In this article, we will be taking a look at the 10 Fastest Growing Mid Cap Stocks to Buy Now.
The Federal Reserve’s pivot from higher interest rates to rate cuts is creating a meaningful shift for mid-cap stocks, according to Amy Y. Zhang, portfolio manager of the Alger Mid Cap 40 ETF. In a January 23 article for ETF Trends, Zhang described the change as a move from “headwind to tailwind,” arguing that the rate environment matters more than valuations alone. Lower borrowing costs could also revive M&A activity in 2026, with mid-cap firms positioned in a “sweet spot.” She noted that years of investor preference for a barbell strategy, favoring large- and small-cap stocks while overlooking mid-cap stocks, have left mid-cap equities trading at a historically wide 28% discount.
In late January, market conditions changed much further. On January 30, President Donald Trump selected Kevin Warsh to head the Fed, boosting the value of the US currency and allaying worries about central bank independence. The Federal Reserve signaled stability in cash yields by holding rates constant two days prior, on January 28.
Matt Stucky of Northwestern Mutual stated on Closing Bell Overtime on January 27 that market leadership is expanding beyond mega-cap tech due to declining rates. He emphasized that the cyclical, mid-, and small-cap sectors’ earnings revisions have improved, and he anticipates that the valuation differences between large and small caps will close. He thinks the next stage of growth would favor businesses using AI tools rather than creating them, while still exposing them to mega-cap tech.
Similarly, on January 8, Nancy Prial of Essex Investment Management emphasized diversification, citing opportunities in underfollowed small- and mid-cap stocks tied to AI, reshoring, healthcare, and defense. She views headline-driven volatility as temporary and sees selective defense exposure, particularly in lesser-known subcontractors, as a prudent strategy in an increasingly complex geopolitical landscape.
With that being said, let’s move on to fastest growing stocks.
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Our Methodology
For our methodology, we used screeners to identify the fastest-growing mid-cap stocks with at least 20% of five-year revenue growth and market capitalizations between $2 billion and $10 billion. We then narrowed our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also widely followed by analysts and are popular among elite hedge funds.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 10 Fastest Growing Mid Cap Stocks to Buy Now.
10. Establishment Labs Holdings Inc. (NASDAQ:ESTA)
Establishment Labs Holdings Inc. (NASDAQ:ESTA) is among the fastest growing stocks.
TheFly reported on February 25 that Stephens raised the price target for ESTA to $90 from $85 and kept an Overweight rating on the stock. According to the firm, the company’s expanding U.S. market share, new product revenue, and strong momentum in direct international markets should support long-term gains in profitability and drive the company to sustainable growth above 25% over the coming years.
Additionally, Establishment Labs Holdings Inc. (NASDAQ:ESTA) reported $64.62 million in revenue for the fourth quarter on February 24, which was slightly higher than the $64.12 million consensus expectation. Strong demand from patients and surgeons has been the company’s driving force since 2025. Its Preserve product has become widely accepted in foreign markets, leading to an increase in procedure volumes and revenues.
The company is attracting a wider range of customers by providing patients with less anesthesia and quicker recovery with the introduction of a new category of tissue-preserving, minimally invasive solutions. In addition to boosting ESTA’s overall global business expansion, this combination of innovation and market acceptance is helping to significantly increase the number of plastic surgery treatments.
Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a global medical technology company specializing in breast aesthetics and reconstruction. It develops and markets silicone breast implants and related products, focusing on safety, innovation, and advanced manufacturing to serve plastic surgeons and patients worldwide.
9. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is among the fastest growing stocks.
TheFly reported on February 23 that Wolfe Research initiated coverage of ACAD with an Outperform rating and a $33 price target. In its first coverage of the neuroscience biotech industry, the firm highlighted a small number of very conviction-driven businesses in a range of therapeutic domains. Wolfe believes that Daybue and Nuplazid, ACAD’s main products, are reasonably priced in relation to the share price as of right now.
In addition, on February 25, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) released its financial results for the fourth quarter and the entire year of 2025. GAAP revenues totaled $284 million for the quarter and $1.07 billion for the entire year. According to these numbers, revenue has increased by 9% and 12% annually, respectively. On a non-GAAP adjusted basis, revenue climbed by 16% and 14% to $1.08 billion for the year and $298 million for the fourth quarter.
During the quarter, NUPLAZID’s non-GAAP sales came to $189 million, while its GAAP net sales, including a one-time rebate accrual adjustment, came to $174 million. DAYBUE’s GAAP net sales for the quarter were $110 million, a 13% increase over the previous year.
With NUPLAZID sales anticipated to be between $760 million and $790 million and DAYBUE sales anticipated to be between $460 million and $490 million, the business forecasted full-year 2026 revenue in the range of $1.22 billion to $1.28 billion.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system disorders. It targets unmet medical needs in areas such as Parkinson’s disease, psychosis, schizophrenia, and rare neurological conditions.
