Taking the middle path is a proven strategy to minimize risks for stock market investors and the reason for relying on mid-cap stocks. Blue chip large-cap stocks are ideal for long-term growth with stable and predictable earnings, but the wait can be long. The exceptionally high returns of small-cap stocks might seem attractive, but the risks are too much because of volatility and the uncertain global economy. The perfect solutions for safe investments are the mid-caps with market capitalization between $2 billion and $10 billion. The mid-cap stocks provide stronger growth opportunities and are more stable than small-cap stocks, which minimizes the risks significantly. However, mid-cap companies might experience volatility due to market turbulence. But it’s temporary, and despite causing huge swings, the stock price regains its position to stay in the upper levels.
Here are some stocks belonging to the mid-caps category that can give peace of mind to investors.
Polaris Inc. – A Safe Bet in Mid-Cap Stocks (PII)
Polaris Inc. is a sports vehicle manufacturer that includes motorcycles, snowmobiles, and off-road vehicles. The extremely high brand value insulates the company from the ill effects of inflation. However, near-term supply volatility may occur due to supply chain constraints. According to the projections of some experts, the company can post a growth of 12% organically in 2022. The company’s competitive edge could help consolidate and increase the market share over time. The company positions it well to avail the acquisition opportunities and expand internationally, especially in the parts/ accessories and marine segment. Polaris Inc’s current stock price of $107.48 could touch $184 over time and the reason for experts assigning it as a ‘buy’ stock. Many investors might even consider it for shortlisting as one of the best mid-cap stocks.
Williams – Sonoma Inc. (WSM)
Selling high-end home furnishings is the business of the US specialty retailer Williams – Sonoma Inc. Mid caps investors would find the company dependable enough. Despite pessimistic market pricing in the aftermath of the Covid19 pandemic that resulted in a sharp decline in the demand for home furnishings, the company is strong enough to overcome the adversities. According to analyst Jaime Katz, the annual growth of the remodel and repairs segment will be about 5% over the next ten years. By 2024, the company should achieve gross yearly sales of $10 billion. Williams- Sonoma stock is currently trading at $126.75 and could reach a fair value of $227, per experts’ estimates.
United States Steel Corporation (X)
United States Steel Corporation is a steel producer across North America and central Europe. The company’s high-value steel products include XG3, advanced proprietary high-strength steel. According to the company’s projections for Q1, 2022, it could post a record EBIDTA of $1.3 billion for the quarter. The adjusted diluted EPS (earnings per share) will likely be between $2.96 and $3.00. The company confirmed that there was high demand coupled with rising prices, and it could be rewarding for mid-cap stocks buyers to include the tock in their portfolio.
