (USSE), Mini Mill, and Tubular Products (Tubular). United States Steel Corporation (NYSE:X) manufactures and provides various steel products such as slabs, sheets, strip mill plates, tin mill products, electrical products, etc. These products are primarily offered to automotive, electronics, container, and construction industries. Furthermore, the company offers tubing and mechanical tubing products and electrical resistance welded (ERW) steel casing, mainly for the gas, oil, and petrochemical industry.
On February 2, 2023, United States Steel Corporation (NYSE:X) reported its fourth-quarter 2022 results. The revenue was reported to be $4.34 billion, surpassing analysts’ estimates by $330.06 million. The Normalized EPS stood at $0.87, beating analysts’ expectations by $0.24.
As per Insider Monkey’s database, 29 hedge funds held stakes worth $744 million in United States Steel Corporation (NYSE:X) in Q4 2022, compared to 29 funds in the prior quarter with a stake worth $724 million.
8. Gerdau S.A. (NYSE:GGB)
Net Income TTM: $2.55 billion
Gerdau S.A. (NYSE:GGB) is among the top steel manufacturers in Brazil. The company provides special steel and long steel products, including special bar quality (SBQ) products, beams, rebar, merchant bar, piling, semi-finished, and special and value-added products. The company also engages in the purchasing, processing, packaging, and sale of all grades of non-ferrous and ferrous scrap metal. Gerdau S.A. (NYSE:GGB) offers its products to various industries, including agriculture, construction, automotive, energy, distribution, and mining. Gerdau S.A. (NYSE:GGB) operates steel manufacturing facilities in 10 countries across the globe.
According to Insider Monkey’s database, 13 hedge funds held stakes worth $375 million in Gerdau S.A. (NYSE:GGB) in Q4 2022, compared to 15 funds in the prior quarter with a stake worth $200 million.
7. Avis Budget Group, Inc. (NASDAQ:CAR)
Net Income TTM: $2.76 billion
Headquartered in New Jersey, United States, Avis Budget Group, Inc. (NASDAQ:CAR) provides car rental and mobility solution services. The company provides its services through brands including Avis, Budget Rent a Car, Budget Truck Rental, and Zipcar. Avis Budget Group, Inc. (NASDAQ:CAR) also operates various local rental companies in South America, Europe, and Australasia, such as Maggiore, France Cars, Payless, and Apex Car Rentals.
On February 13, 2023, Avis Budget Group, Inc. (NASDAQ:CAR) reported its fourth-quarter results for the fiscal year 2022. The company’s revenue stood at $2.77 billion, beating market estimates by $113.30 million. The Normalized EPS stood at $10.46, surpassing market estimates by $3.47.
As per Insider Monkey’s database, 35 hedge funds held stakes worth $3.5 billion in Avis Budget Group, Inc. (NASDAQ:CAR) in Q4 2022, compared to 34 funds in the prior quarter with a stake worth $3.2 billion.
6. PBF Energy Inc. (NYSE:PBF)
Net Income TTM: $2.88 billion
PBF Energy Inc. (NYSE:PBF) is an American petroleum refiner. The company engages in refining and supply of unbranded petroleum products. The operating segments of the company include refining and logistics. PBF Energy Inc. (NYSE:PBF) operates a total of 6 refineries in Delaware City, Paulsboro, Ohio, Louisiana, and California. Moreover, the company operates a pipeline network of 23.4 miles that transports distillates fuel and gasoline. The product line of PBF Energy Inc. (NYSE:PBF) comprises clean fuel, lubricants, and liquified petroleum gas (LPG).
On February 16, 2023, PBF Energy Inc. (NYSE:PBF) announced its fourth-quarter 2022 results. The company reported a revenue of $10.85 billion, exceeding Wall Street’s estimates by $1.14 billion. The Normalized EPS stood at $4.41, missing market expectations by $0.55.
According to Insider Monkey’s database, 33 hedge funds held stakes worth $760 million in PBF Energy Inc. (NYSE:PBF) in Q4 2022, compared to 32 funds in the prior quarter with a stake worth $508 million.
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Disclosure: None. 12 Most Profitable Mid-Cap Stocks Now is originally published on Insider Monkey.
