Investing in mid-cap stocks can be an excellent strategy for those looking to diversify their portfolio and potentially achieve higher returns. While large-cap companies often receive the most attention, mid-cap companies have the potential for substantial growth without being as volatile as small-cap stocks.
In this article, we will explore what mid-cap stocks are and highlight five great mid-cap companies and funds worth considering for investment.
What are Mid-Cap Stocks?
Mid-cap stocks are medium-sized companies with a market capitalization ranging from $2 billion to $10 billion. These businesses have already established themselves but still have room for growth.
Known for their balance between stability and potential, mid-caps operate in niche markets or emerging industries, allowing them to capitalize on new opportunities and drive innovation.
Investing in mid-cap stocks provides exposure to sectors not fully tapped into by larger corporations, offering the chance to benefit from their promising growth potential. With reduced volatility compared to smaller counterparts, mid-caps present an appealing option for diversifying investment portfolios effectively.
Five Promising Mid-Cap Stocks and Funds to Consider
When it comes to investing in mid-cap stocks, thorough research and careful selection are key. Here are three exceptional options:
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Ambarella (AMBA – 1.44%): A leading semiconductor company specializing in high-definition video compression and image processing solutions. With cutting-edge technologies used in surveillance, automotive, virtual reality, and drones, Ambarella is well-positioned for growth.
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Clover Health Investments (CLOV – 13.64%): This healthcare company focuses on providing Medicare Advantage plans to seniors in the US. Using data analytics and technology for better patient outcomes and cost reduction, Clover Health has a vast market opportunity.
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Stitch Fix (SFIX – 1.44%): Disrupting retail with personalized styling services, Stitch Fix combines AI and human expertise to deliver curated clothing items directly to customers’ doors.
Stay tuned for Part 2 where we will discuss two more exciting mid-cap companies worth considering.
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