In this article, we discuss 5 best mid cap stocks to buy in 2022. If you want our detailed analysis of these stocks, go directly to 10 Best Mid Cap Stocks To Buy In 2022.
5. Calix, Inc. (NYSE:CALX)
Market Capitalization as of February 15: $3.396 billion
Number of Hedge Fund Holders: 25
Headquartered in San Jose, California, Calix, Inc. (NYSE:CALX) is a company that offers cloud-based software platforms and services to communications providers in North America and internationally.
On January 26, Calix, Inc. (NYSE:CALX) posted its Q4 earnings, reporting an EPS of $0.26, beating estimates by $0.02. The $176.42 million revenue exceeded market consensus by $2.50 million.
Craig-Hallum analyst Christian Schwab upgraded Calix, Inc. (NYSE:CALX) to Buy from Hold on January 28 and maintained a $55 price target following the Q4 results. The company reported better than expected Q4 results and guided Q1 ahead of expectations despite gross margin headwinds, Schwab told investors in a bullish note.
In Q3 2021, Driehaus Capital was the largest stakeholder of Calix, Inc. (NYSE:CALX), owning more than 2 million shares of the company, worth over $100 million. Overall, 25 hedge funds held long positions in Calix, Inc. (NYSE:CALX) in the third quarter of 2021, up from 23 funds in the quarter earlier.
4. Skyline Champion Corporation (NYSE:SKY)
Market Capitalization as of February 15: $4.172 billion
Number of Hedge Fund Holders: 26
Skyline Champion Corporation (NYSE:SKY) is a leading North American homebuilder that provides manufactured homes, park-model RVs, and modular housing sectors, with customers including families, the working class, seniors, and the hospitality industry.
On February 2, Skyline Champion Corporation (NYSE:SKY) posted its Q4 results, reporting an EPS of $1.18, topping estimates by $0.45. Revenue for the period jumped 41.61% year-over-year to $534.69 million, outperforming estimates by $35.89 million.
Craig-Hallum analyst Greg Palm lifted the price target on Skyline Champion Corporation (NYSE:SKY) to $111 from $103 and kept a Buy rating on the shares on February 4. According to the analyst, Skyline Champion Corporation (NYSE:SKY) will be a beneficiary of rising rates and inflation, and a higher stock price is supported by estimate revisions and valuation levels, despite tough overall market conditions.
26 hedge funds were Skyline Champion Corporation (NYSE:SKY) in the third quarter of 2021, up from 23 funds in the quarter earlier. MAK Capital One was the leading Skyline Champion Corporation (NYSE:SKY) stakeholder as of Q3 2021, with 3 million shares worth $180 million.
Here is what Wasatch Global Investors has to say about Skyline Champion Corporation (NYSE:SKY) in its Q2 2021 investor letter:
“Moreover, we think our high-quality companies are better able to deal with supply-chain challenges and raise prices while still maintaining or increasing market share in an inflationary environment. For example, Skyline Champion Corp. (SKY)—which constructs affordable homes and modular buildings—was able to raise prices continually as lumber costs rose. And now that lumber costs are falling, home prices are steady or increasing so the company’s margins are expanding. Skyline has most of the business characteristics that we find ideal, including: (1) strong revenue and earnings growth with continued headroom; (2) rising margins; (3) a reasonable stock price; and (4) significant potential over time for investors to pay higher and higher price/earnings multiples on the stock.”
3. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Market Capitalization as of February 15: $9.527 billion
Number of Hedge Fund Holders: 36
DICK’S Sporting Goods, Inc. (NYSE:DKS) is a Pennsylvania-based sporting goods retailer offering sporting apparel and accessories, fitness equipment, golf equipment, and hunting and fishing gear products.
On November 23, DICK’S Sporting Goods, Inc. (NYSE:DKS) declared a $0.4375 per share quarterly dividend, which was paid on December 29, to shareholders of record on December 10.
Truist analyst Beth Reed raised the price target on DICK’S Sporting Goods, Inc. (NYSE:DKS) on January 7 to $168 from $161 and kept a Buy rating on the shares. The company’s post-holiday update should alleviate concerns some investors had around slowing sales and traffic trends during the peak holiday selling period, the analyst told investors in a research note. She continues to see multiple longer-term tailwinds for DICK’S Sporting Goods, Inc. (NYSE:DKS) and believes that sales and margins have been reset higher in a post-pandemic environment.
According to the Q3 database of Insider Monkey, 36 hedge funds were bullish on DICK’S Sporting Goods, Inc. (NYSE:DKS), holding collective stakes worth $1.61 billion. Atreides Management is a significant stakeholder of DICK’S Sporting Goods, Inc. (NYSE:DKS) as of Q3 2021, with 3.2 million shares valued at $386.6 million.
2. Crocs, Inc. (NASDAQ:CROX)
Market Capitalization as of February 15: $5.751 billion
Number of Hedge Fund Holders: 37
Crocs, Inc. (NASDAQ:CROX) is a Colorado-based company involved in wholesale shoe trade, retail and consumer services, clothing, and accessories. In Q3 2021, 37 hedge funds were bullish on Crocs, Inc. (NASDAQ:CROX), with collective stakes amounting to over $1 billion. Arrowstreet Capital held a leading position in Crocs, Inc. (NASDAQ:CROX), with more than 1 million shares worth $163.7 million.
On February 1, Loop Capital analyst Laura Champine lowered the price target on Crocs, Inc. (NASDAQ:CROX) to $150 from $190 but kept a Buy rating on the shares. The stock price remains “attractive” given her projected double-digit longer-term EPS growth rate and with shares trading at 10-times expected 2022 EPS, the analyst told investors in a bullish note.
Crocs, Inc. (NASDAQ:CROX) announced on December 23 that it has entered into a definitive agreement to acquire HEYDUDE, a privately-owned casual footwear brand, for $2.5 billion. The purchase will be funded by $2.05 billion in cash and $450 million in Crocs, Inc. (NASDAQ:CROX) shares.
1. Globus Medical, Inc. (NYSE:GMED)
Market Capitalization as of February 15: $6.846 billion
Number of Hedge Fund Holders: 37
Globus Medical, Inc. (NYSE:GMED) is a company that manufactures medical devices for surgeons to treat patients with musculoskeletal disorders. A total of 37 hedge funds were bullish on Globus Medical, Inc. (NYSE:GMED) in Q3 2021, up from 35 funds in the prior quarter. Polar Capital held the largest stake in Globus Medical, Inc. (NYSE:GMED) as of September 2021, with 714,037 shares worth $54.71 million.
On January 21, UBS analyst Matthew Taylor kept a Buy rating and a $91 price target on Globus Medical, Inc. (NYSE:GMED) as part of a broader research note on Medical Supplies and Devices. Market surveys according to the analyst suggest that Globus Medical, Inc. (NYSE:GMED) is set to gain the highest market share in the sector.
Here is what Madison Small Cap Fund has to say about Globus Medical, Inc. (NYSE:GMED) in their Q4 2020 investor letter:
“Healthcare continued its streak of underperformance in the fourth quarter. The biotech industry component of the Russell 2000 was up 34% for the quarter and 53% for the year. While we have become more open to investing in this space where appropriate, we prefer molecular diagnostics given less regulatory risk and better revenue diversification. With the new administration comes a shift in healthcare philosophy. We believe that further access to care and coverage expansion will benefit some parts of the sector. However, the risk of further reimbursement cuts, particularly in pharmaceuticals, will bear monitoring.
Our favorite healthcare stock for 2021 is Globus Medical, a provider of spine implants and robotic solutions in the orthopedic industry. This stock has been a disappointing investment in the three years that we have held it. Though, the company itself has executed extremely well. We think this name is a “coiled spring” in a reopening scenario as management played aggressive offense in 2020. They aggressively have grown their sales force and did not hunker down during the pandemic. Recent quarters suggest that the company has taken considerable share, and this should bear fruit as surgical volumes resume in 2021 and 2022.”
You can also take a look at 10 Best Fertilizer Stocks To Buy Now and 10 Best Monthly Dividend Stocks to Buy for 2022.
