5 Mid-Cap Stocks to Buy on Solid Long-Term Earnings Growth Potential

Core Insights - Stocks with positive earnings estimate revisions are attractive to investors, especially when combined with a top Zacks Rank for potential strong stock price appreciation in the near future [1][4] - Companies with a strong long-term earnings growth rate (3 to 5 years) are expected to provide steady returns, suggesting systematic investment in these stocks for long-term wealth creation [2] Recommended Stocks - Five mid-cap stocks with favorable Zacks Rank are recommended: UiPath Inc. (PATH), Lyft Inc. (LYFT), Shake Shack Inc. (SHAK), Wingstop Inc. (WING), and Dycom Industries Inc. (DY) [3][8] - Each of these stocks has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and exceeds the S&P 500's long-term EPS growth rate of 12.6% [3][8] Mid-Cap Stocks Advantages - Investment in mid-cap stocks is recognized as a good portfolio diversification strategy, combining attributes of both small and large-cap stocks [5] - Mid-cap stocks are less susceptible to losses during economic slowdowns due to lower international exposure and can outperform small caps in a thriving economy due to established management and market access [6] Company-Specific Insights UiPath Inc. (PATH) - Provides an end-to-end automation platform with a long-term EPS growth rate of 18.4%, significantly above the S&P 500's rate [10][12] - Expected revenue and earnings growth rates for the current year are 8.5% and 5.7%, respectively, with a 7.7% improvement in earnings estimates over the last 30 days [12] Lyft Inc. (LYFT) - Operates a ridesharing marketplace with expected revenue and earnings growth rates of 12.7% and 16.8%, respectively, and a long-term EPS growth rate of 20.7% [13][15] - Anticipates mid-teens year-over-year rides growth for Q2 2025, supported by improved driver supply and service levels [14] Shake Shack Inc. (SHAK) - Owns and operates restaurants with expected revenue and earnings growth rates of 15.6% and 45.7%, respectively, and a long-term EPS growth rate of 31.6% [16][19] - Plans to open 45 to 50 company-operated Shacks this year, benefiting from robust same-shack sales and digital initiatives [17][18] Wingstop Inc. (WING) - Franchises and operates restaurants with expected revenue and earnings growth rates of 16.8% and 6.6%, respectively, and a long-term EPS growth rate of 18.4% [20][21] Dycom Industries Inc. (DY) - A specialty contracting firm in the telecom industry with expected revenue and earnings growth rates of 13.7% and 12.7%, respectively, and a long-term EPS growth rate of 18.4% [22][24] - Benefits from fiber-to-the-home programs and raised revenue outlook for fiscal 2026 due to favorable demand [23]