Markets

Insider Trading

Hedge Funds

Retirement

Opinion

14 Best Mid-Cap Stocks To Buy Now

In this article, we will look at the 14 best mid-cap stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Mid-Cap Stocks To Buy Now.

Mid-cap stocks may be thought of as the “sweet spot” between the rampant volatility of small-caps and the stability of large-caps. According to data from Alger, mid-cap stocks have outperformed both small-cap and large-cap stakes based on risk-adjusted returns. Between 1990 and 2020, the Sharpe ratio, a measure of performance relative to risk, for mid-cap stocks was higher than that of both small-cap and large-cap stocks. Mid-cap stocks had a Sharpe ratio of 0.60, while small-caps had a Sharpe ratio of 0.44, and large-caps had a Sharpe ratio of 0.56. Alger researchers also pointed out that mid-cap stocks account for roughly 20% of the U.S. stock market and just 11% of U.S. mutual funds and exchange-traded funds (ETFs). This finding suggests that a lot of mid-cap companies are overlooked by the market, and investors can unlock new value in these neglected spaces.

Finding good quality companies that are overlooked by the market is a challenge. Thomas Cole, CFA and co-founder of Chicago-based investment advisory firm, Distillate Capital LLC, appeared in an interview on TD Ameritrade where he talked about his company’s small- and mid-cap equity fund and what approach are they using at Distillate Capital. Thomas Cole said that his strategy is to “focus on free cash flow” and that he looks for “better stability and better quality combined with better valuation” which is measured on the basis of free cash flow.

Some of the best profitable and cash-rich mid-cap stocks that are on investors’ and analysts’ watch lists right now include Kohl’s Corporation (NYSE:KSS), Builders FirstSource, Inc. (NASDAQ:BLDR), and Alcoa Corporation (NYSE:AA). These, among others, are discussed further in the article below.

Our Methodology

To determine the best mid-cap stocks to buy now, we screened for profitable mid-cap companies that were trading below their intrinsic values and had solid product pipelines, business models, and balance sheets. We narrowed down our selection to companies with positive market sentiment. Along with each of our picks, we have mentioned the hedge fund sentiment, analyst ratings, and top shareholders. These stocks are arranged according to their popularity among elite hedge funds.

 Best Mid-Cap Stocks To Buy Now

14. Plains All American Pipeline, L.P. (NASDAQ:PAA)

Market Cap as of October 14: $7.73 Billion

Number of Hedge Fund Holders: 5

Plains All American Pipeline, L.P. (NASDAQ:PAA) is involved in the pipeline transportation and storage of crude oil and natural gas liquids in the United States and Canada. On October 10, Plains All American Pipeline, L.P. (NASDAQ:PAA) declared a quarterly cash dividend of $0.2175 per common share. The dividend is payable on November 14 to stockholders of record on October 31. As of October 14, Plains All American Pipeline, L.P. (NASDAQ:PAA) is up 13% for the year, is offering a forward dividend yield of 7.86%, and is trading at a PE multiple of 13x. Plains All American Pipeline, L.P. (NASDAQ:PAA) has free cash flows of over $1.75 billion and is one of the best mid-cap stocks to buy now.

This August, Stifel analyst Selman Akyol upgraded Plains All American, L.P. (NASDAQ:PAA) to Buy from Hold and raised his price target to $16 from $14. On August 16, Barclays analyst Theresa Chen raised her price target on Plains All American, L.P. (NASDAQ:PAA) to $13 from $12 and reiterated an Equal Weight rating on the shares.

At the end of Q2 2022, 5 hedge funds were long Plains All American, L.P. (NASDAQ:PAA) and held stakes worth $29.79 million in the company. Of those, Arrowstreet Capital was the top shareholder in the company and had stakes worth $16.66 million.

Other profitable, cash-rich, and undervalued mid-cap stocks with strong business fundamentals include Kohl’s Corporation (NYSE:KSS), Builders FirstSource, Inc. (NASDAQ:BLDR), and Alcoa Corporation (NYSE:AA).

13. Arbor Realty Trust, Inc. (NYSE:ABR)

Market Cap as of October 14: $2.05 Billion

Number of Hedge Fund Holders: 12

Arbor Realty Trust, Inc. (NYSE:ABR) is a mortgage REIT that invests in multifamily, single-family rental, and commercial real estate markets. Wall Street is bullish on Arbor Realty Trust, Inc. (NYSE:ABR) and the stock is one of the best mid-cap stocks to buy now. On October 3, Piper Sandler analyst Crispin Love revised his price target on Arbor Realty Trust, Inc. (NYSE:ABR) to $16.50 from $18.50 and maintained an Overweight rating on the shares.

Arbor Realty Trust, Inc. (NYSE:ABR) is trading at bargain levels and is also offering a strong dividend. As of October 14, the stock has a trailing twelve-month PE ratio of 5.93 and is offering a forward dividend yield of 12.75%. The company has a trailing twelve-month operating margin of 67.8% and has free cash flows of roughly $254 million.

At the close of the second quarter of 2022, 12 hedge funds disclosed ownership of stakes in Arbor Realty Trust, Inc. (NYSE:ABR). The collective stakes of these hedge funds amounted to $74.5 million. As of June 30, Balyasny Asset Management is the largest shareholder in Arbor Realty Trust, Inc. (NYSE:ABR) and has stakes worth $19.05 million in the company.

12. Sibanye Stillwater Limited (NYSE:SBSW)

Market Cap as of October 14: $6.29 Billion

Number of Hedge Fund Holders: 16

Sibanye Stillwater Limited (NYSE:SBSW) is a leading South African metals and mining company that explores and produces s gold, nickel, copper, and chrome among other precious metals. At the end of Q2 2022, 16 hedge funds were bullish on Sibanye Stillwater Limited (NYSE:SBSW) and held stakes worth $153 million in the company.

Sibanye Stillwater Limited (NYSE:SBSW) is cash-rich, profitable, undervalued, and pays dividends. The stock is ranked high among the best mid-cap stocks to buy now. As of October 14, Sibanye Stillwater Limited (NYSE:SBSW) is trading at 5x earnings and is offering a forward dividend yield of 6.65%. The company has a trailing twelve-month operating margin of 24.06% and free cash flows of ZAR 10.05 billion.

On September 30, Investec analyst Nkateko Mathonsi upgraded Sibanye Stillwater Limited (NYSE:SBSW) to Buy from Hold and reiterated his price target of ZAR 47. On October 5, Deutsche Bank analyst Abhi Agarwal revised his price target on Sibanye Stillwater Limited (NYSE:SBSW) to $12.50 from $13 and reiterated his Buy rating on the shares.

As of June 30, Condire Investors is the top shareholder in Sibanye Stillwater Limited (NYSE:SBSW). The fund’s stakes in the company are valued at $54.6 million.

Here is what Desert Lion Capital had to say about Sibanye Stillwater Limited (NYSE:SBSW) in its second-quarter 2022 investor letter:

Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. On top of its additional gold mining operations in SA, the business has significant upside optionality in its growing lithium and nickel operations which are not yet contributing to earnings and remain unrecognized by the market in SSW’s price.

PGM and gold prices are lower than a year ago and Sibanye Stillwater’s earnings followed suit. Gold operations made a loss during the period due to a wage negotiation labor strike (see chart on next page). Notwithstanding all these headwinds, the company reported H1 2022 earnings per share of R4.23 which was in line with the six months ended December 2021 EPS…” (Click here to see the full text)

11. Newell Brands Inc. (NYSE:NWL)

Market Cap as of October 14: $6.05 Billion

Number of Hedge Fund Holders: 22

Newell Brands Inc. (NYSE:NWL) designs and manufactures various consumer and commercial products. The company has five divisions: Commercial Solutions, Home Appliances, Home Solutions, Learning & Development, and Outdoor & Recreation. Newell Brands Inc. (NYSE:NWL) has free cash flows of $43 million and a trailing twelve-month operating margin of 10.31% and is one of the best profitable and cash-rich mid-cap stocks to invest in right now. The stock is also trading cheaply relative to earnings and as of October 14 has a trailing twelve-month PE ratio of 8.56 and is offering a forward dividend yield of 6.28%.

On September 7, Raymond James analyst Olivia Tong revised her price target on Newell Brands Inc. (NYSE:NWL) to $23 from $26 and reiterated a Strong Buy rating on the shares. On October 13, JPMorgan analyst Andrea Teixeira revised her price target on Newell Brands Inc. (NYSE:NWL) to $18 from $22 and maintained an Overweight rating on the shares.

At the close of Q2 2022, 22 hedge funds were bullish on Newell Brands Inc. (NYSE:NWL) and held stakes worth $1.46 billion in the company. Of those, Pzena Investment Management was the top shareholder in the company and had stakes worth $715.3 million.

10. Levi Strauss & Co. (NYSE:LEVI)

Market Cap as of October 14: $5.65 Billion

Number of Hedge Fund Holders: 25

On October 6, Levi Strauss & Co. (NYSE:LEVI) announced earnings for the fiscal third quarter of 2022. . The company generated a revenue of $1.52 billion and reported earnings per share of $0.40, beating estimates by $0.03. Levi Strauss & Co. (NYSE:LEVI) is a profitable business and one of the best mid-cap stocks to buy now. As of October 14, the stock is trading at a PE multiple of 10x and is awarding shareholders with a dividend yield of 3.31%. Levi Strauss & Co. (NYSE:LEVI) has free cash flows of $193.4 million and a trailing twelve-month operating margin of 12.79%.

On October 7, JPMorgan analyst Matthew Boss raised his price target on Levi Strauss & Co. (NYSE:LEVI) to $23 from $20 and reiterated an Overweight rating on the shares. This October, Wells Fargo analyst Ike Boruchow revised his price target on Levi Strauss & Co. (NYSE:LEVI) to $19 from $22 and maintained an Overweight rating on the shares.

At the end of Q2 2022, 25 hedge funds were long Levi Strauss & Co. (NYSE:LEVI) and held stakes worth $119.8 million in the company. As of June 30, Broad Bay Capital is the most prominent investor in Levi Strauss & Co. (NYSE:LEVI) and has stakes worth $22.37 million in the company.

9. Foot Locker, Inc. (NYSE:FL)

Market Cap as of October 14: $2.96 Billion

Number of Hedge Fund Holders: 28

Foot Locker, Inc. (NYSE:FL) is a leading retailer of athletic apparel and premium footwear. Wall Street analysts see material upside to Foot Locker, Inc. (NYSE:FL). This August, UBS analyst Jay Sole raised his price target on Foot Locker, Inc. (NYSE:FL) to $39 from $29 and reiterated a Neutral rating on the shares. On August 23, Credit Suisse analyst Michael Binetti raised his price target on Foot Locker, Inc. (NYSE:FL) to $40 from $31 and maintained a Neutral rating on the shares.

Foot Locker, Inc. (NYSE:FL) is trading at bargain levels and is also offering an attractive dividend yield. As of October 14, the stock has a trailing twelve-month PE ratio of 6.41 and is offering a forward dividend yield of 4.98%. Foot Locker, Inc. (NYSE:FL) is one of the best mid-cap stocks to invest in right now.

At the close of the second quarter of 2022, 28 hedge funds held stakes in Foot Locker, Inc. (NYSE:FL). The total value of these stakes amounted to $228.99 million. This is compared to 21 hedge funds in the preceding quarter with stakes worth $177.09 million. The hedge fund sentiment for the stock is positive.

As of June 30, Balyasny Asset Management is the top shareholder in Foot Locker, Inc. (NYSE:FL) and has stakes worth $55.96 million in the company.

Here is what Miller Value Partners had to say about Foot Locker, Inc. (NYSE:FL) in its first-quarter 2022 investor letter:

“Finally, Foot Locker (NYSE:FL) came under significant pressure during the quarter, with the stock down more than 50% from its highs and valuation not far from early 2020 lows. Nike continues to place a greater focus on their Direct-to-Consumer business, which will decrease their contribution to Foot Locker’s total sales, retreating to historical averages of 50% by 2023. While a near-term headwind to sales, management plans to offset the lost business by expanding distribution to other leading brands, rolling out larger neighborhood free-standing stores, and expanding two new growth banners (WSS & Atmos). WSS stores will provide an off-mall presence and focus on the rapidly growing and underserved Hispanic market. Atmos will provide Foot Locker with the ability to expand into Japan and Asia sneaker market with their digitally led business model. These new growth concepts have a combined potential to add more than $1B in sales by 2024. The company’s balance sheet remains very strong with $800M in cash and management is increasing returns to shareholders through raising the dividend by 40% and announcing a $1.2B share buyback (more than 40% of the float at current share prices). With the next 12 to 18 months as a transition period for the company, the share price weakness provides attractive reward/risk investment potential, near 3x Enterprise Value/Earnings Before Income, Taxes, Depreciation, and Amortization (EV/EBITDA) and close to a 30% normalized free cash flow yield.”

8. Toll Brothers, Inc. (NYSE:TOL)

Market Cap as of October 14: $4.67 Billion

Number of Hedge Fund Holders: 29

Toll Brothers, Inc. (NYSE:TOL) is a leading American homebuilder. At the end of the second quarter of 2022, 29 hedge funds were eager on Toll Brothers, Inc. (NYSE:TOL) and held stakes worth $625.8 million in the company. This is compared to 29 positions in the previous quarter with stakes worth $615.99 million. As of June 30, Greenhaven Associates is the largest shareholder in Toll Brothers, Inc. (NYSE:TOL) and has stakes worth $238.9 million in the company.

As of October 14, Toll Brothers, Inc. (NYSE:TOL) is trading at a PE multiple of 5x and is offering a forward dividend yield of 1.80%. The company has a trailing twelve-month operating margin of 13.40% and has free cash flows of roughly $530 million. Toll Brothers, Inc. (NYSE:TOL) is one of the best mid-cap stocks to buy now.

On August 29, Raymond James analyst Buck Horne revised his price target on Toll Brothers, Inc. (NYSE:TOL) to $56 from $75 and reiterated an Outperform rating on the shares. On September 19, KeyBanc analyst Kenneth Zener upgraded Toll Brothers, Inc. (NYSE:TOL) to Sector Weight from Underweight.

Here is what Baron Funds had to say about Toll Brothers, Inc. (NYSE:TOL) in its second-quarter 2022 investor letter:

Toll Brothers, Inc. is the leading luxury homebuilder in the U.S. Toll Brothers’ shares corrected more than 41% in the first six months of 2022. Its valuation is only 0.9 times tangible book value versus a long-term average of approximately 1.4 times book value and a peak multiple of approximately 2.0 times book value.”

7. Cleveland-Cliffs Inc. (NYSE:CLF)

Market Cap as of October 14: $7.47 Billion

Number of Hedge Fund Holders: 29

Cleveland-Cliffs Inc. (NYSE:CLF) is a leading American iron ore mining company and a flat-rolled steel producer. The stock is presenting an attractive entry point for investors and, as of October 14, is trading at a PE multiple of 2x. The company has free cash flows of $3.17 billion and a trailing twelve-month operating margin of 21.14%. Cleveland-Cliffs Inc. (NYSE:CLF) is ranked high among the best mid-cap stocks to buy now.

This September, B. Riley analyst Lucas Pipes revised his price target on Cleveland-Cliffs Inc. (NYSE:CLF) to $32 from $37 and maintained a Buy rating on the shares. On October 6, Goldman Sachs analyst Emily Chieng revised her price target on Cleveland-Cliffs Inc. (NYSE:CLF) to $19 from $23 and reiterated a Buy rating on the shares.

At the close of Q2 2022, 29 hedge funds disclosed ownership of stakes in Cleveland-Cliffs Inc. (NYSE:CLF). The collective stakes of these hedge funds amounted to $450.9 million. As of June 30, Fisher Asset Management is the most prominent investor Cleveland-Cliffs Inc. (NYSE:CLF) and has stakes worth $166.9 million in the company.

6. The Chemours Company (NYSE:CC)

Market Cap as of October 14: $4.09 Billion

Number of Hedge Fund Holders: 33

The Chemours Company (NYSE:CC) is a leading North American producer and provider of performance chemicals. The company has four business divisions: Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions. At the end of Q2 2022, 33 hedge funds were bullish on The Chemours Company (NYSE:CC) and held stakes worth $290.5 million in the company.

Wall Street analysts are positive on The Chemours Company (NYSE:CC) and it is one of the best mid-cap stocks to buy now. This September, BMO Capital analyst John McNulty revised his price target on The Chemours Company (NYSE:CC) to $46 from $55 and maintained an Outperform rating on the shares. On October 13, Goldman Sachs analyst Duffy Fischer took coverage of The Chemours Company (NYSE:CC) with a Neutral rating and a $30 price target.

Shares of The Chemours Company (NYSE:CC) have pulled back and are now presenting an attractive entry point for investors. As of October 14, the stock has a trailing twelve-month PE ratio of 4.94 and is offering a forward dividend yield of 3.79%. The company has a trailing twelve-month operating margin of 14.71% and has free cash flows of $500 million.

As of June 30, Sessa Capital is the top shareholder in The Chemours Company (NYSE:CC) and has stakes worth $96.85 million in the company.

Some of the best mid-cap stocks that investors can buy into weakness right now include The Chemours Company (NYSE:CC), Kohl’s Corporation (NYSE:KSS), Builders FirstSource, Inc. (NASDAQ:BLDR), and Alcoa Corporation (NYSE:AA).

Click to continue reading and see 5 Best Mid-Cap Stocks To Buy Now.

Suggested articles:

Disclosure: None. 14 Best Mid-Cap Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…