Core Insights - U.S. stock markets are experiencing a significant bull run in 2023, with major indexes near all-time highs [1] - Small-cap and mid-cap benchmarks have shown notable gains, with Russell 2000 up 14.3% and S&P 400 up 7.6% year to date [2] - Mid-cap stocks are seen as a good diversification strategy, combining benefits of both small and large-cap stocks [2][3] Mid-Cap Stocks Overview - Top-ranked mid-cap stocks have high potential for profitability and market share growth, with less exposure to international risks compared to large caps [3] - In a thriving economy, mid-cap stocks are expected to outperform small caps due to established management and access to capital [4] Recommended Mid-Cap Stocks - Five mid-cap stocks with favorable Zacks Ranks for 2026 are FirstCash Holdings Inc. (FCFS), Lyft Inc. (LYFT), Installed Building Products Inc. (IBP), Lumen Technologies Inc. (LUMN), and Advanced Energy Industries Inc. (AEIS) [5][9] - Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [5] Company-Specific Insights FirstCash Holdings Inc. (FCFS) - Operates pawn stores and payment solutions in the U.S. and Latin America, with expected revenue and earnings growth rates of 5.7% and 21.8% respectively for next year [8][10] Lyft Inc. (LYFT) - Engages in ridesharing in the U.S. and Canada, with expected revenue and earnings growth rates of 14.6% and 25.9% respectively for next year [11][13] - Aims to enter the robotaxi market through partnerships, avoiding high R&D costs [12] Installed Building Products Inc. (IBP) - Operates as a residential insulation installer, with expected revenue and earnings growth rates of 1.1% and 0.1% respectively for next year [14][15] Lumen Technologies Inc. (LUMN) - Focused on AI opportunities, with $10 billion in Private Connectivity Fabric deals and plans to eliminate $1 billion in costs [16][17] - Expected revenue and earnings growth rates of -5.2% and -71.9% respectively for next year [18] Advanced Energy Industries Inc. (AEIS) - Benefits from semiconductor and data center demand, with expected revenue growth of approximately 20% and earnings growth of 20.2% for next year [19][20][21]
Buy 5 High-Flying Mid-Cap Stocks of 2025 to Tap More Gains in 2026