In this article, we will take a look at the 12 Best Mid-Cap Stocks with Huge Upside Potential.
The Federal Reserve’s favored inflation indicator showed a modest increase in July inflation, suggesting that President Donald Trump’s tariffs are having an impact on the American economy.
The Commerce Department said on August 29 that core inflation, which does not include food and energy expenses, stood at a 2.9% seasonally adjusted annual rate based on the personal consumption expenditures price index.
Bank of America analysts say that despite the current turmoil in the stock market, investors seeking a bargain might look for opportunities developing in small-cap and mid-cap companies. Mid-cap equities are currently trading at a forward price-to-earnings ratio of approximately 0.75 in comparison to large-cap stocks. According to the bank, this is the lowest premium on mid-caps compared to large-caps since 2001.
Given the high valuations among large-cap companies, some Wall Street analysts have begun focusing on smaller companies on the stock market. Some strategists argue that the S&P 500 now appears to be just as expensive, if not more, than stocks were during the dot-com boom.
Our Methodology
For this list, we started by screening for companies with a market capitalization between $2 billion and $10 billion. From this filtered group, we chose the stocks with an analyst upside potential of more than 30%. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds, as of Q2 2025.
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).
12. Birkenstock Holding plc (NYSE:BIRK)
Analyst Upside: 33.93%
Market Capitalization: $9.59 billion
Number of Hedge Fund Holders: 46
Birkenstock Holding plc (NYSE:BIRK) ranks among the best mid-cap stocks with huge upside potential. Following the company’s third-quarter results report that surpassed market expectations, Goldman Sachs maintained its Buy rating and $60 price target for Birkenstock Holding plc (NYSE:BIRK) on August 20.
For the quarter ended in June, the footwear manufacturer posted currency-adjusted sales growth of 16%, exceeding the 14% consensus projection. During the company’s largest quarter of the year, it displayed continuing brand momentum and market share growth.
Although production capacity restrictions cause demand to exceed supply, especially in Europe and the Asia-Pacific, Birkenstock Holding plc (NYSE:BIRK) continues to maintain pricing discipline with over 90% full-price realization. Throughout the quarter, the business-to-business segment, which accounts for 60% of sales, performed better than the direct-to-consumer channels.
Birkenstock Holding plc (NYSE:BIRK) is a holding company for the global footwear brand Birkenstock, which is well-known for its closed-toe shoes, sandals with anatomical footbeds, skincare products, and accessories.
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