In this article, we will list the Top 5 Mid Cap Stocks to Own for Decades According to Hedge Funds. Please visit Top 10 Mid Cap Stocks to Own for Decades According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Market Capitalization: $9.95 Billion
Stock Upside Potential: 36.94%
Number of Hedge Fund Holders: 45
Domino’s Pizza Inc. (NASDAQ:DPZ) is one of the top mid-cap stocks to own for decades, according to hedge funds. On June 23, BTIG analyst Peter Saleh reiterated a Buy rating on Domino’s Pizza Inc. (NASDAQ: DPZ) but lowered the price target to $425 from $450. Despite the cut the new price target represents significant upside as the stock is trading at about $304 a share.
The price target cut is in response to the company’s announcement of the imminent retirement of chief executive officer Russell Wiener. He steps down after significant success during the four years at the helm, including turning around the company’s US business. Weiner is to take over as the executive Chairman on October 1.
Domino’s Pizza has already named Chief Operating Officer Joe Jordan as Russell’s successor. Jordan was selected because of his extensive experience with the company, which will be crucial in the uncertain economic environment characterized by tight consumer spending.
Domino’s Pizza, Inc. (NASDAQ:DPZ) operates as a multinational restaurant chain and franchise company. It primarily makes, sells, and delivers pizzas, pasta, wings, and side dishes. The company functions as both a franchisor (licensing the brand to independent owners) and an operator, while running central supply chain facilities that distribute ingredients to its stores.
4. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Market Capitalization: $9.95 Billion
Stock Upside Potential: 88.73%
Number of Hedge Fund Holders: 46
Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is one of the top mid-cap stocks to own for decades, according to hedge funds. On July 1, Wedbush initiated coverage of Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) with an Outperform rating and an $85 price target.
The positive stance underscores the research firm’s confidence in the company’s prospects as a merchant arms supplier to the US defense complex. The company sells critical subsystems, engines, hypersonic vehicles and ground software to prime and new entrant players. While the market views Kratos as a drone company jostling for platform dominance, management has built a robust business across hypersonic missile defense space and microelectronics.
Kratos Defense & Security Solutions’ edge also stems from its decision to sell its solutions and products to every player in the defense sector rather than act as a prime contractor. The strategy is paying off as revenue has grown by 22% over the past 12 months.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is an American technology company that develops and manufactures transformative, affordable systems for the U.S. Department of Defense, allied nations, and commercial enterprises. They specialize in hardware-software convergence, focusing on rapid development rather than traditional, lengthy military procurement cycles.
3. IAMGOLD Corporation (NYSE:IAG)
Market Capitalization: $9.13 Billion
Stock Upside Potential: 65.31%
Number of Hedge Fund Holders: 46
IAMGOLD Corporation (NYSE:IAG) is one of the top mid-cap stocks to own for decades, according to hedge funds. On June 18, IAMGOLD Corporation (NYSE:IAG) amended its secured revolving credit facility. It increased its total available commitments to $850 million from $650 million. It also extended the maturity date of the credit facility to June 17, 2030, from December 20, 2028.
The amended credit facility comes with an accordion feature of up to $250 million that allows IAMGOLD to further increase available liquidity, subject to lender approval. The much bigger credit facility will strengthen the company’s financial position while also lowering its cost of capital. In addition, it should provide meaningful flexibility as the mining giant advances its operating portfolio and pursues internal growth opportunities.
The strengthening of the financial position comes on the heels of IAMGOLD Corporation announcing 12% increase in mineral resources at its Côté Gold Mine in Ontario, Canada. The updated mineral resource now shows 20.3 million ounces of gold in measured and indicated categories.
IAMGOLD Corporation (NYSE:IAG) is a Canadian-based intermediate gold producer and developer with active mining operations and exploration projects across North America and West Africa. The company’s core activities focus on the exploration, development, and mining of gold.
2. Celsius Holdings Inc. (NASDAQ:CELH)
Market Capitalization: $8.15 Billion
Stock Upside Potential: 90.19%
Number of Hedge Fund Holders: 52
Celsius Holdings Inc. (NASDAQ:CELH) is one of the top mid-cap stocks to own for decades, according to hedge funds. On June 30, UBS reiterated a Buy rating on Celsius Holdings (NASDAQ:CELH) but lowered the price target to $50 from $55. Despite the cut, the new price target represents significant upside potential as the stock is trading at about $31 a share.
The price target cut comes on the research firm analyzing Core Celsius and Alani Nu brand trends through May and June. Its findings indicate that Traditional Fruit flavors were the only growing product line in the core Celsius portfolio. In contrast, Essentials continued to decline. In addition, Vibe products also slowed, with SKUs dropping by 17% in the four-week period ending June 13, compared to a 12% decline in May.
Meanwhile, the top 10 SKUs continue to offset the slowdown, with 6.2% growth over the last four weeks and 9% over the last 13 weeks. Additionally, Celsius Holdings is also progressing on SKU rationalization as it gains incremental shelf space.
Celsius Holdings Inc. (NASDAQ:CELH) is a global beverage company that develops, markets, and distributes functional, zero-sugar energy drinks. Positioned as a healthier alternative in the soft drink market, their products are formulated with clean-label ingredients, including green tea, guarana, ginger, and seven essential vitamins.
1. Chewy Inc. (NYSE:CHWY)
Market Capitalization: $8.43 Billion
Stock Upside Potential: 65.96%
Number of Hedge Fund Holders: 53
Chewy Inc. (NYSE:CHWY) is one of the top mid-cap stocks to own for decades, according to hedge funds. On June 30, BofA Securities reiterated a Buy rating on Chewy Inc. (NYSE:CHWY) and a $31 price target. Earlier on June 23, TD Cowen touted Chewy as the best mid cap idea for 2026 while reiterating a Buy rating and a $34 price target. The price target represent significant upside potential as the stock is trading at about $20 a share
The bullish stance comes on the heels of the company delivering solid first-quarter 2026 results, characterized by revenue and earnings growth, on June 10. The company continued to outperform the pet category while expanding profitability and free cash flow in the first quarter.
Net sales in the quarter were up 7.7% year over year to $3.36 billion, affirming strength in execution. Adjusted net income was up by $31 million to $179.9 million as adjusted diluted earnings per share increased by $0.08 to $0.43 a share.
Chewy Inc. achieved record profitability in the first quarter on the back of 200,000 net customer additions. According to Sumit Singh, Chief Executive Officer, the company is well positioned to gain market share and deliver profitable growth throughout the year. The focus is also on creating long term shareholder value.
Chewy Inc. (NYSE:CHWY) operates as a major e-commerce retailer that sells pet food, supplies, and healthcare products, primarily in the United States. The company combines the personalized service of a local pet store with the convenience of fast home delivery.
While we acknowledge the potential of CHWY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CHWY and that has 100x upside potential, check out our report about the cheapest AI stock.
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