In this article, we will look at the 13 Best Mid Cap Growth Stocks to Buy According to Hedge Funds.
On August 26, Courtney Garcia, Payne Capital Management senior wealth advisor, joined CNBC television for an interview to discuss whether investors should continue buying in the current market scenario. She believes that the investors should continue buying stocks because the economy remains fundamentally strong. Gracia highlighted that inflation is coming down and there is a general optimism that interest rates will fall, too, which is benefiting the stock market.
Moreover, the earnings have remained strong, with the current earnings season showing that the profit margins rose 13.5% last quarter. She believes that this is impressive growth given the inflation and tariff uncertainty. This also points to the fact that companies are fundamentally strong and that the consumers are also on a strong footing. Garcia expects that if interest rates drop, more sidelined cash could enter the market, helping stocks rally further.
Regarding the labor market, Gracia believes that the market remains tight with a slow hiring rate. However, there have not been many layoffs, and the wage inflation is also helping consumers maintain spending power. She noted that, as there are no signs of a recession, the current labor market conditions support her thesis of buying the dips and staying invested in the market.
With that, let’s take a look at the 13 best mid cap growth stocks to buy according to hedge funds.
Our Methodology
To curate the list of 13 best mid cap growth stocks to buy according to hedge funds, we used the Finviz Stock Screener, Yahoo Finance, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of mid-cap growth stocks (market cap between $2 billion – $10 billion). Next, we cross-checked the market capitalization from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders, 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).
13 Best Mid Cap Growth Stocks to Buy According to Hedge Funds
13. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Market Capitalization: $8.4 billion
Number of Hedge Fund Holders: 40
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 5, Halozyme Therapeutics, Inc. (NASDAQ:HALO) released its fiscal second quarter results for 2025 and raised its financial guidance for the year. The Wall Street analysts have been bullish on the stock, and the stock price has surged more than 20% since the announcement.
Recently, on August 17, Morgan Stanley analyst Sean Laaman raised the firm’s price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) from $75 to $80, while maintaining a Buy rating on the stock. He noted that the company raised the revenue and EPS guidance, after which the revenue is now expected to be 11% higher than the initial guidance, whereas the EPS is expected to be 20% higher. Management raised the forecasts due to strong sales from partnered products and good cost control.
Although the company has not yet disclosed its long-term outlook for 2026 to 2028, the analyst believes that the outlook will improve, driven by key products.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) develops drug delivery technology to improve how medicines are given to patients. Their main product is ENHANZE, which helps drugs to be injected under the skin more quickly and easily.
12. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)
Market Capitalization: $6.771 billion
Number of Hedge Fund Holders: 40
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 20, Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) announced that the FDA had accepted its supplemental New Drug Application for setmelanotide to treat acquired hypothalamic obesity. Wall Street has shown bullish sentiment regarding the announcement.
Later on the same day, Michael Ulz from Morgan Stanley reiterated a Buy rating on Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) with a price target of $109. He noted that the application targets acquired hypothalamic obesity and has been granted Priority Review. This shows a strong need for new treatments in this area.
Moreover, the analyst highlighted that the Phase 3 data from the TRANSCEND study were positive and showed significant reductions in BMI and a good safety profile. Management has noted that the European Medicines Agency is also reviewing the drug, which could lead to approval in Europe.
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a biopharmaceutical company developing precision medicines for rare genetic obesity disorders.
11. Klaviyo, Inc. (NYSE:KVYO)
Market Capitalization: $9.71 billion
Number of Hedge Fund Holders: 41
Klaviyo, Inc. (NYSE:KVYO) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 20, Klaviyo, Inc. (NYSE:KVYO) announced the general availability of its enhanced Model Context Protocol server.
This new server allows marketers to connect popular AI tools like Claude Desktop, Cursor, and VS Code directly with the company’s CRM system. Moreover, the management noted that the server helps marketers use AI without requiring any technical skills. It provides real-time data access, allowing marketers to ask AI questions in natural language and get instant, actionable answers.
The server can also be used to set up and update profiles, and marketers can build campaigns and analyze performance quickly using AI. Management noted that the aim is to make AI practical and seamless for marketing teams.
Klaviyo, Inc. (NYSE:KVYO) provides a customer relationship management platform designed specifically for business-to-consumer brands.
10. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Market Capitalization: $6.804 billion
Number of Hedge Fund Holders: 45
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 25, J.P. Morgan analyst Jessica Fye raised the price target on Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) from $48 to $49, while maintaining a Hold rating on the stock.
The analyst noted that the recent FDA approval of Dawnzera for hereditary angioedema is a positive step for the company. The key advantage of the drug is its long dosing interval, which is expected to help the company gain market share despite tough competition. However, regardless of this positive development, the analyst remains cautious on the stock due to the pricing of the drug. Fye noted that the price is much higher than initially expected, which raises doubts about how quickly the patients would switch to this treatment.
The analyst also highlighted that although the warning labels for the drug are in line with expectations, the market reaction is still uncertain. The FDA approved Dawnzera on August 21, and the stock has fallen around 3.28% since then.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) develops medicines for serious diseases, focusing on neurologic and cardiovascular conditions.
9. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Market Capitalization: $7.492
Number of Hedge Fund Holders: 46
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 20, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) announced signing an exclusive global license agreement with Saniona for the development and commercialization of SAN2355. The market has taken the news positively as the stock price has gone up by more than 4.5% since the announcement.
As per the transaction details, Saniona will receive an upfront payment of $42.5 million and will also be eligible to earn up to $192.5 million in development and regulatory milestones and up to $800 million in commercial sales milestones. On the other hand, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) obtains exclusive worldwide rights to develop and commercialize preclinical asset SAN2355 in epilepsy and other potential indications.
The CEO of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) noted that SAN2355 is a unique asset that could become a best-in-class epilepsy treatment, expanding Jazz’s neuroscience pipeline. SAN2355 is a selective small molecule that activates potassium channels called Kv7.2 and Kv7.3. These channels help control nerve cell excitability and are a validated target for suppressing seizures in epilepsy.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a global biopharmaceutical company focused on developing and commercializing medicines for people with serious diseases, especially where only a few treatment options exist.
8. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Market Capitalization: $9.361 billion
Number of Hedge Fund Holders: 47
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 19, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) announced receiving a conditional marketing authorization for Rezdiffra from the European Commission. Rezdiffra treats adults with noncirrhotic MASH and moderate to advanced liver fibrosis. Wall Street has been bullish on the stock, and the stock has surged more than 8.5% since the announcement.
Recently, on August 20, Leerink Partners analyst Thomas Smith maintained a Buy rating on Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) without disclosing any price target. The analyst noted that the approval is important because it allows treatment for noncirrhotic MASH without needing a biopsy. Moreover, Rezdiffra is now the first and only therapy approved for MASH in Europe and also fits well with the European treatment guidelines.
Management also plans to start selling the treatment in Germany and then expand across Europe.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biotechnology company that develops treatments for metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease.
7. EPAM Systems, Inc. (NYSE:EPAM)
Market Capitalization: $9.597 billion
Number of Hedge Fund Holders: 48
EPAM Systems, Inc. (NYSE:EPAM) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 7, EPAM Systems, Inc. (NYSE:EPAM) reported results for its fiscal second quarter of 2025. The company topped Wall Street’s revenue and EPS expectations. Analysts have been bullish and the stock price has surged around 9.36% since the announcement.
The company delivered a quarterly revenue of $1.35 billion, reflecting 18.04% year-over-year growth and ahead of expectations by $20.09 million. The EPS of $2.77 also exceeded expectations by $0.16. Management noted that this marks the third consecutive quarter of organic growth driven by AI-led solutions and modernization efforts. The company also raised its full-year revenue growth forecast to between 13% and 15%.
Recently, on August 20, JPMorgan maintained a Buy rating on EPAM Systems, Inc. (NYSE:EPAM); however, it lowered the price target from $205 to $201. The firm noted that this reduced price target reflects their upgraded model for the IT services sector in general, post the Q2 earnings. The firm believes that the sector needs an improvement in growth to drive higher valuation multiples.
EPAM Systems, Inc. (NYSE:EPAM) is a global company that provides digital engineering, cloud, and AI-enabled transformation services.
6. ServiceTitan, Inc. (NASDAQ:TTAN)
Market Capitalization: $9.398 billion
Number of Hedge Fund Holders: 51
ServiceTitan, Inc. (NASDAQ:TTAN) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. The company released its fiscal first quarter results for 2026 on June 5, 2025. ServiceTitan, Inc. (NASDAQ:TTAN) topped Wall Street’s revenue and EPS estimates by $7 million and $0.06, respectively. However, the stock price has fallen more than 11% since the announcement, leading to a cautious sentiment from the analysts.
Recently, on August 20, Josh Baer, an analyst from Morgan Stanley, maintained a Hold rating on ServiceTitan, Inc. (NASDAQ:TTAN) with a price target of $109. He noted that the company delivered strong execution in Q1 and appears well-positioned in AI and residential markets. However, the stock has declined more than 20% over the past 3 months, which is greater than what other SMID Cap stocks have experienced.
Baer believes that the company has the potential to continue growing, especially as it moves into new trades and business areas. However, the medium-term expectations remain high, which limits the upside, therefore justifying a Hold rating of Josh Baer.
ServiceTitan, Inc. (NASDAQ:TTAN) provides a cloud-based software platform for contractors to manage their businesses. The company’s platform covers workflows like scheduling, dispatching, invoicing, payment processing, and marketing automation.
5. Roivant Sciences Ltd (NASDAQ:ROIV)
Market Capitalization: $8.085 billion
Number of Hedge Fund Holders: 54
Roivant Sciences Ltd (NASDAQ:ROIV) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 11, Roivant Sciences Ltd (NASDAQ:ROIV) reported its financial and business update for the fiscal first quarter of 2025.
The company reported several positive business updates, including the Brepocitinib VALOR Phase 3 study for dermatomyositis remaining on track for topline data in the second half of 2025. Moreover, Immunovant, which is a subsidiary of Roivant Sciences Ltd (NASDAQ:ROIV), started new registrational trials for IMVT-1402 in Graves’ disease and Sjögren’s disease, with all other trials progressing well.
The company had $4.5 billion in cash and marketable securities as of June 30, 2025. Management believes this supports the cash runway into profitability.
Roivant Sciences Ltd (NASDAQ:ROIV) is a biopharmaceutical company that develops and commercializes innovative medicines by building focused subsidiary companies called Vants.
4. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Market Capitalization: $9.235 billion
Number of Hedge Fund Holders: 58
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 5, BridgeBio Pharma, Inc. (NASDAQ:BBIO) reported results for its fiscal second quarter of 2025. Wall Street is bullish on the stock, and the share price has appreciated by around 5.5% since the announcement.
Recently, on August 13, Cantor Fitzgerald analyst Eric Schmidt FCA initiated coverage on BridgeBio Pharma, Inc. (NASDAQ:BBIO) with a Buy rating. The company reported $110.6 million in revenue, which nearly doubled from the previous quarter, driven by increased uptake. In addition, the management reported strong growth in Attruby, with 3,751 unique patient prescriptions as of August 1, 2025.
The company also released results from a new analysis from the ATTRibute-CM study, which reinforced its clinical strength. Results showed a 59% relative risk reduction for serious events in variant ATTR-CM patients treated with Attruby. BridgeBio Pharma, Inc. (NASDAQ:BBIO) ended Q2 with $756.9 million in cash, well-positioned to support Attruby’s growth and upcoming trial readouts.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biopharmaceutical company that discovers, develops, tests, and delivers transformative medicines for patients with genetic diseases.
3. Verona Pharma plc (NASDAQ:VRNA)
Market Capitalization: $8.976 billion
Number of Hedge Fund Holders: 59
Verona Pharma plc (NASDAQ:VRNA) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On July 9, Verona Pharma plc (NASDAQ:VRNA) announced that it will be acquired by Merck (NYSE:MRK) in a transaction valued at around $10 billion.
Recently, on August 14, H.C. Wainwright analyst Raghuram Selvaraju downgraded Verona Pharma plc (NASDAQ:VRNA) from Buy to Neutral; however, he raised the price target from $90 to $107. The analyst noted the rating is due to Merck acquiring the company for $107 per American Depositary Share, which represents eight Verona Pharma ordinary shares.
The acquisition will give Merck access to Ohtuvayre, a new drug approved by the FDA in June 2024. The CEO of Verona Pharma plc (NASDAQ:VRNA) noted the rapid uptake of Ohtuvayre since its launch in August 2024 in the US and believes Merck’s scale will help reach more patients.
Verona Pharma plc (NASDAQ:VRNA) is a biopharmaceutical company that develops innovative treatments for chronic respiratory diseases. Their first commercial product is Ohtuvayre, which is an inhaled therapy for COPD.
2. monday.com Ltd. (NASDAQ:MNDY)
Market Capitalization: $9.211 billion
Number of Hedge Fund Holders: 67
monday.com Ltd. (NASDAQ:MNDY) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 11, monday.com Ltd. (NASDAQ:MNDY) released results for its fiscal second quarter of 2025. The company topped Wall Street estimates with revenue of $299.01 million, ahead by $5.43 million, and EPS of $1.09, ahead by $0.23. However, the share price has fallen more than 29% since the release, mainly due to the challenges related to AI search changes.
Recently, on August 21, Josh Baer of Morgan Stanley maintained a Buy rating on monday.com Ltd. (NASDAQ:MNDY), retaining the price target of $260. The analyst acknowledged the recent drop in the stock after the Q2 results. However, he views this as a good chance to invest at a lower price, taking confidence from the company’s solid growth potential.
He highlighted that analysts are debating if the company can keep growing at over 20%. Baer noted that after talking with investors and the company’s investor relations team, he is optimistic that the challenges related to AI search are only temporary. He believes that the company has the potential to grow and expand its market reach through its product line-up. Lastly, the stock is cheaper than many competitors, thereby presenting an attractive entry point as per analyst Baer of Morgan Stanley.
monday.com Ltd. (NASDAQ:MNDY) is a software company that offers a cloud-based platform for creating custom applications and project management tools.
1. Revolution Medicines, Inc. (NASDAQ:RVMD)
Market Capitalization: $6.806 billion
Number of Hedge Fund Holders: 71
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On August 6, Revolution Medicines, Inc. (NASDAQ:RVMD) released its financial and business update for the fiscal second quarter of 2025. The company reported advancement in its key drug Daraxonrasib, which is currently in Phase 3 trials for patients with pancreatic ductal adenocarcinoma and non-small cell lung cancer.
Wall Street is optimistic regarding this clinical-stage company, with analysts’ average 12-month price target of $72 representing 101.23% upside from the current level.
Recently, on August 15, Wells Fargo initiated coverage of Revolution Medicines, Inc. (NASDAQ:RVMD) with a Buy rating and a $67 price target. The firm noted that the company has worked on a de-risked profile for this drug, meaning that it has a lower chance of failure. The firm expects a positive result from the Phase 3 trial, which is due in 2026.
Revolution Medicines, Inc. (NASDAQ:RVMD) develops targeted cancer therapies for RAS-addicted cancers. They create drugs called RAS(ON) inhibitors that directly target specific RAS mutations.
While we acknowledge the potential of RVMD 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 RVMD and that has 100x upside potential, check out our report about this cheapest AI stock.
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