Top Mid-Cap Stocks for Q2 2023

Top mid-capitalization stocks for the second quarter of 2023 include Super Micro Computer Inc. (SMCI), Wingstop Inc. (WING), and Celsius Holdings Inc. (CELH). The share prices of all three have more than doubled in the past year.

Mid-cap stocks, as represented by the S&P MidCap 400 Index, were up by 1% in the past 12 months compared with a 7% gain for the Russell 1000. Mid-cap stocks are commonly defined as those with a market value between $2 billion and $10 billion.

Here are the top three mid-cap stocks with the best value, the fastest growth, and the most momentum, respectively. All numbers below are as of May 16.

Best Value Mid-Cap Stocks

These are the mid-cap stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Source: YCharts

• Southwestern Energy Co.: An oil and natural gas exploration company with properties located throughout the eastern U.S.
• PBF Energy Inc.: A petroleum refining company that supplies products such as gasoline, diesel, jet fuel, lubricants, and petrochemicals. On May 4, the company announced a CEO transition; the current CEO, Tom Nimbley, will become the executive chairman of the board of directors. And Mathew C. Lucey, the president, will take over the role of CEO, effective July 1. PBF Energy also announced a quarterly dividend of 20 cents a share, payable on May 31, and said it had repurchased almost 9 million shares of its common stock so far this year.
• Light & Wonder Inc.: This is a cross-platform gaming company. It produces gaming machines and digital gaming content for mobile and web platforms. On May 18, The company announced a proposal to acquire the remaining 17% of its partially owned subsidiary SciPlay Corp. (SCPL) for $422 million.

Fastest-Growing Mid-Cap Stocks

These are the top mid-cap stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-on year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.

Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.

Source: YCharts

• Aspen Technology Inc.: A software company that provides asset management services for the environmental industry. Note Aspen Technology doesn't have an EPS growth figure in the table above because the company reported a net loss per share in the most recent quarter.
• RenaissanceRe Holdings Ltd.: This is a Bermuda-based insurance product provider that specializes in property, specialty, and casualty insurance. RenaissanceRe recorded more than $500 million in investment income and investment gains in the most recent quarter, compared with a net loss of almost $600 million in the same quarter last year. That helped to nearly triple revenue and swing the company to profitability, with net income totaling $564 million. Note RenaissanceRe Holdings doesn't have an EPS growth figure in the table above because the company reported a $394 million net loss in the year-ago quarter.
• Healthcare Realty Trust Inc.: A REIT that owns and manages healthcare properties. On May 9, the company reported a first-quarter net loss of $88 million, swinging from a $42 million profit a year ago. The net loss was due to increased interest expenses and impairment of real estate properties, according to the company. Note Healthcare Realty Trust doesn't have an EPS growth figure in the table above because the company reported a net loss per share in the most recent quarter.

Mid-Cap Stocks with the Most Momentum

These are the mid-cap stocks that had the highest total return over the last 12 months.

Source: YCharts

• Super Micro Computer: An information technology company that develops server, storage, and artificial intelligence (AI) infrastructure software.
• Wingstop: Wingstop has franchise-owned restaurants that serve cook-to-order chicken wings and other related products. The company's share price has posted a sustained rally, rising to approximately $200 a share in early May 2023 from a 52-week low of about $70 per share in May 2022. On May 3, Wingstop reported first-quarter net income rose 81% from a year ago. The company opened 37 net new restaurants in the quarter and grew revenue by 43%.
• Celsius Holdings: Celsius Holdings distributes and sells flavored carbonated energy drinks and other liquid supplements under the Celsius, Celsius Heat, and Celsius On-The-Go brands. Celsius Holding's net income soared sixfold and total revenue nearly doubled in the first quarter of 2023 compared with the year before. The major increase in total sales primarily was attributed to a recent PepsiCo partnership, which has allowed Celsius to integrate into the PepsiCo distribution system and gain more exposure. After the earnings report, Celsius' stock price jumped by more than 20%.