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. From an earnings growth perspective, mid-caps and large-caps were almost on par. However, he contended that the current valuation disparity did not accurately reflect the future opportunity in mid-caps. McKnight predicted that as the year progressed and into the next year, mid-cap companies with strong balance sheets and earnings growth comparable to large-caps should begin to receive a valuation more in line with their large-cap counterparts.
McKnight further clarified his position and stated that if mid-cap valuations increased from 17x earnings to somewhere between 20x and 21x earnings, investors would benefit. He reasoned that earnings would at least begin to grow and lead to growth in both valuation and earnings for mid-caps. Conversely, he believed that large-caps had limited room for valuation expansion, finding it difficult to justify higher valuations, particularly in certain sectors, such as the MAG7.
That being said, we’re here with a list of the 12 best performing mid cap stocks so far in 2025.
A young professional in a suit examining stocks on a tablet computer in a mid-town office building.
Methodology
We sifted through the Finviz stock screener to compile a list of the best-performing mid-cap stocks that were trading between $2 billion and $10 billion. We then picked the top 11 stocks with the highest year-to-date performance, as of July 16. The stocks are ranked in ascending order of their year-to-date performance. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database.
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).
11 Best Performing Mid Cap Stocks So Far In 2025
11. Soleno Therapeutics Inc. (NASDAQ:SLNO)
Number of Hedge Fund Holders: 58
Market Capitalization as of July 16: $4.41 billion
Year-to-Date Performance as of July 16: 85.96%
Soleno Therapeutics Inc. (NASDAQ:SLNO) is one of the best performing mid cap stocks so far in 2025. On July 10, Soleno Therapeutics announced that the sales of its new Prader-Willi disease drug, called Vykat XR, are exceeding Wall Street expectations. Vykat XR is the first approved treatment for the insatiable hunger associated with Prader-Willi syndrome and was approved in the US on March 26 earlier this year.
For the three months ending June 30, Soleno anticipates net revenue from Vykat XR sales to be between $31 and $33 million. Since its approval, the company has received ~646 “start forms” from 295 physicians, which shows strong initial demand. While the quarterly performance review is ongoing and estimates could change, Stifel analyst James Condulis noted that these preliminary numbers are well-above investor expectations.
Prader-Willi syndrome is a rare genetic condition that affects an estimated 10,000 to 20,000 people in the US, characterized by behavioral and cognitive symptoms, most notably an all-consuming hunger (hyperphagia). Before Vykat XR, the management of the disease typically involved supportive care and human growth hormone.
Soleno Therapeutics Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics for the treatment of rare diseases.
10. Gogo Inc. (NASDAQ:GOGO)
Number of Hedge Fund Holders: 19
Market Capitalization as of July 16: $2.06 billion
Year-to-Date Performance as of July 16: 92.21%
Gogo Inc. (NASDAQ:GOGO) is one of the best performing mid cap stocks so far in 2025. On June 24, Gogo confirmed that its Gogo C1 Line Replaceable Unit/LRU received Supplemental Type Certification/STC for 42 aircraft models. The certification was granted by the Federal Aviation Administration/FAA through an Approved Model List/AML and ensures continued in-flight connectivity for ~70% of Gogo’s legacy air-to-ground/ATG customers in North America.
The Gogo C1 LRU facilitates a seamless transition for current customers using legacy ATG 1000, 2000, 4000, or 5000 systems to Gogo’s upcoming LTE network upgrade. The Gogo C1 LRU is equipped with a dual-technology aircard that can connect to the existing network and will automatically switch to the new LTE network once it’s available.
The C1 has been engineered with external dimensions and attachment points that match legacy products. To encourage the timely adoption of the C1 installation, Gogo is offering a $35,000 installation incentive for customers who complete the upgrade before December 31 this year.
Gogo Inc. (NASDAQ:GOGO) provides broadband connectivity services to the aviation industry with a product platform that includes networks, antennas, and airborne equipment & software.
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