In this article, we discuss the top 5 mid-cap stocks to buy. If you want to read our detailed analysis of the mid-cap stocks, go directly to read the Top Investors’ Stock Portfolio: 10 Mid-Cap Stocks To Buy.
5. Change Healthcare Inc. (NASDAQ:CHNG)
Number of Hegde Fund Holders: 51
Market Cap: $6.6 billion
Change Healthcare Inc. (NASDAQ:CHNG) is an American healthcare company that provides solutions in healthcare technology, revenue cycle management, and health information exchange. The company stands fifth on our list of the top mid-cap stocks to buy.
In August, Piper Sandler lifted its price target on Change Healthcare Inc. (NASDAQ:CHNG) to $25.75, while maintaining an ‘Overweight’ rating on the shares. The firm noted the company’s growth across all segments and recommends the stock in the healthcare IT space.
In Q2 2021, Change Healthcare Inc. (NASDAQ:CHNG) reported revenue of $867.9 million, showcasing a 25% year-over-year growth and beating the analysts’ estimates by $10.33 million.
As of Q2 2021, 51 hedge funds tracked by Insider Monkey have positions in Change Healthcare Inc. (NASDAQ:CHNG), valued at $1.83 billion. The number of hedge funds having stakes in the company stood at 56 in the previous quarter. Abrams Capital Management is the company’s leading shareholder, with over 13.9 million shares.
4. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Number of Hedge Fund Holders: 52
Market Cap: $7.07 billion
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is the leading provider of modular space and storage solutions. The company sells, manufactures, and transports steel mobile storage containers. It ranks fourth on our list of the top mid-cap stocks to buy.
This August, Baird lifted its price target on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) to $37, while keeping an ‘Outperform’ rating on the shares. The firm’s analyst showed confidence in the company’s execution and good asset economics. In Q2 2021, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) reported revenue of $461.1 million, showcasing a 79.5% year-over-year growth.
As of Q2 2021, 52 hedge funds tracked by Insider Monkey have positions in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), up from 47 in the previous quarter. The total worth of these stakes is over $1.39 billion.
3. Anaplan, Inc. (NYSE:PLAN)
Number of Hedge Fund Holders: 52
Market Cap: $8.72 billion
Anaplan, Inc. (NYSE:PLAN) stands third on our list of the top mid-cap stocks to buy. It is an American technology company that sells subscriptions for cloud-based software used across all lines of business and business activities.
In September, Barclays lifted its price target on Anaplan, Inc. (NYSE:PLAN) to $84, while maintaining an ‘Overweight’ rating on the shares. The firm’s analyst Raimo Lenschow expects the company to benefit from the growing software businesses, as it marked its fifth consecutive quarter of improving billings growth. In Q2 2021, Anaplan, Inc. (NYSE:PLAN) posted an EPS of -$0.09, beating the estimates by $0.04. The company’s subscription revenue presented a 34.6% growth from the prior-year quarter.
As of Q2 2021, 52 hedge funds tracked by Insider Monkey have positions in Anaplan, Inc. (NYSE:PLAN), compared with 55 in the previous quarter. These stakes are valued at $2.1 billion. Daniel Och’s OZ Management is the company’s leading shareholder with over 4 million shares.
Alger mentioned Anaplan, Inc. (NYSE:PLAN) in its Q1 2021 investor letter. Here is what the firm has to say:
“Anaplan, Inc. was among the top detractors from performance. Anaplan is a leading provider of cloud-based business planning software. Anaplan’s software platform aims to solve the most complex planning needs of large global enterprises across various business lines. Unlike traditional business planning software, which is often rigid, siloed and opaque, Anaplan’s platform is designed to enable broader enterprise participation and better workforce collaboration during the business planning process. Through better planning, large enterprises can more effectively allocate resources to cut costs and generate revenue. Today Anaplan has over 1,600 customers across a variety of end markets and business use cases.
Anaplan shares underperformed in the first quarter as part of a broader sector rotation as high-growth software stocks fell out of favor relative to more cyclically exposed investment opportunities. We believe Anaplan’s focus on growth over near-term profit generation negatively impacts the company’s stock in a rising interest rate environment.
Fundamentally, Anaplan had strong fourth quarter earnings result, with the company seeing an acceleration of billings growth and a strong demand pipeline as companies realize the need for a more flexible digital planning solution.”
2. Mirati Therapeutics, Inc. (NASDAQ:MRTX)
Number of Hedge Fund Holders: 55
Market Cap: $8.9 billion
Mirati Therapeutics, Inc. (NASDAQ:MRTX) is a clinical-stage biotech company that discovers and delivers breakthrough therapies to treat patients with serious conditions, such as cancer. The company stands second on our list of the top mid-cap stocks to buy.
Recently, Mirati Therapeutics, Inc. (NASDAQ:MRTX) reported a positive result from its phase two study of evaluating adagrasib in patients with advanced lung cancer. The company plans to submit the detailed result in early 2022. In September, Stifel initiated its coverage on Mirati Therapeutics, Inc. (NASDAQ:MRTX) with a ‘Buy’ rating and a $202 price target, highlighting the company’s successful recent adagrasib data. At the end of Q2 2021, Mirati Therapeutics, Inc. (NASDAQ:MRTX) reported cash and cash equivalents of $1.2 billion.
Of the 873 hedge funds tracked by Insider Monkey, 55 hedge funds have positions in Mirati Therapeutics, Inc. (NASDAQ:MRTX) in Q2 2021, compared with 57 in the previous quarter. The total value of these stakes is $2.79 billion.
1. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 63
Market Cap: $9.45 billion
Lithia Motors, Inc. (NYSE:LAD) tops our list of the top mid-cap stocks to buy. It is an American automotive retailer and one of the most fastest-growing companies in the Fortune 500, owning 265 stores in 24 states.
In Q2 2021, Lithia Motors, Inc. (NYSE:LAD) reported a 130% growth in new vehicle retail sales, while the used vehicle retail sales increased by over 95%. The company posted an EPS of $11.12, beating the estimates by $4.95. This July, Craig-Hallum lifted its price target on Lithia Motors, Inc. (NYSE:LAD) to $520, while keeping a ‘Buy’ rating on the shares. In the past year, Lithia Motors, Inc. (NYSE:LAD) delivered a 9.4% return to shareholders.
As of Q2 2021, 63 hedge funds tracked by Insider Monkey have positions in Lithia Motors, Inc. (NYSE:LAD), up from 40 in the previous quarter. The total value of these stakes is $2.9 billion.
You can also take a look at 10 Dividend Stocks for the Small-Cap Investor and 10 best small-cap stocks to buy now
