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.
11. Globus Medical Inc. (NYSE:GMED)
Analyst Upside: 35.47%
Market Capitalization: $8.27 billion
Number of Hedge Fund Holders: 49
Globus Medical Inc. (NYSE:GMED) ranks among the best mid-cap stocks with huge upside potential. Following the publication of Globus Medical Inc. (NYSE:GMED)’s second-quarter 2025 results, Citizens JMP reaffirmed its Market Perform rating on the company on August 20.
Globus Medical Inc. (NYSE:GMED) reported a total sales increase of 3% year-over-year, or 5% on a day-adjusted basis, slightly above analyst expectations. The company’s adjusted earnings per share came in at $0.86, exceeding Street projections of $0.75 by around 15%.
The medical device manufacturer reported that product supply “dramatically improved” throughout its business, and that operational issues that were mentioned in the first quarter had mostly dissipated. The results revealed a turnaround in Enabling Technologies revenue, which was down 4% year-over-year but surged nearly 60% sequentially after a 31% year-over-year drop in the first quarter of 2025.
Medical device manufacturer Globus Medical Inc. (NYSE:GMED) creates and markets healthcare solutions for musculoskeletal conditions both nationally and internationally.
10. monday.com Ltd. (NASDAQ:MNDY)
Analyst Upside: 38.01%
Market Capitalization: $9.80 billion
Number of Hedge Fund Holders: 67
monday.com Ltd. (NASDAQ:MNDY) ranks among the best mid-cap stocks with huge upside potential. KeyBanc reaffirmed its $330 price target and Overweight rating on monday.com Ltd. (NASDAQ:MNDY) on August 20. The reiteration comes after a volatile period for monday.com shares, which saw a sharp decline in late 2024 and early 2025 as a result of fears regarding possible downturn in European markets and expectations for revenue growth.
In spite of market concerns that revenue growth in 2025 might only be in the low-20% area, monday.com Ltd. (NASDAQ:MNDY) ultimately issued growth guidance of about 26%.
KeyBanc’s analysis shows that over the last six months, Monday.com’s core Work OS product has accelerated while new product growth has slowed. This suggests that current guidance depends on Work OS acceleration persisting.
monday.com Ltd. (NASDAQ:MNDY) is a cloud-based platform that lets customers create custom applications and project management solutions. Its visual interface enables teams of any size to manage projects, collaborate, and automate operations.
9. NICE Ltd. (NASDAQ:NICE)
Analyst Upside: 38.37%
Market Capitalization: $8.94 billion
Number of Hedge Fund Holders: 23
NICE Ltd. (NASDAQ:NICE) ranks among the best mid-cap stocks with huge upside potential. JMP Securities reaffirmed its Market Outperform rating and $300 price target for NICE Ltd. (NASDAQ:NICE) on August 26, noting the company’s growing AI capabilities.
According to the firm, NICE’s AI business expanded 42% to $238 million in the most recent quarter. The acquisition of Cognigy, which is expected to finalize in the fourth quarter, is expected to contribute to further growth.
JMP Projects Cognigy’s annual recurring revenue is expected to be $47 million this year, rising to more than $85 million by 2026, increasing NICE’s leadership in the AI-driven customer experience industry.
NICE Ltd. (NASDAQ:NICE) offers AI-powered cloud platforms for digital business solutions across the world. Its services include CXone for customer experience, the Enlighten AI engine, and smart self-service solutions.
8. Axsome Therapeutics, Inc. (NASDAQ:AXSM)
Analyst Upside: 39.93%
Market Capitalization: $6.05 billion
Number of Hedge Fund Holders: 40
Axsome Therapeutics Inc. (NASDAQ:AXSM) ranks among the best mid-cap stocks with huge upside potential. H.C. Wainwright reaffirmed its Buy rating and $180 price target for Axsome Therapeutics Inc. (NASDAQ:AXSM) on August 22 in response to a generic challenge to the company’s Symbravo medication.
On August 19, Axsome Therapeutics Inc. (NASDAQ:AXSM) stated that it had received a Paragraph IV Certification Notice Letter from Apotex Inc., which had applied with the FDA to produce a generic version of Symbravo. H.C Wainwright states that the pharmaceutical company intends to reply to the notification letter, characterizing this challenge as “normal course of business in the specialty pharmaceuticals arena.”
According to H.C. Wainwright, Symbravo is covered by patent claims that are expected to expire in 2040. In that regard, the firm remains optimistic that the medication would “survive generic challenge until late in the lifespan of issued patents protecting its market exclusivity.”
Axsome Therapeutics Inc. (NASDAQ:AXSM) is a clinical stage biopharmaceutical company that contributes to the creation of novel therapies for disorders of the central nervous system.
7. Elastic N.V. (NYSE:ESTC)
Analyst Upside: 41.58%
Market Capitalization: $8.98 billion
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) ranks among the best mid-cap stocks with huge upside potential. Oppenheimer retained its Outperform rating on Elastic N.V. (NYSE:ESTC) and lifted its price target from $100 to $119 on August 29. Elastic N.V. (NYSE:ESTC) was praised for its “excellent” first quarter fiscal year 2026 results, which exhibited widespread strength and consumption across all product categories and regions.
Elastic N.V. (NYSE:ESTC) now has 2,200+ paying AI clients, with 330+ spending $100,000+ a year, according to Oppenheimer. The company’s management expressed confidence in maintaining solid execution and outstanding near-term visibility, as evidenced by the increased FY26 projection.
Though the top-line impact is still very early and small, the firm believes AI and vector search will grow into levers to drive customer engagement via additional proof of concepts, RFPs, and competitive wins. This creates what Oppenheimer views as a multi-year growth opportunity that can affect all aspects of Elastic’s business.
Elastic N.V. (NYSE:ESTC) is a software company that offers solutions for search, logging, analytics, security, and observability needs.
6. Antero Resources Corporation (NYSE:AR)
Analyst Upside: 42.11%
Market Capitalization: $9.86 billion
Number of Hedge Fund Holders: 72
Antero Resources Corporation (NYSE:AR) ranks among the best mid-cap stocks with huge upside potential. On August 20, UBS raised Antero Resources Corporation (NYSE:AR) from Neutral to Buy with a $43 price target, citing a variety of factors, including the stock’s recent slide. The firm noted that AR shares have lately plummeted by over 30%, providing an attractive entry point for investors.
UBS estimated that the stock price suggests Henry Hub natural gas prices of $3.00-3.10/mmbtu, which is lower than both UBS’s $3.75 forecast for 2026-27 and the $3.85 strip price.
The firm also cited Antero’s greater upside leverage to rising natural gas prices as a result of its capital-efficient asset base, maintenance-level operations, and hedging position.
Antero Resources Corporation (NYSE:AR) is an oil and gas company that develops, produces, explores, and purchases oil, natural gas liquids (NGLs), and natural gas assets in the United States.
5. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Analyst Upside: 45.02%
Market Capitalization: $6.80 billion
Number of Hedge Fund Holders: 45
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) ranks among the best mid-cap stocks with huge upside potential. On August 22, following the FDA approval of the company’s treatment for hereditary angioedema (HAE), Piper Sandler maintained its Overweight rating on Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) and raised its price target from $62 to $65.
Dawnzera (donidalorsen), Ionis’ second independent product approval and launch, was approved by the FDA for use in adult and pediatric HAE patients aged 12 and above.
In this context, the firm emphasized Ionis’s skilled sales team in immunology and allergy, with a focus on the HAE market. Given that HAE is largely seen as a market where patients switch between therapies, this expertise might prove beneficial.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) produces medications for serious medical conditions, with a specific emphasis on cardiovascular and neurological disorders.
4. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Analyst Upside: 45.34%
Market Capitalization: $7.75 billion
Number of Hedge Fund Holders: 46
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) ranks among the best mid-cap stocks with huge upside potential. Truist Securities reaffirmed its Buy rating on Jazz Pharmaceuticals plc (NASDAQ:JAZZ) and boosted its price target from $200 to $205 on August 28. The update comes after Jazz’s webcast, which focused on the company’s marketing approach for Modeyso (dordaviprone), a recently licensed medication that treats an extremely rare type of aggressive glioma with an H3 K27M mutation.
According to Truist Securities, Modeyso is well-positioned for “robust commercial uptake” in the market due to the lack of competition for this high-unmet-need brain tumor. Additionally, the firm noted that Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was granted a Priority Review Voucher (PRV) for the clearance, whose estimated market worth exceeds $150 million.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company that develops treatments for serious illnesses. Its key products include Xywav, Xyrem, Epidiolex, Rylaze, Zepzelca, Defitelio, and Vyxeos.
3. Nuvalent Inc. (NASDAQ:NUVL)
Analyst Upside: 50.03%
Market Capitalization: $5.52 billion
Number of Hedge Fund Holders: 40
Nuvalent, Inc. (NASDAQ:NUVL) ranks among the best mid-cap stocks with huge upside potential. On August 19, Piper Sandler began coverage of Nuvalent, Inc. (NASDAQ:NUVL) with a price target of $112 and an Overweight rating. Although investors appear to be waiting for first-line ALK data, which is anticipated in a few years, the firm sees Nuvalent, Inc. (NASDAQ:NUVL) as a precision oncology company with potential for near-term value development over the next 18 months.
Piper Sandler identified three future catalysts for the stock, including revised Phase II neladalkib data in second-line and beyond ALK NSCLC, which is anticipated later this year and will aid in differentiation against rival therapies. The firm also mentioned that initial commercial sales of zidesamtinib are expected in 2026 in the ROS1 market, which it contends investors are currently undervaluing.
Nuvalent, Inc. (NASDAQ:NUVL) is a clinical-stage biopharmaceutical company that develops precisely tailored medicines for kinase-driven cancers.
2. Revolution Medicines, Inc. (NASDAQ:RVMD)
Analyst Upside: 82.14%
Market Capitalization: $7.10 billion
Number of Hedge Fund Holders: 71
Revolution Medicines, Inc. (NASDAQ:RVMD) ranks among the best mid-cap stocks with huge upside potential. Oppenheimer reaffirmed its Outperform rating and $75 price target for Revolution Medicines, Inc. (NASDAQ:RVMD) on August 25 after speaking with company management during a West Coast Biotech Bus Tour. The firm highlighted that Revolution recently stated that the initial results from the daraxonrasib RASolute-302 study would be available in 2026, with enrollment continuing smoothly.
As previously disclosed, Revolution Medicines, Inc. (NASDAQ:RVMD) indicated that additional Phase 3 trials of daraxonrasib in adjuvant and first-line pancreatic ductal adenocarcinoma (PDAC) remain scheduled to start this year.
Oppenheimer emphasized that although the filing of daraxonrasib in second-line PDAC may take place in 2026, Revolution Medicines, Inc. (NASDAQ:RVMD) continues to make strides in all areas of its business, and its improved cash sheet is enabling both possible commercialization and continued clinical development.
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage biotech company that develops cancer medications that target RAS, a major category of genetic abnormalities that are frequently present in difficult-to-treat cancers.
1. Moderna, Inc. (NASDAQ:MRNA)
Analyst Upside: 90.95%
Market Capitalization: $9.37 billion
Number of Hedge Fund Holders: 39
Moderna, Inc. (NASDAQ:MRNA) ranks among the best mid-cap stocks with huge upside potential. Moderna, Inc. (NASDAQ:MRNA) reported on August 27 that the US Food and Drug Administration had granted supplementary Biologics License Applications for its 2025-2026 COVID-19 vaccination compositions aimed at the LP.8.1 variant of SARS-CoV-2.
All adults 65 years of age and over, as well as individuals aged 6 months to 64 with at least one underlying disease that raises the risk of severe COVID-19 outcomes, were approved to receive the revised Spikevax vaccination.
Additionally, the updated vaccine composition complies with FDA recommendations that monovalent JN.1 lineage, preferably the LP.8.1 variation, be used in the development of COVID-19 vaccines.
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company dedicated to the discovery, development, and commercialization of mRNA-based medicines and vaccines. The company received solid recognition for its COVID-19 vaccine, which was one of the first mRNA vaccines to be created and delivered worldwide.
While we acknowledge the potential of MRNA 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 MRNA and that has 100x upside potential, check out our report about this cheapest AI stock.
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