We recently published a list of 10 Best Mid-Cap Growth Stocks to Buy According to Analysts. In this article, we are going to take a look at where SiTime Corporation (NASDAQ:SITM) stands against other best mid-cap growth stocks to buy according to analysts.
Investing in mid-cap growth stocks has long been a favoured strategy for investors looking to strike a balance between the stability of large-cap companies and the high-growth potential of smaller firms. Mid-cap companies, typically defined as those with market capitalizations between $2 billion and $10 billion, occupy that unique space in the market. They are less risky than small-caps, established enough to have proven business models and good access to capital markets, and to top it all, still have ample room for expansion. This combination allows them to swiftly adapt to market changes and capitalize on emerging opportunities.
Many large asset managers have recognized the advantages of mid-cap growth stocks and developed strategies to maximize returns in this segment. Macquarie Asset Management’s equities team highlights that historically, U.S. mid-cap companies have outperformed the broader U.S. market, with mid-cap growth firms delivering even stronger returns compared to a diversified mid-cap universe. Their investment approach focuses on gaining exposure to high-quality mid-cap companies, as they believe these firms not only outperform their lower-quality counterparts but also exhibit greater resilience during market downturns.
Similarly, J.P. Morgan’s Mid-Cap Growth Strategy emphasizes investing in a diversified portfolio of mid-cap companies with above-average growth prospects. The firm prioritizes businesses with leading competitive positions, durable business models, and strong management teams capable of sustaining long-term growth. Their approach reflects the broader market consensus that mid-cap stocks offer an attractive risk-reward profile for investors willing to take a strategic, selective approach.
The strength of mid-cap growth stocks as an investment theme was further reinforced in an October 2024 interview with CNBC, where Eduardo Lecubarri, Managing Director and Global Head of Small and Mid-Cap Equity Strategy at J.P. Morgan, provided insightful commentary on the market environment. He acknowledged the complexity of today’s investment landscape, noting that broader market opportunities remain unclear. However, he emphasized the potential within small- and mid-cap stocks, describing the current moment as a “generational opportunity.” Mr. Lecubarri explained:
“Especially if you are able to buy small-and-mid-cap (SMID) stocks versus large caps, I think the opportunity there is bigger than anything I have ever seen in the last thirty years. It is a generational opportunity, for a lot of reasons. In 2022-23, my recommendation was to stay away from SMID for many reasons (mostly macroeconomic). In November 2023, I changed my view and went overweight. The underperformance was large, valuation is attractive, fundamentals are improving. The story has got a lot more enticing.”
This perspective aligns with the broader sentiment among market experts who see mid-cap stocks as a compelling investment avenue in the medium term. With that in mind, we have curated a list of the 10 best mid-cap growth stocks to buy according to analysts.
Our Methodology
To determine the 10 best mid-cap growth stocks to buy, we conducted a comprehensive screening of U.S.-listed companies operating in growth-oriented industries with a market capitalization between $2 billion and $10 billion. Our selection criteria focused on identifying stocks that have demonstrated strong revenue expansion with sales growth exceeding 20% over the past five years and expected to see continued quarter-over-quarter growth. Additionally, we incorporated a potential upside criterion of over 20%, ensuring that the shortlisted stocks present significant appreciation potential. For the top 10 stocks shortlisted with these criteria, we ranked them in ascending order of potential upside, with those having the highest upside placed at the top of the list. We also added the number of hedge funds which have stakes in these companies, as of Q3 2024.
Note: All pricing data is as of market close on February 11.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A series of industrial production lines, radiating silicon timing solutions to the world.
SiTime Corporation (NASDAQ:SITM)
Upside Potential: 36%
Number of hedge funds: 18
SiTime Corporation (NASDAQ:SITM) is a fabless semiconductor company that delivers precision timing solutions to the global electronics industry. Utilizing micro-electro-mechanical systems (MEMS) technology, SiTime’s products ensure reliable and accurate timing for electronic devices. They are distinguished by their high performance, resilience, reliability, programmability, compact size, and low power consumption. These products are integrated into more than 300 applications across diverse markets, including communications, data centers, automotive, industrial, aerospace, mobile, IoT, and consumer sectors. SiTime Corp. (NASDAQ:SITM) holds a commanding 90% market share in the MEMS timing devices market. The company’s innovative MEMS-based oscillators are gradually replacing traditional quartz oscillators, presenting significant market expansion opportunities.
On February 5, 2025, the company announced impressive Q4 2024 results. Net revenue surged by 61% year-over-year (YoY) or 18% sequentially (compared to the previous quarter) to just over $68 million. The company reported over 30% growth across all customer segments, with significant gains in the Communications, Enterprise, and Datacenter businesses, thanks to the crucial role of precision timing in AI. Additionally, the management projected a 64% YoY revenue growth for Q1, indicating a strong start to 2025. They also highlighted that the company ended the quarter with strong bookings for 2025, underscoring a positive outlook for the year. The results were well received by the market, leading to widespread upward earnings revisions. Barclays, Needham, Raymond James, and Stifel all raised their price targets in response.
Overall, SITM ranks 7th on our list of best mid-cap growth stocks to buy according to analysts. While we acknowledge the potential of SITM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SITM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.