Buy 5 Mid-Cap Tech Stocks to Tap Lucrative Short-Term Upside Potential

Market Overview - U.S. stock markets have experienced a significant bull run in 2023, with the Dow, S&P 500, and Nasdaq Composite increasing by 9.1%, 12.5%, and 15.5% respectively, while the S&P 400 index is up 2.2% year to date [1] Mid-Cap Stocks - Investment in mid-cap stocks is recognized as a strong portfolio diversification strategy, combining attributes of both small and large-cap stocks, with high potential for profitability and market share growth [2] - Mid-cap stocks are less susceptible to losses compared to large-cap stocks during economic slowdowns due to lower international exposure, and they can outperform small caps in a thriving economy due to established management and access to capital [3] Recommended Mid-Cap Technology Stocks - Five mid-cap technology stocks with favorable Zacks Rank and short-term price upside potential are Lyft Inc. (LYFT), GitLab Inc. (GTLB), EPAM Systems Inc. (EPAM), Onto Innovation Inc. (ONTO), and Semtech Corp. (SMTC), all carrying a Zacks Rank 2 (Buy) [4][8] Lyft Inc. (LYFT) - Lyft operates a ridesharing marketplace in the U.S. and Canada, benefiting from strong rider and driver growth, and aims to enter the robotaxi market through strategic partnerships [5][6] - Expected revenue and earnings growth rates for LYFT are 14.6% and 25.9% respectively for next year, with a short-term average price target indicating an 18.6% increase from the last closing price of $19.78, suggesting a maximum upside of 61.8% [9] GitLab Inc. (GTLB) - GitLab offers a DevOps platform that enhances software development efficiency, with strong enterprise demand for its AI-native solutions driving growth [10][11] - Expected revenue and earnings growth rates for GTLB are 19.7% and 16.7% respectively for next year, with a short-term average price target suggesting a 38.8% increase from the last closing price of $41.49, indicating a maximum upside of 73.5% [12] EPAM Systems Inc. (EPAM) - EPAM is benefiting from digital transformation trends and strategic acquisitions, with a focus on Gen AI capabilities expected to boost growth [13][14] - Expected revenue and earnings growth rates for EPAM are 6.9% and 9.9% respectively for next year, with a short-term average price target indicating a 15.7% increase from the last closing price of $180.98, suggesting a maximum upside of 40.9% [15] Onto Innovation Inc. (ONTO) - Onto Innovation is leveraging its diversified portfolio and AI-driven advanced packaging, with strong sales growth expected in the fourth quarter [16][17] - Expected revenue and earnings growth rates for ONTO are 14.8% and 19.9% respectively for next year, with a short-term average price target suggesting a 23.4% increase from the last closing price of $127.18, indicating a maximum upside of 41.5% [18] Semtech Corp. (SMTC) - Semtech is experiencing strong demand in industrial and datacenter markets, particularly for its connectivity solutions [19][20] - Expected revenue and earnings growth rates for SMTC are 10.1% and 24.5% respectively for next year, with a short-term average price target indicating a 15.3% increase from the last closing price of $63.85, suggesting a maximum upside of 41% [21]