In this article, we will look at the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio.
On June 24, CNBC reported that Federal Reserve chair Jerome Powell stated on Tuesday that he anticipates policymakers to stay on hold until it becomes clear what impact tariffs may have on prices. Powell is set to deliver remarks to two congressional committees this week.
Talking about the current circumstances, the chair stated that the labor market appears to be around full employment, and economic growth is strong. However, he also acknowledged that inflation is still lurking above the Fed’s target of 2% and that the possible effects of Trump’s tariffs are still murky.
“Policy changes continue to evolve, and their effects on the economy remain uncertain,” Powell said. “The effects of tariffs will depend, among other things, on their ultimate level.”
READ ALSO: 13 Best Long-Term Penny Stocks to Buy According to Analysts and 13 Small Cap Stocks Analysts Are Bullish On.
On inflation, he said that it is likely for the Fed’s preferred measure to move up to 2.3% in May, with the core measure rising to 2.6%, excluding energy and food. The April readings were 2.1% and 2.5%, respectively. He further stated that policymakers are “well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
Amid these uncertain trends in the market, let’s look at the 13 cheap mid-cap stocks to add to your portfolio.
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Our Methodology
We used the Finviz stock screener to compile a list of mid cap stocks with a forward P/E below 15 and chose the top 13 with the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund data from Insider Monkey’s database. The list is arranged in ascending order of number of hedge fund holders for each stock.
Note: All data was sourced on June 24.
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 Cheap Mid-Cap Stocks to Add to Your Portfolio
13. Old Republic International Corporation (NYSE:ORI)
Market Cap: $9.22 billion
Forward P/E: 11.76
Number of Hedge Fund Holders: 32
Old Republic International Corporation (NYSE:ORI) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On April 28, Raymond James analyst Gregory Peters reiterated a Buy rating on Old Republic International Corporation (NYSE:ORI), raising the price target to $42 from $40.
The analyst told investors in a research note that the firm sees positive results with a relatively inexpensive stock valuation and an active capital management program.
The firm also stated that the operating outlook for Old Republic International Corporation (NYSE:ORI) is still strong over the coming two years. It considers the title segment as still an undervalued call option upon the housing market’s recovery.
Old Republic International Corporation (NYSE:ORI) engages in the insurance underwriting business and operates through the following segments: General Insurance, Title Insurance, Republic Financial Indemnity Group (RFIG) Run-Off, and Corporate and Other.
12. LKQ Corporation (NASDAQ:LKQ)
Market Cap: $9.59 billion
Forward P/E: 10.6
Number of Hedge Fund Holders: 33
LKQ Corporation (NASDAQ:LKQ) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 24, LKQ Corporation (NASDAQ:LKQ) announced a joint venture between LKQ Europe and SYNETIQ Ltd., an IAA company. LKQ Europe distributes automotive aftermarket parts for commercial vans, cars, and industrial vehicles in Europe, while SYNETIQ is a UK-based vehicle dismantling, recycling, and salvage company.
LKQ Corporation (NASDAQ:LKQ) reported that the joint venture, named LKQ SYNETIQ, would bring together SYNETIQ’s expertise in dismantling, reusing, and remanufacturing and LKQ Europe’s data-driven logistics network and distribution reach.
Management stated that the joint venture is expected to be a key building block for the development of LKQ Europe’s salvage channel, along with its ability to comply with future EU Fit-for-55, End-of-Life Vehicle, and battery-recycling regulations. The venture would also position SYNETIQ to achieve its strategic goal of maximizing the financial and environmental potential of every vehicle.
LKQ Corporation (NASDAQ:LKQ) distributes vehicle products and parts for maintenance, repair, and accessorizing automobiles. The company operates in the following segments: Wholesale-North America, Europe, Specialty, and Self Service.
11. Ingredion Incorporated (NYSE:INGR)
Market Cap: $8.83 billion
Forward P/E: 12.35
Number of Hedge Fund Holders: 36
Ingredion Incorporated (NYSE:INGR) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 18, Univar Solutions Belgium N.V. announced the expansion of a partnership between its Foodology by Univar Solutions business and Ingredion Incorporated (NYSE:INGR) for distribution in the Benelux region. Univar Solutions is a leading provider of global solutions for specialty chemicals and ingredients, while Ingredion Incorporated (NYSE:INGR) is a global provider of ingredients for the beverage and food industries.
According to the announcement, the distribution expansion would be effective October 1 and is expected to bring in a comprehensive list of clean label and plant-based products, including plant-based proteins, the innovative Novation® range of functional native starches, and more, in response to the rising consumer demand for sugar reduction and clean label ingredients.
Ingredion Incorporated (NYSE:INGR) is a global ingredients solutions provider that transforms fruits, vegetables, grains, and other plant-based materials into value-added ingredient solutions for several markets, including food, beverage, animal nutrition, brewing, and industrial markets. The company’s products are primarily derived from the processing of corn and other starch-based materials, including rice, potato, and tapioca. It operates through four segments: North America, South America, Asia-Pacific, and Europe, Middle East and Africa (EMEA).
10. Avantor, Inc. (NYSE:AVTR)
Market Cap: $9.25 billion
Forward P/E: 13.12
Number of Hedge Fund Holders: 38
Avantor, Inc. (NYSE:AVTR) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. In a report released on June 9, Tycho Peterson from Jefferies maintained a Buy rating on Avantor, Inc. (NYSE:AVTR) with a price target of $20.00. The company’s fiscal Q1 2025 results reflected a continued focus on cost management amid concerns about the dynamic macroenvironment, along with disciplined execution.
Net income for the quarter reached $64.5 million, while adjusted EBITDA was $269.5 million. Avantor, Inc. (NYSE:AVTR) also reported an expansion in its cost transformation initiative and anticipates $400 million in gross run-rate savings by the end of 2027.
Avantor, Inc. (NYSE:AVTR) is a life sciences tools company that provides mission-critical services and products to the advanced technology and life sciences industries. The company’s portfolio includes education and government, biopharma, healthcare, and applied materials and advanced technologies industries.
9. Regal Rexnord Corporation (NYSE:RRX)
Market Cap: $9.27 billion
Forward P/E: 14.33
Number of Hedge Fund Holders: 38
Regal Rexnord Corporation (NYSE:RRX) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 23, Citi analyst Kyle Menges maintained a Buy rating on Regal Rexnord Corporation (NYSE:RRX) and raised the price target to $165 from $145. The firm stated that it updated its price targets and machinery views in accordance with the current environment.
The company’s strong financials support the optimistic outlook, as it reported diluted EPS of $0.86 in fiscal Q1 2025 and adjusted diluted EPS of $2.15 for the quarter, up 7.5% compared to the previous year.
Regal Rexnord Corporation (NYSE:RRX) delivered gains in adjusted gross margin and grew free cash flow by 32%. It also paid down $164 million of gross debt. All these factors reflect the company’s solid execution and disciplined cost management.
Regal Rexnord Corporation (NYSE:RRX) engineers and manufacturers industry powertrain solutions, factory automation sub-systems, electric motors and electronic controls, automation and mechanical power transmission components, air moving products, and specialty electrical components and systems. The company’s operations are divided into the following segments: Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), and Automation and Motion Control (AMC).
8. Primerica, Inc. (NYSE:PRI)
Market Cap: $8.58 billion
Forward P/E: 12.73
Number of Hedge Fund Holders: 40
Primerica, Inc. (NYSE:PRI) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. In a report released on June 3, Suneet Kamath from Jefferies maintained a Hold rating on Primerica, Inc. (NYSE:PRI) with a price target of $290.
The company’s fiscal Q1 2025 results showed a 7% year-over-year growth in the life-licensed sales force to 152,167, while revenue for the quarter was $804.8 million, up 9% compared to fiscal Q1 2024. Investment and Savings Products sales also grew 28% to a record $3.6 billion.
Management expects Primerica, Inc. (NYSE:PRI) to demonstrate resilience in the face of increasing economic uncertainty, supported by its personalized client support and balanced business model.
Primerica, Inc. (NYSE:PRI) provides financial products to middle-income households and operates through the segments Term Life Insurance, Investment and Savings Products, Senior Health, and Corporate and Other Distributed Products.
7. Webster Financial Corporation (NYSE:WBS)
Market Cap: $8.75 billion
Forward P/E: 9.26
Number of Hedge Fund Holders: 42
Webster Financial Corporation (NYSE:WBS) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 10, Citi analyst Ben Gerlinger maintained a Buy rating on Webster Financial Corporation (NYSE:WBS) and set a price target of $65.00.
The company reported revenues of $704.8 million in fiscal Q1 2025, while period-end loans and leases balance rose $0.6 billion to $53.1 billion.
Net income applicable to common stockholders for the quarter reached $220.4 million compared to $210.1 million last year. This translates to $1.30 per diluted share, compared to $1.23 per diluted share for the quarter ended March 31, 2024.
Webster Financial Corporation (NYSE:WBS) provides financial services to families, individuals, and businesses. The company’s operations are divided into the following business segments: Commercial Banking, HSA Bank, and Retail Banking.
6. Mr. Cooper Group Inc. (NASDAQ:COOP)
Market Cap: $9.54 billion
Forward P/E: 11.67
Number of Hedge Fund Holders: 43
Mr. Cooper Group Inc. (NASDAQ:COOP) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On May 20, BTIG analyst Eric Hagen maintained a Hold rating on Mr. Cooper Group Inc. (NASDAQ:COOP) without a price target. The rating came despite the company surpassing earnings expectations, with a reported EPS of $2.97, compared to expectations of $2.81.
Mr. Cooper Group Inc. (NASDAQ:COOP) also reported income before income tax expense of $95 million and net income of $88 million in fiscal Q1 2025. Pretax operating income came up to $255 million, excluding other mark-to-market and other adjustments.
Mr. Cooper Group Inc. (NASDAQ:COOP) provides residential loan services and operates through the segments Servicing and Originations. The Servicing segment manages the collection of loan payments, management of escrow funds for the payment of mortgage-related expenses, remittance of principal and interest payments to investors, and more. The Originations segment, in contrast, offers refinance opportunities to existing servicing customers.
5. The Interpublic Group of Companies, Inc. (NYSE:IPG)
Market Cap: $8.66 billion
Forward P/E: 9.28
Number of Hedge Fund Holders: 44
The Interpublic Group of Companies, Inc. (NYSE:IPG) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 23, The Interpublic Group of Companies, Inc. (NYSE:IPG) reported that the Federal Trade Commission (FTC) approved Omnicom Group’s $13.5 billion acquisition of IPG. The acquisition would result in the combination of two of the top four advertising holding companies in the US, with the resulting entity taking the lead as the largest media buying agency in the world with a combined annual revenue of around $25 billion.
The acquisition was initially announced in December 2024, and the two companies expect it to conclude in the second half of 2025. The FTC approved on the unique condition that the merged company can not steer ad dollars away from media outlets on the basis of ideological or political viewpoints.
The Interpublic Group of Companies, Inc. (NYSE:IPG) provides communications, marketing, and business transformation services. The company’s operations are divided into the following segments: Media, Data, and Engagement Solutions, Integrated Advertising and Creativity Led Solutions, and Specialized Communications and Experiential Solutions.
4. Molson Coors Beverage Company (NYSE:TAP)
Market Cap: $9.74 billion
Forward P/E: 8
Number of Hedge Fund Holders: 45
Molson Coors Beverage Company (NYSE:TAP) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 23, Piper Sandler lowered the firm’s price target on Molson Coors Beverage Company (NYSE:TAP) to $53 from $58, keeping a Neutral rating on the shares.
The analyst told investors in a research note that Molson Coors Beverage Company (NYSE:TAP) is exhibiting a continually slowing retail momentum. Q2-to-date US retail volumes dropped around 5%, with the company lapping elevated shipments from a year ago.
In addition, aluminum prices are resulting in cost pressure behind increased Midwest Premium rates. The firm also noted that these circumstances are materializing at a time when the US beer category is experiencing pressure from societal shifts and macroeconomic factors.
Molson Coors Beverage Company (NYSE:TAP) produces and sells beer. The company operates through the Americas, EMEA, and APAC geographical segments.
3. Henry Schein, Inc. (NASDAQ:HSIC)
Market Cap: $8.76 billion
Forward P/E: 14.76
Number of Hedge Fund Holders: 50
Henry Schein, Inc. (NASDAQ:HSIC) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On June 16, Leerink Partners analyst Michael Cherny maintained a Hold rating on Henry Schein, Inc. (NASDAQ:HSIC) and set a price target of $69.00.
The company also announced the successful completion of a $250 million strategic investment on May 16, which was extended by funds affiliated with KKR, a leading global investment firm. The closing of the transaction made KKR the holder of around 12% of the company’s common shares.
Henry Schein, Inc. (NASDAQ:HSIC) reported a 22% growth in GAAP diluted EPS for fiscal Q1 2025, reaching $0.88. Non-GAAP diluted EPS for the quarter underwent a 4.5% rise to $1.15 when compared to the same period last year.
Henry Schein, Inc. (NASDAQ:HSIC) is also advancing its BOLD+1 Strategic Plan, refreshing it for the 2025 to 2027 period. The plan focuses on expanding the company’s corporate brand products and dental and medical specialty businesses, growing its distribution business by improving customer experience and rising operational efficiency, and developing its digital solutions and digital footprint.
Henry Schein, Inc. (NASDAQ:HSIC) provides healthcare services and products to medical, veterinary, and dental office-based practitioners. It operates in the Healthcare Distribution and Technology and Value-Added Services business segments.
2. WESCO International, Inc. (NYSE:WCC)
Market Cap: $8.69 billion
Forward P/E: 13.73
Number of Hedge Fund Holders: 51
WESCO International, Inc. (NYSE:WCC) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. In a report released on June 13, Kenneth Newman from KeyBanc maintained a Buy rating on WESCO International, Inc. (NYSE:WCC), raising the price target to $210 from $180. The rating update came after the company reported an eventful fiscal Q1 earnings season, along with the firm’s Industrials and Basic Materials Conference in Boston.
The analyst told investors that while broader macroeconomic uncertainty remains high amid fluid global trade dynamics, recent data points associated with its coverage have come in better than initially feared.
WESCO International, Inc. (NYSE:WCC) provides business-to-business logistics services, distribution services, and supply chain solutions. Its operations are divided into the following segments: Electrical and Electronic Solutions (EES), Communications and Security Solutions (CSS), and Utility and Broadband Solutions (UBS).
1. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Market Cap: $9.79 billion
Forward P/E: 6.79
Number of Hedge Fund Holders: 60
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the 13 Cheap Mid-Cap Stocks to Add to Your Portfolio. On April 10, analyst Michael Cherny of Leerink Partners reiterated a Hold rating on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), retaining the price target of $11.50. The analyst based the rating on the company’s strategic developments and recent performance.
He stated that the company’s pharmacy segment underwent significant growth with a rise in comparable prescriptions, especially in the back of the store. However, the store’s front experienced challenges, including a fall in the sale of discretionary items. This affected overall retail sales.
The analyst also reasoned that while Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is showing positive momentum in its international operations, they were offset by a rise in investments in technology and payroll. The US Healthcare segment, however, exhibited improved profitability, which Cherny attributed to contributions from Shields and VillageMD.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) also announced a definitive agreement to be acquired by Sycamore Partners in March in a transaction valued at up to $23.7 billion.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American multinational company providing retail, pharmacy, and healthcare services. The company has approximately 12,500 locations across the US, Europe, and Latin America. Its brand portfolio includes well-known brands such as Walgreens, Boots, Duane Reade, and Benavides.
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Disclosure: None.
