On Friday, August 29, stocks declined as investors decided to take some money out before a long weekend. This comes after the S&P 500 reached a new record and NVIDIA Corporation (NVDA) reported strong earnings earlier in the week. New inflation data also showed that rising prices remain a concern going into September.
The S&P 500 lost 0.64% but still had its fourth consecutive winning month. The Nasdaq Composite went down by 1.15%. The Dow Jones Industrial Average dropped 0.20%.
Despite these losses on Friday, all three major indexes finished August with strong gains. The 30-stock Dow rose over 3% for the month, the S&P 500 gained nearly 2%, and the tech-heavy Nasdaq increased by 1.6%.
Looking at inflation, the core Personal Consumption Expenditures (PCE) price index, which is a key inflation measure closely watched by the Federal Reserve and excludes food and energy costs, went up 2.9% in July. While this data aligned with expectations, it accelerated compared to the previous month and was the highest since February.
Ellen Zentner, the chief economic strategist at Morgan Stanley Wealth Management, said:
“The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation.”
Zentner added that the “in-line PCE Price Index” will keep the attention on the job market, and for now, it still seems likely there could be a rate cut in September.
With this background in mind, let’s take a look at the 10 hot mid-cap stocks to buy now.
Our Methodology
To compile our list of the 10 hot mid-cap stocks to buy now, we used the Finviz stock screener to find stocks with a market capitalization between $2 billion and $10 billion and sorted our results based on 6-month performance. We looked for stocks that have gained at least 40% in the last 6 months as of August 29, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 10 hot mid-cap stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? 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).
10 Hot Mid Cap Stocks to Buy Now
10. Pagaya Technologies Ltd. (NASDAQ:PGY)
Market Capitalization: $2.60 Billion
6-Month Performance: 187.45%
Number of Hedge Fund Holders: 32
Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the best hot mid-cap stocks to buy now. On August 11, JMP Securities increased its price target for Pagaya Technologies Ltd. (NASDAQ:PGY) from $26 to $35 and kept a Market Outperform rating.
This decision came after Pagaya Technologies Ltd. (NASDAQ:PGY) reported Q2 2025 results. JMP analysts noted that the company is at an “inflection point” where almost all incremental gross profit will now convert to pretax profit.
Previously, on August 8, Keefe, Bruyette & Woods also increased the price target for Pagaya Technologies Ltd. (NASDAQ:PGY) from $27 to $38 from $27 and maintained an Outperform rating.
The firm described the company’s recent quarter as “record setting.” Pagaya Technologies Ltd. (NASDAQ:PGY) reported a record GAAP net income of $17 million, which is up $91 million compared to the same quarter last year. This performance was driven mainly by revenue growth and lower expenses. The company also reached a record network volume of $2.6 billion, up 14% year-over-year, driven by growth in its Auto and Point-of-Sale verticals. Additionally, Pagaya Technologies Ltd. (NASDAQ:PGY) achieved a record adjusted EBITDA of $86 million, up $36 million year-over-year.
Keefe, Bruyette & Woods pointed out that Pagaya Technologies Ltd. (NASDAQ:PGY) is “undervalued when compared to peers.”
Since the company reported its Q2 2025 results on August 7, Pagaya Technologies Ltd. (NASDAQ:PGY) has gained more than 20% as of August 29.
Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company that uses its AI network to provide comprehensive consumer credit and residential real estate products.
9. Viasat, Inc. (NASDAQ:VSAT)
Market Capitalization: $4.36 Billion
6-Month Performance: 269.91%
Number of Hedge Fund Holders: 37
Viasat, Inc. (NASDAQ:VSAT) is one of the best hot mid-cap stocks to buy now. On August 19, Viasat, Inc. (NASDAQ:VSAT) announced that it received an award worth AUD 252 million from Geoscience Australia (GA) and Toitū Te Whenua Land Information New Zealand (LINZ). The company will provide additional satellite services for the region’s Southern Positioning Augmentation Network, also known as SouthPAN.
According to the report by Viasat, Inc. (NASDAQ:VSAT), this award builds on an earlier SouthPAN contract. From the new agreement, the company estimates a net incremental value of AUD 214 million.
SouthPAN is a satellite-based augmentation system developed in collaboration by Australia and New Zealand. It offers precise positioning and navigation services to support a range of industries, including aviation, maritime, agriculture, surveying, and emergency response.
The new award amends the previous agreement and is part of Viasat, Inc.’s (NASDAQ:VSAT) Communication Services segment. It covers ongoing services from the company’s existing in-orbit satellites and includes a new payload.
Viasat, Inc. (NASDAQ:VSAT) is a global communications technology company that offers internet and other communication services to consumers, businesses, governments, and militaries. The company offers important communications solutions that are available on the ground, in the air, at sea, and in space.
8. CommScope Holding Company, Inc. (NASDAQ:COMM)
Market Capitalization: $3.59 Billion
6-Month Performance: 152.60%
Number of Hedge Fund Holders: 38
CommScope Holding Company, Inc. (NASDAQ:COMM) is one of the best hot mid-cap stocks to buy now. On August 27, CommScope Holding Company, Inc. (NASDAQ:COMM) reported that it achieved record-breaking downstream speeds in a DOCSIS 4.0 network.
This achievement by CommScope Holding Company, Inc. (NASDAQ:COMM) took place during the CableLabs DOCSIS 4.0 and DAA Technology Interop event in Louisville, Colorado. This event allowed different companies to check their equipment’s interoperability with CableLabs’s DOCSIS 4.0 specifications.
CommScope Holding Company, Inc. (NASDAQ:COMM) used a 258 – 1794 MHz downstream and 10 – 204 MHz upstream RF plant setup. This setup was powered by the vCCAP Evo virtual CCAP platform and it helped CommScope Holding Company, Inc. (NASDAQ:COMM) to reach unprecedented speeds of 16.25 Gbps in downloads. This was done using two load-balanced DOCSIS 4.0 modems, which came from different manufacturers with different chipsets.
In another test, CommScope Holding Company, Inc. (NASDAQ:COMM) also showed that a single DOCSIS 4.0 modem could achieve downstream speeds of more than 9.4 Gbps. These impressive speeds indicate that a DOCSIS 4.0 network could compete with FTTH speeds without the need for deploying a new network.
These achievements also show that CommScope Holding Company, Inc.’s (NASDAQ:COMM) vCCAP Evo platform and DOCSIS 4.0 products have superior interoperability and flexibility.
CommScope Holding Company, Inc. (NASDAQ:COMM) a leading American manufacturer of broadband connectivity technologies and fiber optic solutions.
7. Sunrun Inc. (NASDAQ:RUN)
Market Capitalization: $3.56 Billion
6-Month Performance: 120.28%
Number of Hedge Fund Holders: 39
Sunrun Inc. (NASDAQ:RUN) is one of the best hot mid-cap stocks to buy now. On August 18, RBC Capital upgraded Sunrun Inc.’s (NASDAQ:RUN) rating from Sector Perform to Outperform and increased the price target from $12 to $16.
RBC Capital sees more certainty about Sunrun Inc.’s (NASDAQ:RUN) long-term opportunities after treasury guidance clarification.
The firm pointed out that changes to the OB3 guidance help Sunrun Inc.’s (NASDAQ:RUN) business model. Additionally, clearer rules about starting construction for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) lower the risks in the company’s future growth outlook and value proposition.
The increased price target of $16 implies about a 15% cash generation yield to 2026. RBC Capital believes this is in line with Sunrun Inc.’s (NASDAQ:RUN) historical range.
RBC Capital upgraded the rating after reviewing how the company’s business outlook improved after the updated regulatory information.
Sunrun Inc. (NASDAQ:RUN) is an American residential solar panel and battery storage company.
6. IREN Limited (NASDAQ:IREN)
Market Capitalization: $5.77 Billion
6-Month Performance: 221.36%
Number of Hedge Fund Holders: 39
IREN Limited (NASDAQ:IREN) is one of the best hot mid-cap stocks to buy now. On August 25, IREN Limited (NASDAQ:IREN) reported that it has purchased 4,200 NVIDIA Blackwell B200 GPUs. This transaction doubles the total GPU fleet of IREN Limited (NASDAQ:IREN) to about 8,500 NVIDIA GPUs.
According to the report, IREN Limited (NASDAQ:IREN) will install the new B200s at its Prince George campus, which will support the company’s phased growth to around 20,000 Blackwell GPUs.
Additionally, IREN Limited (NASDAQ:IREN) has secured $102 million in financing for a previous purchase of NVIDIA Blackwell B200 and B300 GPUs. This will help the company support its future growth plans, including the acquisition of more Blackwell GPUs.
By expanding its Blackwell capacity positions, the company is positioning itself strongly to meet growing demand and support the next phase of its AI cloud revenue growth.
IREN Limited (NASDAQ:IREN) develops, owns, and operates data centers. The company focuses on Bitcoin mining, high-performance computing solutions, and AI cloud services.
5. TTM Technologies, Inc. (NASDAQ:TTMI)
Market Capitalization: $4.37 Billion
6-Month Performance: 84.86%
Number of Hedge Fund Holders: 40
TTM Technologies, Inc. (NASDAQ:TTMI) is one of the best hot mid-cap stocks to buy now. On August 14, TTM Technologies, Inc. (NASDAQ:TTMI) reported that Edwin Roks, Ph.D. will be the company’s new President and Chief Executive Officer starting September 2, 2025.
Dr. Roks will take over from Thomas T. Edman, who has been TTM Technologies, Inc.’s (NASDAQ:TTMI) CEO since 2014. Mr. Edman will help with the CEO transition by becoming an advisor to the Chairman. The transition period is estimated to last until January 1, 2026. Mr. Edman will then continue to serve on the Board and the Government Security Committee after that.
Additionally, TTM Technologies, Inc. (NASDAQ:TTMI) reported that Dr. Roks has also been named a Class II director on the Board, effective September 2, 2025. Dr. Roks will be filling a vacant spot until the 2026 annual stockholders meeting.
Until April 2025, Dr. Roks served as CEO of Teledyne Technologies Incorporated. He helped Teledyne grow in digital imaging, improve technology, and successfully integrate the company’s largest acquisitions.
Dr. Roks’ focus on strong operations, customer relations, and innovation combined with his strong experience in aerospace, defense, and industrial electronics will support TTM Technologies, Inc.’s (NASDAQ:TTMI) long-term goals.
TTM Technologies, Inc. (NASDAQ:TTMI) is a global technology solutions company that manufactures mission systems, RF (Radio Frequency) components, RF microwave/microelectronic assemblies, and quick-turn and technologically advanced printed circuit boards.
4. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)
Market Capitalization: $6.92 Billion
6-Month Performance: 87.85%
Number of Hedge Fund Holders: 40
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the best hot mid-cap stocks to buy now. On August 21, Citizens JMP reaffirmed a Market Outperform rating on Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) with a price target of $135.
This decision came after Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) reported that the FDA has accepted for filing the company’s supplemental New Drug Application (sNDA) for review with Priority status for setmelanotide for hypothalamic obesity.
The firm sees a big market opportunity for setmelanotide in hypothalamic obesity. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) estimates between 5,000 and 10,000 patients in the US, which represents a potential market worth $2 to $4 billion. There is a similar number of patients in Europe, but the market size may be smaller because of pricing adjustments.
Citizens JMP estimates Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) could see peak sales for setmelanotide reach $1.5 billion in the US, $340 million in Europe, and $180 million in Japan. The company expects Phase 3 data from Japan in the first quarter of 2026.
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a commercial-stage biopharmaceutical company focused on developing and commercializing precision medicines for rare neuroendocrine diseases.
3. Dave Inc. (NASDAQ:DAVE)
Market Capitalization: $2.75 Billion
6-Month Performance: 111.82%
Number of Hedge Fund Holders: 42
Dave Inc. (NASDAQ:DAVE) is one of the best hot mid-cap stocks to buy now. On August 20, Benchmark reaffirmed its Buy rating for Dave Inc. (NASDAQ:DAVE) with a $320 price target.
This decision came after a Benchmark-hosted investor meeting with Dave Inc.’s (NASDAQ:DAVE) Chief Executive Officer, Jason Wilk, and Chief Financial Officer, Kyle Beilman.
From the meeting, Benchmark received clarity regarding why Dave Inc.’s (NASDAQ:DAVE) 28-day delinquencies increased in the second quarter of 2025. The research firm indicated that this had overshadowed the company’s overall performance.
Benchmark pointed out that this increase in delinquency “obscured a remarkably strong operating performance across almost every metric” for the second quarter.
Additionally, Benchmark analysts noted that the investor meeting provided insights into Dave Inc.’s (NASDAQ:DAVE) operating strategy and plans for growth following the release of its financial results for Q2 2025.
Dave Inc. (NASDAQ:DAVE) is a leading US neobank and fintech company that provides banking services at much lower costs than traditional banks. The company offers a range of services including ExtraCash advances, budgeting tools, job search assistance, and a digital checking account.
2. Liquidia Corporation (NASDAQ:LQDA)
Market Capitalization: $2.43 Billion
6-Month Performance: 78.70%
Number of Hedge Fund Holders: 43
Liquidia Corporation (NASDAQ:LQDA) is one of the best hot mid-cap stocks to buy now. On August 13, BTIG increased its price target for Liquidia Corporation (NASDAQ:LQDA) from $40 to $49 and kept a Buy rating.
BTIG noted that Liquidia Corporation (NASDAQ:LQDA) has seen stronger-than-expected adoption of YUTREPIA. As of August 8, 900 unique patient prescriptions were written, which led to over 550 patient starts. This performance surpassed BTIG’s earlier expectations for patient numbers that weren’t expected until late 2025 or early 2026.
The research firm increased its revenue estimates for YUTREPIA significantly. BTIG now expects Liquidia Corporation (NASDAQ:LQDA) to report $76.4 million in YUTREPIA revenue for 2025, up from $26.5 million. For 2026, the firm raised its forecast to $601.9 million, up from $215.9 million.
BTIG expects 50 new patients will start using YUTREPIA each week through the end of 2025. The firm expects the annualized net price per patient to be $225,000.
Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that develops and commercializes therapies for rare cardiopulmonary diseases.
1. Coeur Mining, Inc. (NYSE:CDE)
Market Capitalization: $8.39 Billion
6-Month Performance: 155.34%
Number of Hedge Fund Holders: 44
Coeur Mining, Inc. (NYSE:CDE) is one of the best hot mid-cap stocks to buy now. On August 7, BMO Capital increased its price target for Coeur Mining, Inc. (NYSE:CDE) from $11 to $12 and kept an Outperform rating.
This decision came after the company reported Q2 2025 results. Coeur Mining, Inc. (NYSE:CDE) reported a record free cash flow of $146 million, surpassing both BMO Capital’s estimate and the consensus forecast.
The company reported EPS of $0.20 for Q2 2025, exceeding BMO Capital’s forecast of $0.17 and the consensus expectation of $0.18. This strong performance was driven by strong production increases.
On August 7, Roth MKM analyst Joe Reagor also increased the firm’s price target on Coeur Mining, Inc. (NYSE:CDE) from $12 to $13 while keeping a Buy rating.
The analyst noted that the company delivered another strong quarterly performance, with slightly better than expected Q2 2025 results.
The company reported its Q2 2025 results on August 6. Since then, Coeur Mining, Inc.’s (NYSE:CDE) stock price has increased by nearly 33% as of August 29.
Coeur Mining, Inc. (NYSE:CDE) is a precious metals mining company operating in North America.
While we acknowledge the potential of CDE as an investment, 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 CDE and that has a 100x upside potential, check out our report about this cheapest AI stock.
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