MGM Resorts International (MGM) is a multinational hospitality, sports and entertainment company. Headquartered in Las Vegas, Nevada, the company owns and operates a portfolio of resorts, casinos, hotels and entertainment venues both in the U.S. and internationally. Its market cap hovers around $9.5 billion. Companies with a valuation between $2 billion and $10 billion are typically labeled “mid-cap stocks.” MGM Resorts International fits into this category, underscoring its significant presence and influ ...

Bio-Techne Corporation (TECH), headquartered in Minneapolis, Minnesota, develops, manufactures, and sells life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets. Valued at $8.3 billion by market cap, the company specializes in proteins, cytokines, growth factors, immunoassays and small molecules. Companies worth $2 billion or more are generally described as “mid-cap stocks,” and TECH perfectly fits that description, with its market cap exceeding this mark ...

With a market cap of $9.4 billion, The Interpublic Group of Companies, Inc. (IPG) is a leading global advertising and marketing services firm headquartered in New York City. Established in 1930 as McCann-Erickson and rebranded as IPG in 1961, the company has grown to employ approximately 51,000 people across over 100 countries. Companies worth between $2 billion and $10 billion are generally described as “mid-cap stocks,” and IPG perfectly fits that description. IPG’s market leadership stems from strong g ...

Core Insights - Molina Healthcare, Inc. is a significant player in the managed healthcare services sector, focusing on low-income families and individuals through Medicaid and Medicare programs, with a market cap of $9.6 billion [1][2] Financial Performance - Molina's stock has experienced a significant decline, dropping 50.1% from its 52-week high of $359.97 on April 4, and 39.2% over the past three months, underperforming the Nasdaq Composite's 15% increase during the same period [3] - Year-to-date, Molina's stock is down 38.3%, and it has decreased 49.4% over the past 52 weeks, contrasting with the Nasdaq's 16.4% rise in 2025 and 27.9% increase over the past year [4] - Following the release of mixed Q2 results on July 23, Molina's stock plummeted 16.8%, despite premium collections rising 15.1% year-over-year, leading to a topline of $11.4 billion, which was up 15.7% year-over-year and 5.4% above expectations [5] - The company's adjusted EPS fell by 6.5% to $5.48, missing consensus estimates due to rising medical costs, prompting a reduction in the full-year outlook [6] Competitive Position - Compared to its peer Centene Corporation, Molina has fared better, with Centene experiencing a 46.9% decline in 2025 and a 57.9% drop over the past 52 weeks [6]

Core Insights - The article emphasizes the author's long-standing preference for mid-cap stocks, highlighting their potential for growth even during market downturns [1] - The author, identified as a quantitative analyst, relies heavily on mathematical analysis for investment decisions, expressing skepticism towards sell-side analysis [1] Group 1 - The author has been involved in investing since 2003 and has a background in mathematics, which he believes is fundamental to investment success [1] - The focus is on value stocks with growth potential, encompassing a range of asset classes including mid-caps, small caps, international stocks, gold miners, and REITs [1] - The author utilizes hedging strategies but prefers ETFs that align with those needs [1]

Midcap Investment Opportunity - Midcaps offer a blend of discovery value similar to small caps and financial quality/liquidity akin to large caps, making them fertile ground for active management [2] - Investors are typically underallocated in the midcap space [3] - Alger favors companies with strong balance sheets and cash flow generating capabilities to fund their own growth [4] RBC Bearings (RBC) Analysis - Alger invested in RBC Bearings (RBC) since 2020, viewing it as an exceptional company with the potential to become a large company [5] - RBC is a market leader in highly engineered precision bearings for commercial aerospace, defense, and industrial markets [5] - RBC's bearings are mission-critical, highly regulated, and essential for manufacturing operations, reducing wear and tear, energy loss, and facilitating power transmission [6] - The majority of RBC's products are sole-sourced, providing a strong competitive moat [6] - RBC has idiosyncratic drivers and pricing power, making it resilient to inflation and recession concerns [6] - Commercial aerospace is RBC's fastest-growing segment, expected to benefit from a multi-year cyclical recovery [6] - The commercial aerospace industry experienced a steep downturn in 2020 and 2021 due to COVID travel restrictions and the grounding of Boeing 737 Max, but these issues are now resolved [7] Tariff Policy and Competitive Advantage - Focus on companies like RBC Bearings that can control their own destiny due to differentiated products and pricing power [8] - Companies with differentiated products can pass tariff costs to customers because their products are mission-critical [8] - Alger focuses on companies with strong competitive advantages and pricing power [8]

Market Overview - Wall Street has experienced significant volatility in 2025, with all three major stock indexes (Dow, S&P 500, Nasdaq Composite) in negative territory year to date [1] - Small-cap benchmarks (Russell 2000, S&P 600) and mid-cap-specific S&P 400 Index are also in the red year to date [1] High-Performing Mid-Cap Stocks - Despite market headwinds, five mid-cap stocks have provided over 25% returns year to date: ADMA Biologics Inc. (ADMA), FirstCash Holdings Inc. (FCFS), Stride Inc. (LRN), Life Time Group Holdings Inc. (LTH), and National Fuel Gas Co. (NFG) [2] - These stocks exhibit strong revenue and earnings growth potential for 2025, with positive earnings estimate revisions over the last 60 days [3] ADMA Biologics Inc. - ADMA Biologics specializes in plasma-based biologics for treating and preventing infectious diseases, targeting immune-compromised individuals [7][8] - Expected revenue growth rate is 16.3% and earnings growth rate is 44.9% for the current year, with a 2.9% improvement in earnings estimates over the last 60 days [9] FirstCash Holdings Inc. - FirstCash operates retail pawn stores across the U.S., Mexico, and Latin America, providing loans against personal property and retailing forfeited merchandise [10][11] - Expected revenue growth rate is 0.2% and earnings growth rate is 17.2% for the current year, with a 2.6% improvement in earnings estimates over the last seven days [13] Stride Inc. - Stride is a technology-based education service company offering online curriculum and educational services [14] - Expected revenue growth rate is 14.9% and earnings growth rate is 48.4% for the current year, with a 4.3% improvement in earnings estimates over the last 30 days [16] Life Time Group Holdings Inc. - Life Time provides health, fitness, and wellness experiences, operating various fitness and recreation centers [17][18] - Expected revenue growth rate is 12.9% and earnings growth rate is 37.9% for the current year, with a 6.5% improvement in earnings estimates over the last 60 days [19] National Fuel Gas Co. - National Fuel Gas focuses on systematic investments to strengthen operations and reduce emissions, with significant capital investments planned [20][21] - Expected revenue growth rate is 31.5% and earnings growth rate is 39.1% for the current year, with a 1.9% improvement in earnings estimates over the last 60 days [22][23]