Which Mid-Cap Stocks Show Potential for Growth in Q2 2023?
As we enter the second quarter of 2023, investors are seeking opportunities to diversify their portfolios and capitalize on the potential for growth. Mid-cap stocks often serve as a promising middle ground between the stability of large-cap stocks and the growth potential of small-cap stocks. In this article, we will explore which mid-cap stocks show potential for growth in Q2 2023. To make informed investment decisions, we will examine the best value, fastest-growing, and most momentum-driven mid-cap stocks. By analyzing key financial indicators and recent developments, we aim to help investors identify stocks with the potential to outperform the market.
Best Value Mid-Cap Stocks
In the ever-evolving landscape of the stock market, identifying undervalued stocks is a crucial strategy for investors looking to maximize their returns. The following mid-cap stocks stand out as the best value options for Q2 2023.
Southwestern Energy Co. (SWN)
- Price: $5.10
- Market Cap: $5.6 billion
- 12-Month Trailing P/E Ratio: 0.9
Southwestern Energy Co. is an oil and natural gas exploration company with properties located throughout the eastern United States. The company's stock is trading at a remarkably low 12-month trailing P/E ratio of 0.9, indicating that investors are paying less for each dollar of profit generated. This could make SWN an attractive choice for value investors seeking opportunities in the energy sector.
PBF Energy Inc. (PBF)
- Price: $35.49
- Market Cap: $4.5 billion
- 12-Month Trailing P/E Ratio: 1.4
PBF Energy Inc. is a petroleum refining company that supplies various products, including gasoline, diesel, jet fuel, lubricants, and petrochemicals. PBF Energy recently announced a CEO transition, with Mathew C. Lucey taking over as CEO, effective July 1, 2023. The company also announced a quarterly dividend and a significant stock repurchase program, demonstrating their commitment to enhancing shareholder value.
Light & Wonder Inc. (LNW)
- Price: $60.20
- Market Cap: $5.5 billion
- 12-Month Trailing P/E Ratio: 1.6
Light & Wonder Inc. is a cross-platform gaming company that produces gaming machines and digital gaming content for mobile and web platforms. On May 18, 2023, the company announced a proposal to acquire the remaining 17% of its partially owned subsidiary, SciPlay Corp., for $422 million. This strategic move indicates their intent to expand their presence in the gaming industry and could offer growth potential for investors.
Fastest-Growing Mid-Cap Stocks
For investors seeking growth opportunities, identifying companies with a track record of robust revenue and earnings growth is essential. The following mid-cap stocks have exhibited impressive growth in recent quarters, making them worth considering for Q2 2023.
Aspen Technology Inc. (AZPN)
- Price: $167.55
- Market Cap: $10.9 billion
- EPS Growth: N/A
- Revenue Growth: 172%
Aspen Technology Inc. is a software company that provides asset management services for the environmental industry. While it doesn't have an EPS growth figure due to a net loss in the most recent quarter, its remarkable 172% revenue growth is a compelling indicator of its growth potential.
RenaissanceRe Holdings Ltd. (RNR)
- Price: $198.78
- Market Cap: $8.7 billion
- EPS Growth: N/A
- Revenue Growth: 152%
RenaissanceRe Holdings Ltd. is a Bermuda-based insurance product provider specializing in property, specialty, and casualty insurance. The company's revenue surged, driven by substantial investment income and gains, leading to profitability. Despite not having an EPS growth figure, its positive financial performance is noteworthy.
Healthcare Realty Trust Inc. (HR)
- Price: $19.41
- Market Cap: $7.4 billion
- EPS Growth: N/A
- Revenue Growth: 144%
Healthcare Realty Trust Inc. is a real estate investment trust (REIT) that owns and manages healthcare properties. Although the company reported a net loss in the first quarter due to increased interest expenses and real estate property impairment, its strong revenue growth indicates potential for recovery.
Mid-Cap Stocks with the Most Momentum
Investors seeking stocks with strong recent performance can consider mid-cap stocks that have exhibited significant momentum in the past year. The following mid-cap stocks have had the highest total returns over the last 12 months, making them compelling choices for momentum-driven investors in Q2 2023.
Super Micro Computer Inc. (SMCI)
- Price: $145.84
- Market Cap: $7.7 billion
- 12-Month Trailing Total Return: 177%
Super Micro Computer is an information technology company specializing in server, storage, and artificial intelligence (AI) infrastructure software. With a total return of 177% over the last year, SMCI has demonstrated exceptional momentum in its stock price.
Wingstop Inc. (WING)
- Price: $201.03
- Market Cap: $6.0 billion
- 12-Month Trailing Total Return: 154%
Wingstop is a restaurant chain known for its cook-to-order chicken wings. The company's share price has witnessed a sustained rally, surging from a 52-week low of about $70 per share in May 2022 to approximately $200 per share in early May 2023. Strong financial performance, with an 81% increase in net income in the first quarter, has contributed to this momentum.
Celsius Holdings Inc. (CELH)
- Price: $132.26
- Market Cap: $10.2 billion
- 12-Month Trailing Total Return: 141%
Celsius Holdings distributes flavored carbonated energy drinks and liquid supplements. The company's net income soared in the first quarter of 2023, attributed to a recent partnership with PepsiCo, which expanded its distribution and exposure. After an impressive earnings report, CELH's stock price jumped by more than 20%.
In the dynamic world of mid-cap stocks, identifying promising opportunities for growth is a constant challenge. As we look ahead to Q2 2023, investors can consider the best value, fastest-growing, and most momentum-driven mid-cap stocks discussed in this article.
For value-oriented investors, Southwestern Energy Co., PBF Energy Inc., and Light & Wonder Inc. offer attractive options with low P/E ratios and recent strategic moves. These stocks may provide opportunities for capitalizing on undervalued assets and expansion plans.
Investors seeking growth may find Aspen Technology Inc., RenaissanceRe Holdings Ltd., and Healthcare Realty Trust Inc. appealing, with their strong revenue growth, despite some reporting net losses in recent quarters. These companies have demonstrated resilience and potential for recovery.
Lastly, for those driven by momentum, Super Micro Computer Inc., Wingstop Inc., and Celsius Holdings Inc. have exhibited remarkable total returns over the last 12 months. Their impressive stock price performances, backed by
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