In this article, we will look at the 5 best mid-cap stocks to buy now. If you want to explore similar stocks, you can read 14 Best Mid-Cap Stocks To Buy Now.
5. Macy’s, Inc. (NYSE:M)
Market Cap as of October 14: $4.73 Billion
Number of Hedge Fund Holders: 39
Macy’s, Inc. (NYSE:M) is a leading multinational operator of high-end department stores. The stock has pulled back significantly in 2022 and is starting to look cheap. As of October 14, Macy’s, Inc. (NYSE:M) is trading at 3x earnings and is offering a forward dividend yield of 3.50%. The company has free cash flows of over $1 billion and has a trailing twelve-month operating margin of 8.97%. Macy’s, Inc. (NYSE:M) is ranked high among the best mid-cap stocks to buy now.
Wall Street is bullish on Macy’s, Inc. (NYSE:M). This August, Evercore ISI analyst Omar Saad revised his price target on Macy’s, Inc. (NYSE:M) to $30 from $35 and reiterated an Outperform rating on the shares. On September 15, Jefferies analyst Ashley Helgans revised her price target on Macy’s, Inc. (NYSE:M) to $23 from $30 and maintained a Buy rating on the shares.
At the end of Q2 2022, 39 hedge funds were long Macy’s, Inc. (NYSE:M) and held stakes worth $966.68 million in the company. As of June 30, Renaissance Technologies is the top shareholder in Macy’s, Inc. (NYSE:M) and has stakes worth $225.7 million in the company.
4. Alcoa Corporation (NYSE:AA)
Market Cap as of October 14: $6.90 Billion
Number of Hedge Fund Holders: 39
Alcoa Corporation (NYSE:AA) is a leading American miner that produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and international markets. At the close of Q2 2022, 39 hedge funds were bullish on Alcoa Corporation (NYSE:AA) and held stakes worth $1.24 billion in the company.
On September 27, B. Riley analyst Lucas Pipes revised his price target on Alcoa Corporation (NYSE:AA) to $51 from $54 and reiterated a Neutral rating on the shares. On October 6, UBS analyst Andreas Bokkenheuser started coverage of Alcoa Corporation (NYSE:AA) with a $43 price target and a Neutral rating.
Alcoa Corporation (NYSE:AA) is trading cheaply relative to earnings and is also paying dividends. As of October 14, Alcoa Corporation (NYSE:AA) has a trailing twelve-month PE ratio of 7.96 and is offering a forward dividend yield of 1.04%. The company has a trailing twelve-month operating margin of 21.69% and has free cash flows of $1.15 billion. Alcoa Corporation (NYSE:AA) is a profitable and undervalued mid-cap stock to buy now.
As of June 30, Soroban Capital Partners is the top shareholder in Alcoa Corporation (NYSE:AA) and has stakes worth $234.54 million in the company.
3. Kohl’s Corporation (NYSE:KSS)
Market Cap as of October 14: $3.14 Billion
Number of Hedge Fund Holders: 40
Kohl’s Corporation (NYSE:KSS) operates one of the largest departmental store chains in the United States. This August, Deutsche Bank analyst Gabriella Carbone revised her price target on Kohl’s Corporation (NYSE:KSS) to $36 from $37 and reiterated a Buy rating on the shares. On September 16, JPMorgan analyst Matthew Boss raised his price target on Kohl’s Corporation (NYSE:KSS) to $30 from $28 and maintained a Neutral rating on the shares.
On August 22, one of the directors of Kohl’s Corporation (NYSE:KSS), Peter Boneparth, disclosed the purchase of 25,000 common shares of the company at $30.01 per share. The transaction was valued at $750,000. On August 23, another director of Kohl’s Corporation (NYSE:KSS), Jonas Prising disclosed the purchase of 10,000 common shares of the company at $29.67 per share. The transaction was valued at $296,700.
Shares of Kohl’s Corporation (NYSE:KSS) have pulled back and now can be the time to rack them up into weakness. As of October 14, the stock is trading at a PE multiple of 5.41 and is offering a forward dividend yield of 7.41%. The stock is one of the best mid-cap stocks to buy now.
At the end of Q2 2022, 40 hedge funds were eager on Kohl’s Corporation (NYSE:KSS) and held stakes worth $593.78 million in the company. As of June 30, HG Vora Capital Management is the top shareholder in Kohl’s Corporation (NYSE:KSS) and has stakes worth $107.07 million in the company.
2. DISH Network Corporation (NASDAQ:DISH)
Market Cap as of October 14: $6.87 Billion
Number of Hedge Fund Holders: 41
DISH Network Corporation (NASDAQ:DISH) has weakened significantly in 2022 and is now presenting an attractive entry point for investors. As of October 14, the stock has a trailing twelve-month PE ratio of 4.15. The company has a trailing twelve-month operating margin of 15.34% and is one of the best undervalued and profitable mid-cap stocks to buy now.
Wall Street analysts are bullish on DISH Network Corporation (NASDAQ:DISH). This August, Raymond James analyst Ric Prentiss revised his price target on DISH Network Corporation (NASDAQ:DISH) to $36 from $42 and reiterated a Strong Buy rating on the shares. On October 14, Deutsche Bank analyst Bryan Kraft reiterated his Buy rating and $55 price target on DISH Network Corporation (NASDAQ:DISH).
At the close of Q2 2022, 41 hedge funds held stakes in DISH Network Corporation (NASDAQ:DISH). The total value of these stakes amounted to $936.89 million. As of June 30, Eagle Capital Management is the most prominent investor in DISH Network Corporation (NASDAQ:DISH) and has stakes worth $303.33 million in the company.
1. Builders FirstSource, Inc. (NASDAQ:BLDR)
Market Cap as of October 14: $9.04 Billion
Number of Hedge Fund Holders: 53
Builders FirstSource, Inc. (NASDAQ:BLDR) is a leading American manufacturer and supplier of building materials. At the end of the second quarter of 2022, 53 hedge funds held stakes in Builders FirstSource, Inc. (NASDAQ:BLDR). The total value of these stakes amounted to $1.38 billion.
Analysts are bullish on Builders FirstSource, Inc. (NASDAQ:BLDR). This August, Stifel analyst Stanley Elliott raised his price target on Builders FirstSource, Inc. (NASDAQ:BLDR) to $92 from $87 and maintained a Buy rating on the shares. On August 17, Deutsche Bank analyst Joseph Ahlersmeyer took coverage of Builders FirstSource, Inc. (NASDAQ:BLDR) with a Buy rating and a $93 price target.
As of October 14, Builders FirstSource, Inc. (NASDAQ:BLDR) has a trailing twelve-month PE ratio of 4.29 and has free cash flows of over $2.82 billion. The company has a trailing twelve-month operating margin of 16.18% and is one of the best profitable and cash-rich mid-cap stocks to buy now.
As of June 30, Coliseum Capital is the largest shareholder in Builders FirstSource, Inc. (NASDAQ:BLDR) and has stakes worth $347.05 million in the company.
Here is what GoodHaven Capital Management had to say about Builders FirstSource, Inc. (NYSE:BLDR) in its second-quarter 2022 investor letter:
“We have had for some time a material exposure to two companies, Lennar Corp and Builders FirstSource, Inc. (NYSE:BLDR), that operate in/around the housing market. Our long-term enthusiasm for their future remains unchanged. On the way up we reminded you that although these had become better businesses (an important part of our thesis), they were still cyclical businesses and that we prepared to own them through a normal housing cycle, versus trying to predict the cycle. In July 2021 we wrote:
“One of these days the red hot housing market will slow—in fact a more normalized pace of demand might be better—as Lennar and its brethren are striving to balance very strong demand with higher raw materials and tight labor markets. While we trimmed our Builders FirstSource position to free up funds for new buys, we remain very constructive on both Builders and Lennar’s long-term prospects. Expect periodic normal demand slowdowns from time to time, though we think slowdowns will be less pronounced than in prior cycles.””
You can also take a look at 11 Best Micro-cap Stocks To Buy and 11 Best VR Stocks To Buy.
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