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.
8. Choice Hotels International, Inc. (NYSE:CHH)
Choice Hotels International, Inc. (NYSE:CHH) is among the fastest growing stocks.
On February 20, Deutsche Bank increased its price target on CHH to $119 from $109 and maintained a Hold rating on the stock. The revision follows adjustments to the firm’s financial model after reviewing the company’s fourth-quarter results.
In addition, Barclays maintained its Underweight rating on Choice Hotels International, Inc. (NYSE:CHH) shares after the fourth-quarter report, raising its price objective on the company that same day from $98 to $101. The company’s cautious RevPAR estimate may allow for upside if the overall economic climate improves, the firm said, but it had little faith in Choice’s net room growth continuing to accelerate.
More recently, on February 25, 2026, CHH announced that its board of directors approved a quarterly cash dividend of $0.2875 per share on common stock. The dividend will be paid on April 15, 2026, to shareholders recorded as of April 1, 2026.
Choice Hotels International, Inc. (NYSE:CHH) is a global hospitality company operating over 7,000 franchised hotels in 40+ countries. Its portfolio includes brands like Comfort Inn, Quality Inn, and Cambria, focusing on affordable and midscale lodging with consistent service, strong franchise support, and loyalty programs for business and leisure travelers.
7. CareTrust REIT, Inc. (NYSE:CTRE)
CareTrust REIT, Inc. (NYSE:CTRE) is among the fastest growing stocks.
TheFly reported on February 24 that RBC Capital raised its price target on CTRE to $44 from $41 and maintained an Outperform rating following the company’s fourth-quarter results. The firm stressed that CTRE is well-positioned to deploy capital across its three operational platforms, despite lowering its full-year 2026 FFO per share outlook by $0.08 to $2.01 to account for investment timing and increased general and administrative expenses.
CareTrust REIT, Inc. (NYSE:CTRE) released its financial results for the fourth quarter and year-end of 2025 earlier on February 12. The company’s net income for the year increased by 96% from 2024 to $320.5 million, or $1.57 per diluted share. Over the prior year, Normalized FFO and Normalized FAD grew by 17% and 14%, respectively, to $359.7 million and $360.0 million, or $1.76 per share. With Normalized FFO of $104.1 million ($0.47 per share) and Normalized FAD of $103.0 million ($0.46 per share), CTRE’s net income for the quarter was $111.3 million, or $0.50 per share.
The business maintained full contractual rent collection while completing $561.5 million in investment activity at a combined stabilized yield of 8.8%. The board of CTRE also announced a quarterly dividend of $0.335 per share, which is equivalent to almost 73% of Normalized FAD.
CareTrust REIT, Inc. (NYSE:CTRE) is a real estate investment trust specializing in senior housing and healthcare properties. The company owns and leases a diversified portfolio of skilled nursing, assisted living, and memory care facilities across the U.S., focusing on long-term, stable income and growth through strategic property investments.
6. DigitalOcean Holdings, Inc. (NYSE:DOCN)
DigitalOcean Holdings, Inc. (NYSE:DOCN) is among the fastest growing stocks.
TheFly reported on February 25 that Oppenheimer raised its price target on DOCN to $85 from $60 and maintained an Outperform rating on the shares. The firm highlighted gains in customer indicators, revenue guidance at the upper end of expectations for 2026 and 2027, and strong quarterly earnings. Oppenheimer also noted that DOCN is positioning itself to benefit from the industry’s growing shift toward inferencing workloads.
On February 24, DigitalOcean Holdings, Inc. (NYSE:DOCN) released its financial results for the fourth quarter and the entire year 2025, which highlighted that the company’s strong growth is driven by AI. The company reported fourth-quarter revenue of $242 million, up 18% from the prior year, and annual run-rate revenue of $970 million. Net income for the quarter was $26 million, up 40% over the prior year, while adjusted EBITDA was $99 million, up 16%.
Results for the full year 2025 showed sales of $901 million, a 15% increase, and net income of $259 million, more than tripling from 2024. Its $375 million adjusted EBITDA for the year was a result of strong free cash flow and growth in unlevered free cash flow.
Operationally, net dollar retention improved, AI-related ARR increased significantly, and the number of high-value clients kept growing. Furthermore, DOCN incorporated AI workflows into its core cloud solutions and included additional inference infrastructure capabilities. The company’s 2026 outlook called for steady top-line growth, good margins, and profitable expansion.
DigitalOcean Holdings, Inc. (NYSE:DOCN) provides cloud infrastructure and services, offering simple, scalable solutions for developers and businesses to deploy and manage applications efficiently.
5. iRhythm Holdings, Inc. (NASDAQ:IRTC)
iRhythm Holdings, Inc. (NASDAQ:IRTC) is one of the fastest growing stocks.
TheFly reported on February 23 that Goldman Sachs reduced its price target on IRTC to $184 from $211 and maintained a Neutral rating on the stock.
On February 19, iRhythm Holdings, Inc. (NASDAQ:IRTC) published its results for the fourth quarter and the entire year of 2025. The company’s fourth-quarter revenue of $208.9 million was a 27.1% increase over the same period the previous year. With a net income of $5.6 million and a gross margin of 70.9%, it was IRTC’s first quarter of positive GAAP profitability. Adjusted EBITDA reached $34.3 million with a margin of 16.4%, a significant rise over the prior year.
According to the report, the total revenue for 2025 was $747.1 million, representing a 26.2% yearly rise. The gross margin increased to 70.6%, but the net loss dropped to $44.6 million from the previous year. For the first time in a full year, the company’s free cash flow was positive, generating $34.5 million. Growth, margin expansion, and prudent investment will remain top priorities for management as 2026 approaches. The company credited its success to novel care channels, international markets, and consistent demand across its core U.S. business.
iRhythm Holdings, Inc. (NASDAQ:IRTC) is a digital healthcare company focused on cardiac monitoring solutions. Its flagship Zio platform uses wearable biosensors and AI-driven analytics to detect arrhythmias, enabling physicians to diagnose heart conditions more efficiently and improve patient outcomes.
4. Planet Fitness, Inc. (NYSE:PLNT)
Planet Fitness, Inc. (NYSE:PLNT) is one of the fastest growing stocks.
TheFly reported on February 26 that Morgan Stanley lowered its price target on PLNT to $117 from $128 while maintaining an Overweight rating on the shares. Due to timing-related difficulties and a slower start to the year, the firm lowered its 2026 earnings per share outlook. Morgan Stanley thinks the business has the ability to pick up steam again if these short-term difficulties subside, despite the fact that short-term visibility seems restricted.
Earlier in February, Planet Fitness, Inc. (NYSE:PLNT) announced plans to further grow in Mexico, with the signing of a new franchise deal with Impulso Gym. The collaboration will help the company expand its presence in northern Mexico by facilitating the opening of new sites in Tijuana and Mexicali. With 47 locations in 14 Mexican states, Planet Fitness is still expanding its presence in the nation. The business restated its commitment to expanding access to reasonably priced exercise choices in foreign markets and cited Mexico’s low gym membership penetration as a significant opportunity for growth.
Planet Fitness, Inc. (NYSE:PLNT) is a leading U.S.-based fitness center franchisor and operator known for its low-cost memberships and “Judgement Free Zone” philosophy. The company operates thousands of gyms and offers affordable, accessible fitness options primarily targeting casual and first-time gym users.
3. Old National Bancorp (NASDAQ:ONB)
Old National Bancorp (NASDAQ:ONB) is among the fastest growing stocks.
TheFly reported on February 24 that Citi raised its price target on ONB to $29 from $28 while reiterating a Buy rating on the stock. The firm cited a more normalized yield curve situation as the foundation for a good profitability backdrop for regional banks.
Furthermore, on February 19, Old National Bancorp (NASDAQ:ONB) declared that its Board of Directors had authorized a 3.6% increase in the quarterly dividend of its common stock, bringing it to $0.145 per share. Shareholders of record as of March 5, 2026, will receive the dividend on March 16, 2026. The company’s share repurchase program was also approved by the board, which doubled its capacity to $400 million. The $200 million program that was set to expire at the end of February 2026 has been replaced by this new authorization.
Depending on market conditions and management’s judgment, the business may repurchase shares under the revised plan through private negotiations, open market purchases, or expedited buyback agreements. The permission will be valid until February 28, 2027. The company’s ongoing commitment to returning money to shareholders while retaining flexibility in how and when shares are repurchased is reflected in the combined dividend increase and increased repurchase program.
Old National Bancorp (NASDAQ:ONB) is a regional bank holding company providing retail and commercial banking, wealth management, and lending services. Operating primarily in the Midwest, it focuses on relationship-driven banking, community engagement, and diversified financial solutions for individuals and businesses.
2. Elastic N.V. (NYSE:ESTC)
Elastic N.V. (NYSE:ESTC) is one of the fastest growing stocks.
TheFly reported on February 23 that TD Cowen reduced its price target on ESTC to $70 from $85 while reiterating a Hold rating. In anticipation of performance above expectations and increased projections, the firm modified its financial model before the third-quarter results. The firm cited mixed channel checks before the earnings announcement and also highlighted a balanced risk profile.
More recently, Elastic N.V. (NYSE:ESTC) revised its full-year guidance for fiscal 2026 on February 26, 2026, estimating non-GAAP diluted EPS to be between $2.50 and $2.54. The business anticipates strong year-over-year growth with total revenue of around $1.734–$1.736 billion and sales-led subscription revenue of approximately $1.434–$1.436 billion. A non-GAAP operating margin of about 16.3% is another expectation ESTC has, based on an estimated 107–108 million fully diluted shares. This guidance follows a third-quarter performance that exceeded prior expectations, driven by increased customer adoption of its unified Search AI platform and continued expansion in enterprise AI use cases.
Elastic N.V. (NYSE:ESTC) develops search, observability, and security solutions through its Elastic Stack platform. Its products help organizations search, analyze, and visualize data in real time, supporting use cases in enterprise search, logging, security, and analytics across industries worldwide.
1. Kite Realty Group Trust (NYSE:KRG)
Kite Realty Group Trust (NYSE:KRG) tops our list of the fastest growing stocks.
TheFly reported on February 24 that Citi increased its price target for KRG to $27 from $24 while continuing to maintain a Neutral rating on the stock.
Kite Realty Group Trust (NYSE:KRG) released its fourth-quarter 2025 results on February 17, 2026, with Core FFO of $0.51 per diluted share and NAREIT FFO of $0.52 per share. Through 164 new and renewal contracts, the company leased almost 1.3 million square feet during the quarter. For comparable new and non-option renewal leases, the blended cash leasing spreads were 18.5%.
The same-property net operating income increased by 1.7%, indicating consistent operational success. The leased rate for the retail portfolio at the end of the quarter was 95.1%, which includes 92.3% for small shops and 96.7% for anchor locations. The ABR per square foot of the operating retail portfolio rose 7.0% year over year to $22.63. During the quarter, KRG sold several assets, including eight large-format centers totaling 2.1 million square feet, for $429.0 million in gross revenues. Furthermore, the company paid $177.8 million to repurchase 7.7 million shares, bringing the total number of shares repurchased this year to 13.0 million at an average price of $23.00.
The company maintained a strong balance sheet with net debt to adjusted EBITDA of 4.9x and declared a first-quarter 2026 dividend of $0.29 per share, reflecting a 7.4% increase year-over-year.
Kite Realty Group Trust (NYSE:KRG) is a retail-focused real estate investment trust (REIT) that owns and operates open-air shopping centers across the United States, emphasizing grocery-anchored and necessity-based properties to generate stable rental income and long-term growth.
While we acknowledge the potential of KRG 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 KRG and that has 100x upside potential, check out our report about this cheapest AI stock.
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