In this article, we will be taking a look at the 15 High Growth Mid-cap Stocks to Buy.
The US stock market is shifting as President Trump reinforces his “America First” agenda through subsidies and incentives aimed at boosting domestic manufacturing. Franklin Templeton’s Dina Ting notes that midcap stocks, which generate much of their revenue domestically, tend to benefit from this environment. She notes that growing interest in midcaps could divert investors away from crowded large-cap names, positioning midcaps as an attractive and previously overlooked growth opportunity.
In the past, mid-cap equities have outperformed their large-cap and small-cap counterparts in terms of returns. Although midcaps have behind large caps this year, Franklin Templeton points out that the S&P Mid-Cap 400 excelled on an annualized basis from 2000 to 2025. According to the company, this gap may present chances for active investors.
Hedge funds are showing signs of rotating out of large caps, according to a Reuters analysis published on November 15. The report highlights that several major hedge funds reduced exposure to mega-cap stocks in Q3 2025. Notably, Bridgewater Associates cut its holdings in two Magnificent Seven stocks by more than 50%, while increasing exposure to multiple mid-cap names.
Stocks
Our Methodology
For our methodology, we screened for stocks with market capitalizations between $2 billion and $10 billion and 5 years revenue growth of at least 30%. From this group, we selected the top 15 stocks and ranked them in ascending order based on the number of hedge fund holders as of Q3 2025, using data from the Insider Monkey 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 15 high-growth mid-cap stocks to buy.
15. LifeStance Health Group, Inc. (NASDAQ:LFST)
Number of Hedge Fund Holders: 24
Market Capitalization: $2.82 billion
Revenue Growth (5Y): 36.75%
LifeStance Health Group, Inc. (NASDAQ:LFST) is among the high growth stock.
TheFly reported on January 8 that KeyBanc analyst Steve Dechert increased the price target for LFST from $6.50 to $8.50, keeping an Overweight rating on the stock. KeyBanc described this period as a possible “year of inflection” for several firms it watches, with changes to estimates and values showing indications of stabilizing, following a difficult year for HCIT shares. The firm warned that competition and regulatory considerations may continue to put pressure on valuation multiples, but it expects ongoing positive momentum throughout the majority of its coverage.
On the same day, Canaccord analyst Richard Close increased the price target for LifeStance Health Group, Inc. (NASDAQ:LFST) from $8.00 to $9.00, maintaining a Buy rating on the stock. The firm noted that LFST might be somewhat protected from more general industry uncertainty and updated its model to take opportunities within a changing healthcare environment into consideration. The expansion of in-network access to care was also emphasized as a benefit of favorable payer policies.
LifeStance Health Group, Inc. (NASDAQ:LFST) is a U.S.‑based provider of outpatient mental health services, offering both in‑person and virtual care to children, adolescents, adults, and older adults. The company’s multidisciplinary clinicians deliver psychiatric evaluations, therapy (individual, family, group), medication management, and psychological testing for conditions like anxiety, depression, bipolar disorder, and PTSD.
14. Veracyte, Inc. (NASDAQ:VCYT)
Number of Hedge Fund Holders: 25
Market Capitalization: $3.29 billion
Revenue Growth (5Y): 34.46%
Veracyte, Inc. (NASDAQ:VCYT) is one of the high growth stocks on our list.
TheFly reported on January 5 that Guggenheim analyst Subbu Nambi raised the price target for VCYT to $50 from $45, maintaining a Buy rating on the stock. The firm updated its models and forecasts for companies in the Diagnostics and Life Sciences Tools sector based on insights gained from recent management meetings.
Separately, on January 11, Veracyte, Inc. (NASDAQ:VCYT) released preliminary full-year 2025 results and 2026 guidance. It forecasts $570 million to $582 million in sales in 2026, which is higher than the consensus of roughly $565 million and shows sustained growth momentum.
Veracyte, Inc. (NASDAQ:VCYT) is a genomic diagnostics company that develops tests to improve diagnosis and treatment decisions for thyroid, lung, and other cancers, as well as autoimmune diseases, aiming to reduce unnecessary procedures and enhance patient care through precision medicine.
13. Kinsale Capital Group, Inc. (NYSE:KNSL)
Number of Hedge Fund Holders: 26
Market Capitalization: $9.28 billion
Revenue Growth (5Y): 34.25%
Kinsale Capital Group, Inc. (NYSE:KNSL) is one of the best high growth stocks.
TheFly reported on January 15 that Wells Fargo initiated coverage of KNSL with an Overweight rating and a $490 price target. The firm cited the company’s strong growth outlook, supported by new product launches and an expanding addressable market. According to Wells, KNSL is well-positioned to surpass its competitors, and investors will find the stock’s poor 2025 performance to be a compelling starting point.
In contrast, on January 14, Cantor Fitzgerald analyst Ryan Tunis lowered their price target on Kinsale Capital Group, Inc. (NYSE:KNSL) to $422 from $470 and maintained a Neutral rating on the shares. The analyst stated that, as near-term fundamentals are anticipated to decline before recovering, early enthusiasm for insurance brokers may have been premature. Although the industry is still enticing, short-term negative adjustments to consensus organic growth are anticipated.
Kinsale Capital Group, Inc. (NYSE:KNSL) is a U.S. specialty insurance company focused on the excess and surplus (E&S) lines market, underwriting complex or hard‑to‑place commercial property and casualty risks that standard insurers avoid. It operates nationwide through independent brokers, emphasizing disciplined underwriting, proprietary technology, and strong risk selection to drive consistent profitability and growth.
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