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Practical Advice from

7 Marvelous Mid-Cap Stocks to Buy for the Best of All Worlds


Goldilocks had it right: The middle is truly the sweet spot. That holds especially true for investors, as mid-cap stocks offer the best of two worlds.

Mid-caps are typically defined as companies between $2 billion and $10 billion in market capitalization, though certain definitions include bigger market caps.

They feature many of the qualities of small caps, such as the potential for growth; the idea is that it’s a lot easier to double earnings of $10 million than it is to double earnings of $10 billion. However, they have easier access to credit and typically boast more diverse revenue streams — advantages that large-caps often have, but small-cap stocks typically lack.


Most importantly, mid-cap stocks perform.

Mid-caps — as represented by the SPDR S&P MidCap 400 ETF (MDY) — have returned 12.22% annually since the ETF’s inception in the mid-1990s. That beats both the large- and small-cap equivalents to the fund over the same period. Many other experts are quick to point out that mid-cap stocks have the best risk-adjusted returns in the market.

Don’t overlook the middle. Check out this list of seven mid-cap stocks to buy for the best of both worlds — and most importantly, market outperformance.

Prices and data are from the original InvestorPlace story published on February 9, 2017. Click on ticker-symbol links in each slide for current prices and more.

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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