In this article, we will be taking a look at the 10 best mid-cap stocks to buy according to billionaires.
On July 1, Alan McKnight, the CIO at Regions Wealth Management, appeared on CNBC to explain how his biggest worry is currently centered around uncertainty, which he believes leads to volatility. He pointed to the situation in Washington and ongoing trade policy discussions as examples. McKnight emphasized that businesses and investors desire clarity to allocate capital going forward. However, at the same time, McKnight has shown a lot of interest in mid-cap stocks. He noted that mid-caps had taken a bit longer to gain momentum.
Mid-caps and large-caps were about equal in terms of earnings growth. He argued, however, that the present value discrepancy did not fairly represent the potential for mid-caps in the future. According to McKnight, mid-cap firms with solid balance sheets and earnings growth on par with large-caps should start to be valued more like their large-cap peers as the year went on and into the following year.
McKnight went on to explain his stance, saying that investors would profit if mid-cap valuations rose from 17x earnings to somewhere between 20x and 21x earnings. At the very least, he reasoned, earnings would start to rise, which would raise mid-caps’ valuation and earnings. On the other hand, he thought that large-cap stocks had less potential for valuation growth and had a hard time defending higher prices, especially in some industries like the MAG7.
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Our Methodology
We started by screening for companies with a market capitalization between $2 billion and $10 billion. From this filtered group, we ranked the stocks based on the number of billionaire investors holding positions, using data from the Insider Monkey database. In cases where multiple stocks had the same number of billionaire holders, we used market capitalization as a tiebreaker, giving a higher rank to the company with the larger market cap.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 10 best mid-cap stocks to buy according to billionaires.
10. Mesoblast Limited (NASDAQ:MESO)
Number of Billionaire Holdings: 1
Mesoblast Limited (NASDAQ:MESO) is among the best mid-cap stocks to buy according to billionaires. It is a global leader in developing allogeneic (off-the-shelf) cellular medicines using its proprietary mesenchymal lineage cell technology. The company targets severe inflammatory diseases that lack effective treatment options. Its lead product, Ryoncil (remestemcel-L), became the first and only FDA-approved mesenchymal stromal cell therapy for children with steroid-refractory acute graft versus host disease (GVHD) in March 2025. Following approval, Mesoblast Limited (NASDAQ:MESO) rapidly launched the drug, partnering with over 25 major U.S. transplant centers and securing insurance coverage for over 250 million lives, including mandatory Medicaid coverage in all states.
Ryoncil now benefits from seven years of orphan drug exclusivity and biologic exclusivity until 2036, with intellectual property protection through 2044, effectively limiting competition. The approval marks the foundation of the business’s broader pediatric inflammatory disease franchise, with plans to expand Ryoncil’s use to additional pediatric and adult indications.
The corporation’s manufacturing processes allow scalable production of consistent cell therapies without the need for donor-recipient matching, simplifying access and logistics. The company is also advancing other key candidates: Revascor (rexlemestrocel-L) for ischemic heart failure, which is on track for FDA submission by the end of 2025 under RMAT designation, and a Phase 3 program for rexlemestrocel-L targeting chronic discogenic low back pain, offering a non-opioid alternative for patients.
To support its commercialization phase, Mesoblast Limited (NASDAQ:MESO) strengthened its board with the appointment of Lyn Cobley and was recently added to the S&P/ASX 200 Index. With regulatory momentum, market adoption, and strong IP protection, the company is positioning itself as a major innovator in cellular medicine.
9. BW LPG Limited (NYSE:BWLP)
Number of Billionaire Holdings: 4
BW LPG Limited (NYSE:BWLP), headquartered in Singapore and listed on both the Oslo and New York Stock Exchanges, is the world’s leading owner and operator of liquefied petroleum gas (LPG) vessels. Its fleet of over 50 Very Large Gas Carriers (VLGCs) has a combined capacity of more than 4 million cubic meters. Operating across shipping, trading, and infrastructure, the company is known for pioneering LPG dual-fuel engine retrofits to support low-emission maritime transport.
In May 2025, BW LPG Limited (NYSE:BWLP) announced its withdrawal from the planned onshore LPG terminal project in Navi Mumbai, India, marking a strategic refocus on its core competencies, shipping and trading. Despite exiting this infrastructure investment, the company reaffirmed its commitment to India as a key market for energy transition efforts.
The company has continued strengthening its fleet through the acquisition of 12 modern VLGCs from Avance Gas Holdings, including vessels like BW Capella. Alongside fleet expansion, the corporation is actively retrofitting more than 15 ships with LPG dual-fuel technology, supporting international decarbonization goals and ensuring compliance with tightening emissions regulations.
BW LPG Limited (NYSE:BWLP)’s Product Services segment also showed solid performance in Q2 2025, reporting approximately $15 million in gross trading results. This reflects the company’s success in navigating volatile markets and optimizing integrated trading and shipping operations.
8. WK Kellogg Co (NYSE:KLG)
Number of Billionaire Holdings: 8
WK Kellogg Co (NYSE:KLG), an iconic American cereal maker behind brands like Frosted Flakes and Special K, was spun off from Kellogg’s North American cereal business in 2023 to operate as a standalone company focused on cereals. In July 2025, Ferrero Group, a global confectionery giant known for Nutella and Ferrero Rocher, announced a $3.1 billion deal to acquire WK Kellogg Co (NYSE:KLG), taking the company private. The acquisition includes operations in the US, Canada, and the Caribbean and aligns with Ferrero’s strategy to expand in North America and diversify into the ready-to-eat cereal market.
The deal comes at a pivotal time for the company, which has been working to modernize its operations and revamp its product portfolio. Despite a 2% sales decline in 2024 due to shifting consumer preferences toward healthier and more affordable options, the business grew its EBITDA by 7.5% through a $500 million multi-year supply chain modernization plan. This effort includes a $200 million investment in 2025 to improve production efficiency, reduce waste, and strengthen margins. For investors looking at the best mid-cap stocks poised for transformation, KLG stood out as a promising candidate due to its strategic turnaround initiatives and strong brand recognition.
In parallel, the business has been launching innovation-driven “food platforms,” introducing new on-the-go formats and healthier variants of popular cereals like Blueberry Bran Crunch. These moves aim to reposition the brand in a category facing stagnant growth and evolving consumer habits.
Ferrero’s acquisition is expected to accelerate these efforts by bringing in additional capital, marketing strength, and product innovation expertise. Analysts believe the combination of WK Kellogg Co (NYSE:KLG)’s brand equity and Ferrero’s operational capabilities could reinvigorate the cereal business and improve competitiveness against established players like General Mills. The focus on modernization and health-oriented product expansion sets a strong foundation for future growth under Ferrero’s leadership.
7. Indivior PLC (NASDAQ:INDV)
Number of Billionaire Holdings: 8
Indivior PLC (NASDAQ:INDV) is a pharmaceutical company focused on opioid addiction treatment, particularly through its flagship product SUBLOCADE, a monthly buprenorphine injection. The company has demonstrated strong growth and resilience, recently reaching a 52-week stock high.
In 2025, Indivior PLC (NASDAQ:INDV) underwent a strategic leadership overhaul to strengthen its market position in the U.S., the primary arena for its operations. Joe Ciaffoni took over as CEO, bringing a fresh vision to the company, while Patrick Barry joined as Chief Commercial Officer to drive commercial expansion, especially around SUBLOCADE. Tony Kingsley also joined the board to enhance governance. These changes reflect a focused effort to boost performance and align leadership with U.S. market priorities. In line with this strategy, the business announced its plan to shift its primary listing from the London Stock Exchange to Nasdaq, aiming for greater visibility and investor engagement in the American market.
On the clinical front, Indivior PLC (NASDAQ:INDV) presented new findings at the 2025 CPDD meeting showing that higher buprenorphine exposure may improve treatment outcomes in patients with high fentanyl use, a critical step given the ongoing fentanyl crisis. The FDA also approved updated labeling for SUBLOCADE, further expanding its clinical utility.
6. Disc Medicine, Inc. (NASDAQ:IRON)
Number of Billionaire Holdings: 9
Disc Medicine, Inc. (NASDAQ:IRON) is a clinical-stage biopharmaceutical company focused on developing innovative treatments for serious hematologic diseases by targeting red blood cell biology, particularly heme biosynthesis and iron homeostasis. Its lead candidate, bitopertin, is being developed for erythropoietic protoporphyria (EPP), which is a rare genetic disorder causing severe light sensitivity and liver complications.
In July 2025, the company held a positive pre-New Drug Application (NDA) meeting with the U.S. FDA, receiving strong alignment on its submission plans. Disc Medicine, Inc. (NASDAQ:IRON) is now on track to submit the NDA for bitopertin in October 2025 through the FDA’s accelerated approval pathway, supported by existing clinical data. As there is currently no cure for EPP, and the only approved therapy offers indirect relief by stimulating melanin, bitopertin represents a potentially disease-modifying treatment that could fulfill a major unmet medical need.
Given its innovative pipeline and progress toward regulatory approval, IRON is emerging as one of the best mid-cap stocks in the biotech industry. Beyond bitopertin, the company is also advancing DISC-0974 for anemia in myelofibrosis and DISC-3405, both of which have shown encouraging early clinical results. To support its pipeline and regulatory milestones, the company has secured robust financing that extends its cash runway into 2027.
The upcoming NDA submission is a pivotal milestone for Disc Medicine, Inc. (NASDAQ:IRON), marking its transition from clinical development to the potential launch of its first commercial product. If approved, bitopertin could significantly improve the quality of life for EPP patients and establish the corporation as a leader in rare hematologic disease innovation.
5. OFG Bancorp (NYSE:OFG)
Number of Billionaire Holdings: 9
OFG Bancorp (NYSE:OFG) is among the best mid-cap stocks to buy according to billionaires. It is a financial holding company operating through Oriental Bank and its affiliates, offering banking, lending, wealth management, and insurance services in Puerto Rico and the U.S. Virgin Islands. Founded in 1964, the company has steadily expanded its presence through strategic lending initiatives and digital transformation.
In Q2 2025, OFG Bancorp (NYSE:OFG) reported a 7.08% year-over-year increase in loans, driven by strong performance in commercial, auto, and consumer lending. Loan production totaled $609 million in Q4 2024, highlighting robust activity in Puerto Rico’s mortgage and commercial markets.
A key pillar of OFG’s growth is its “Digital First” strategy, which emphasizes enhancing customer experience and reducing operational costs. This digital push has contributed to the company’s increased market share and competitive positioning, while also supporting profitability. In Q2 2025, earnings per share reached $1.16, beating expectations, with profit margins improving to 32% due to operational efficiency.
OFG Bancorp (NYSE:OFG) also maintains a strong capital position, with nearly $30 million remaining in its share repurchase program, signaling confidence in its financial stability and growth outlook. However, challenges remain, including rising credit loss provisions and economic uncertainties tied to Puerto Rico’s infrastructure and transition from federal to private investment.
4. The Wendy’s Company (NASDAQ:WEN)
Number of Billionaire Holdings: 10
The Wendy’s Company (NASDAQ:WEN), a global fast-food brand known for its fresh ingredients and square-shaped burgers, is undergoing significant leadership changes while pushing forward with aggressive international expansion. Founded in 1969 and based in Dublin, Ohio, the company is adapting to shifting market dynamics by focusing on global growth and operational innovation.
In July 2025, Pete Suerken was appointed President of The Wendy’s Company (NASDAQ:WEN) U.S. operations, succeeding longtime executive Abigail Pringle. Suerken brings over two decades of experience in the restaurant supply chain and previously led the company’s Quality Supply Chain Co-op. His leadership, alongside Interim CEO Ken Cook, is expected to drive stronger operational performance following CEO Kirk Tanner’s departure.
To offset softness in the U.S. market, the business is prioritizing international franchising as a key growth strategy. The company recently signed deals to open 190 new restaurants, 170 in Italy and 20 in Armenia, marking a major milestone in its goal to reach 2,000 international units by 2028. The first Italian locations will debut in Milan by mid-2026. By partnering with regional operators like Your Food S.R.L. and Wen Restaurant LLC, the corporation is strategically entering high-potential markets across Europe and the EMEA region.
Domestically, The Wendy’s Company (NASDAQ:WEN) added 28 new U.S. restaurants in Q1 2025 and is rolling out its “Global Next Gen” design, which features digital menu boards, self-order kiosks, and the FreshAi ordering assistant. These enhancements aim to improve customer experience, boost efficiency, and reduce energy costs.
3. ManpowerGroup Inc. (NYSE:MAN)
Number of Billionaire Holdings: 11
ManpowerGroup Inc. (NYSE:MAN), a global workforce solutions leader operating in over 70 countries, is advancing its role in AI-driven workforce transformation. In May 2025, it launched the Work Intelligence Lab, a research hub leveraging real-time data from more than 70 countries and 22 billion data points. The lab focuses on analyzing AI and automation’s impact on jobs, skills, and hiring to help organizations navigate the evolving labor market.
In July 2025, ManpowerGroup Talent Solutions partnered with recruitment AI leader Carv to embed generative AI into its Recruitment Process Outsourcing (RPO) operations. This integration automates routine tasks, speeds up hiring, and improves candidate experience, enabling recruiters to focus on strategic talent engagement.
With its commitment to innovation and digital transformation, MAN is increasingly seen as one of the best mid-cap stocks for investors looking to capitalize on the intersection of AI and human capital. Despite mixed demand in Q2 2025 amid economic uncertainties, ManpowerGroup Inc. (NYSE:MAN) is committed to using AI and data analytics to anticipate employer and worker needs in a shifting labor market.
By combining big data intelligence with AI-enabled recruitment, ManpowerGroup Inc. (NYSE:MAN) is positioning itself as a leader in workforce digitalization and skills evolution.
2. Hilltop Holdings Inc. (NYSE:HTH)
Number of Billionaire Holdings: 11
Hilltop Holdings Inc. (NYSE:HTH), a Dallas-based financial holding company operating through subsidiaries like PlainsCapital Bank and HilltopSecurities, focuses on community banking, wealth management, and mortgage services.
Hilltop Holdings Inc. (NYSE:HTH)’s recent leadership changes highlight strategic realignment at PlainsCapital Bank. In May 2024, Erik Yohe was appointed Chief Strategy Officer, and Walter Clarke became CFO. Additionally, President and CEO Jerry Schaffner retired, with COO Brian Heflin promoted to President and CAO Pete Villarreal to COO. These internal promotions indicate a focus on continuity and strengthening executive leadership to drive growth and operational efficiency.
Insider activity has shown significant selling, with insiders offloading shares worth about $2.3 million over the past year, including notable sales by Hillel Feinberg, while no insider buying has been reported. This trend may signal caution among insiders, which investors might monitor closely.
Hilltop Holdings Inc. (NYSE:HTH) continues to demonstrate operational strength, ranking No. 33 on S&P Global Market Intelligence’s list of top-performing public banks in 2024, underscoring its competitive position.
1. Triumph Group, Inc. (NYSE:TGI)
Number of Billionaire Holdings: 12
Triumph Group, Inc. (NYSE:TGI) tops our list for being one of the best mid-cap stocks. It is an aerospace company specializing in designing, manufacturing, repairing, and overhauling components for commercial, military, and regional aircraft. It also supports critical defense programs with precision-engineered parts.
In early 2025, Triumph Group, Inc. (NYSE:TGI) agreed to be acquired by private equity firms Warburg Pincus and Berkshire Partners for about $3 billion, transitioning to a privately held company. Shareholders will receive $26 per share, a notable premium over recent prices.
For fiscal 2025, the company reported $1.26 billion in net sales, up 6% year-over-year, with an operating income of $139.4 million and an 11% margin. The fourth quarter showed strong results with a 16% operating margin, driven by solid performance in both commercial and defense segments.
The business’s defense role has expanded through a strategic supplier agreement with BAE Systems and the U.S. Army for the M777 Lightweight Howitzer. Since 2022, it has shipped over 2,365 critical Primer Feed Mechanism components, with nearly 1,000 more units on order, highlighting its trusted position in military supply chains.
The company also achieved its eleventh consecutive quarter of year-over-year sales growth, fueled by its aftermarket products that extend the lifecycle of aerospace and defense equipment.
Triumph Group, Inc. (NYSE:TGI)’s growing focus on defense programs, especially the M777 Howitzer platform, positions it for stable revenues and growth amid sustained defense budgets and modernization efforts. Its commitment to quality and reliability in defense components reinforces its status as a key supplier to military clients.
While we acknowledge the potential of TGI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGI and that has 100x upside potential, check out our report about this cheapest AI stock.
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