Mid-cap stocks often fly under the radar of many investors more focused on the stability of large-cap stocks. However, mid-caps offer a unique blend of growth prospects and stability, especially if they’re profitable.
Delving into this investing realm is not for everyone, as identifying the top contenders whose growth will remain consistent can be challenging. These stocks embody the ethos of growth-oriented investing, where astute choices could make or break your investment portfolio.
That is why diversification is key, and you should never invest more than you can afford to lose. However, with the right approach, these asymmetric bets can yield substantial rewards.
Now, let’s unpack the top mid-cap stocks for life-changing gains in 2024!
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) is a leading wafer packaging and semiconductor cleaning company headquartered in Fremont, California. It has seen an acceleration in revenue growth and profitability over the last seven years, and that growth is likely to continue.
ACM Research is not a semiconductor company you will see in the spotlight too often. That is likely because of its ties to China, which many North American investors are on the fence about. However, the increasing demand for chips powering everything from smartphones to artificial intelligence (AI) is a major tailwind for the business.
Additionally, the incoming rebound in the wafer fabrication market paints a beautiful picture for the next several quarters. In FY23, ACM’s revenue swelled 43% year-over-year (YOY) to $557.72 million. Net income skyrocketed 97% YOY to $77.35 million, or $1.16 per share. While you should proceed with caution, management’s guidance of up to 30% revenue growth in FY24 is a positive sign for the future.
Qualys (QLYS)
Qualys (NASDAQ:QLYS) stands at the forefront as a leading provider of cybersecurity solutions. It offers a cloud-based platform that helps organizations remediate vulnerabilities, ensuring the security of its IT infrastructure.
Qualys, while a much smaller player in the cybersecurity sector, is slowly making a name for itself. Its TruRisk platform prioritizes threat vulnerabilities and helps businesses optimize IT security workflows. The platform has more than 10,000 customers, and its vulnerability management, detection and response (VDMR) software is a game-changer.
Qualys delivered strong operational results in the 2023 fiscal year. Revenue increased 13% YOY to $554.5 million. EPS ballooned 47% YOY to $4.03 per share, with FCF surpassing the $200 million mark. The company has demonstrated its ability to consistently drive profitable growth, making it a no-brainer buy for 2024.
Sterling Infrastructure (STRL)
Sterling Infrastructure (NASDAQ:STRL) might just be one of those mid-cap stocks investors look back on and kick themselves for not buying. The business has been on a roll for the last several years, and there are a number of tailwinds to suggest growth will continue.
Sterling Infrastructure primarily focuses on infrastructure solutions, including transportation, e-infrastructure and building projects. Its portfolio is extremely diverse, spanning highways, roads, bridges, airports and even data centers.
The company has a long track record of securing and completing large-scale infrastructure projects, primarily in the United States. In FY23, Sterling’s revenue increased 11% YOY to $1.97 billion. EPS increased 28% YOY to $4.44 per share, with gross margins expanding by 350 basis points to 18.9%.
The company closed out the year with a backlog of over $2 billion, as it continued its streak of new contract awards. With strong top and bottom line growth projected for FY24, STRL stock is one of the best mid-cap stocks worth a shot for life-changing gains in 2024.
— Terel Miles
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Source: Investor Place