Finding the best mid-cap stocks to buy in 2024 is no walk in the park. While these promising companies often have growing revenues and profits, that does not always last. Moreover, even if the stocks are above a certain market capitalization threshold that won’t always translate into less volatility.
As we look ahead to 2028, there exists several up and coming companies poised for significant gains. This will be a result of secular tailwinds in the economy and favorable industry trends to drive growth. For investors, this segment of the market can be a sweet spot of growth potential without the heightened risk associated with smaller, more volatile companies.
With a balanced approach and healthy risk management practices, investors can position their portfolios for success over the next few years.
Now, let’s unpack the top 3 mid-cap stocks to buy that could make early investors filthy rich by 2028!
Qualys (QLYS)
Qualys (NASDAQ:QLYS), a leading provider of cloud-based security and compliance solutions, has established itself as a key player in the cybersecurity industry. As cyber threats continue to escalate globally, Qualys is well positioned for expansion through 2030.
Qualys is one of the top under-the-radar companies in 2024. With a market capitalization of approximately $5 billion, the company is an ideal candidate for the best mid-cap stocks to buy. Qualys’ cloud-based platform, TruRisk, continues to gain traction and is driving its revenue growth and profitability in 2024. In Q1 FY24, revenue increased 12% year over year to $145.8 million. Earnings per share swelled 35% year over year to $1.05 per share, driven by strong operational execution. Its risk-based approach and comprehensive suite of offerings from vulnerability management to web security is driving customer satisfaction. Moreover, its recent partnership with Oracle’s Cloud Infrastructure (OCI) has further strengthened TruRisk’s appeal across multi-cloud environments. Qualys’ strong margins and growing free cash flow profile is also a positive sign for its future growth.
Dycom Industries (DY)
Dycom Industries (NYSE:DY), a key provider of specialty contract services to the telecommunications industry, stands out as one of the best mid-cap stocks to buy in June.
DY stock plays a crucial role in the ongoing expansion and upgrade of telecommunication networks. The increased demand for high-speed data connectivity, and the continued rollout of 5G technology is an extremely positive tailwind. Its extensive experience and established relationships with major telecom providers, makes it well positioned to capitalize on these trends.
The company’s earnings have skyrocketed over the last 3 years, and growth doesn’t look to be slowing down anytime soon. In its latest quarterly financial results, revenue increased 9% year over year to $1.14 billion. Net earnings increased 21% year over year to $62.6 million, or $2.12 per share. Moreover, contracted revenue growth remains robust, driven by strong demand for the deployment of high-capacity fiber optic networks. These positive developments certainly make DY stock a candidate to surge 50% or more by 2028.
Invesco S&P MidCap Momentum ETF (XMMO)
Invesco S&P MidCap Momentum ETF (NYSEARCA:XMMO) is a great investment choice for those seeking diversified exposure to the top mid-cap stocks to buy. While not exactly a stock, this ETF seeks to track the performance of the S&P MidCap 400 Momentum Index.
Invesco S&P MidCap Momentum ETF is a hidden gem among the top ETFs to significantly outperform through 2028. It is having an incredible year thus far, up 29% as compared to the S&P 500’s rising 15%. The ETF’s strategy is focused on selecting companies with strong price momentum, which is often indicative of underlying business fundamentals and growth potential. Notable companies include Lennox International (NYSE:LII), Emcor Group (NYSE:EME), and Elf Beauty (NYSE:ELF). Additionally, its expense ratio of 0.34% is relatively cost effective when considering its performance in comparison to other ETFs on the market. While this can be true in the present moment, it’s important to note that past performance is not indicative of future results. Therefore, investors should only invest what they can afford to potentially lose.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
