In this article, we will discuss the 10 Best Mid Cap Stocks to Buy with Highest Upside Potential.

On May 16, Alex Guiliano, CIO of Resonate Wealth Partners, joined BNN Bloomberg to discuss the economic landscape and portfolio strategies following the confirmation of Kevin Warsh as the new US Fed Chair. Warsh faces a complex environment characterized by a softening job market and elevated, noisy inflation data, which provide little justification for rate cuts. Additionally, he must navigate market expectations amid the ongoing conflict with Iran and pressure from Donald Trump, who has long advocated for rate reductions, all while maintaining the fine balance required ahead of the upcoming midterm elections.

With US markets having reached new highs but experiencing recent declines, including a significant drop in US futures, market sentiment appears volatile and uncertain. Guiliano noted that sentiment can shift rapidly, advising investors to build stock portfolios centered on quality, defined as companies with strong cash flows and durable profits capable of withstanding various economic environments. Specifically, he recommends focusing on the US financial and healthcare sectors, along with select big tech companies that possess clearly defined AI strategies rather than those merely chasing a narrative. He warned investors to avoid companies riding the AI wave without a solid, clear strategy, citing recent pullbacks in SaaS stocks as an example, and urged them to focus on true quality over market narratives.

Regarding concerns over an AI bubble, Guiliano argued that investors should view the current climate as a structural investment boom rather than trying to time a bubble. He emphasized investing over speculating, suggesting investors look for companies with the financial strength to lead in AI, but which also have the ability to pivot if investments do not perform as expected or if the boom cycle slows. Companies with diversified profit centers outside of AI are particularly well-positioned to withstand potential pullbacks in that sector.

Our Methodology

We used screeners to identify mid-cap stocks with market caps between $2 billion and $10 billion with an average upside potential of at least 30%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds and are ranked in ascending order of their upside potential.

Note: All data was sourced on May 25. 

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10 Best Mid Cap Stocks to Buy with Highest Upside Potential

10. New Oriental Education & Technology Group Inc. (NYSE:EDU)

Average Upside Potential: 55.50%

New Oriental Education & Technology Group Inc. (NYSE:EDU) is one of the best mid cap stocks to buy with highest upside potential. On April 22, New Oriental Education & Technology Group reported strong financial results for FQ3 2026. Total net revenues grew by 19.8% year-over-year to $1.417 billion, while net income attributable to the company rose by 45.3% to $126.8 million. Operating income also saw a significant increase of 44.8%, reaching $180.3 million.

Growth was driven by the expansion of new educational initiatives, including non-academic tutoring and intelligent learning systems, alongside steady performance in domestic and overseas test preparation. Leadership emphasized a focus on operational efficiency, AI integration across the education ecosystem, and the continued development of the East Buy platform. These efforts, combined with cost structure optimizations, resulted in an improved non-GAAP operating margin of 14.3%.

Regarding shareholder returns, the board of directors approved the second installment of a dividend for FY2026, amounting to $0.06 per common share or $0.6 per ADS, payable in June. Additionally, the company continued its share repurchase program, having bought back approximately $184.3 million worth of ADSs as of April 21, out of the authorized $300 million total.

New Oriental Education & Technology Group Inc. (NYSE:EDU) is a Beijing-based provider of private educational services. Founded in 1993, the company operates through four segments, including Educational Services and Test Preparation Courses, and Overseas Study Consulting Services.

9. IAMGOLD Corporation (NYSE:IAG)

Average Upside Potential: 57.69%

IAMGOLD Corporation (NYSE:IAG) is one of the best mid cap stocks to buy with highest upside potential. On May 5, IAMGOLD reported a strong start to 2026, with Q1 attributable gold production of 183,600 ounces, keeping the company on track for its full-year guidance of 720,000 to 820,000 ounces. Financial performance was robust, highlighted by revenues exceeding $1 billion, an adjusted EBITDA of $666.3 million, and mine-site free cash flow of $524.6 million. These results were supported by an average realized gold price of $4,859 per ounce.

Operations at Côté Gold saw throughput limits due to conveyor maintenance, but performance is expected to improve progressively throughout the year as debottlenecking continues. Meanwhile, Westwood and Essakane delivered year-over-year production increases. The company remains focused on growth catalysts, including updated mineral resource estimates and technical reports for several assets, alongside continued investments in operational optimization and infrastructure.

The company used its strong free cash flow to strengthen its balance sheet and reward shareholders. During Q1, IAMGOLD Corporation (NYSE:IAG) repaid $100 million in debt and purchased $260 million worth of shares through its buyback program. With $1.1 billion in available liquidity as of March 31, the company is well-positioned to continue its share repurchase initiatives and maintain a disciplined approach to debt reduction for the remainder of the year.

IAMGOLD Corporation (NYSE:IAG) is a mining company engaged in the exploration, development, and production of gold. Its operations include producing assets such as the Essakane mine in Burkina Faso and the Westwood mine in Canada.