Displaying items by tag: midcaps

Recession panic is rampant and over four-fifths of the US think the economy is going to turn into a recession in 2022 according to a CNBC poll. The rising inflation is the primary concern and a major factor give how well other area of the economy are performing. As a result, investors and hedge funds are turning to mid-cap stocks to prepare for the worst. Capri Holdings Limited is being held by over 40 hedge funds and carries an attractive P/E ratio of 14.23 for many investors. Next up is Valvoline Inc. which has seen its sales boom as it expanded into EV. Finally, nearly 50 hedge funds are holding luxury accessory company Tapestry Inc. and have almost $900 million in investments there.

FINSUM: Stable stocks could provide some recession cushion if things turn for the worst.

The conventional wisdom in markets has always been that large caps hold up better in periods of volatility, and small caps outpace in returns when markets start to recover. The reality, however, is far different. If you take a look at a series of turbulent periods of the last few decades, you can see a clear trend: midcaps actually perform better. They suffer similar losses during periods of volatility, but actually recover faster than both “domestically-focused” small caps and “mature” large caps. In periods of high volatility, midcaps have fallen by 41% on average, slightly less than large caps at 42.93% and small caps at 45.05%. In periods of recovery, it has taken midcaps only 304 days to recover versus 544 for large caps, and 432 for small caps.

The data highlights the significant outperformance of midcaps versus their peers. So how can investors best commit capital to midcaps? Take a look at State Street’s SPDR S&P MIDCAP 400 ETF.

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n.b. This is sponsored content and not FINSUM editorial.

Source: https://www.ssga.com/library-content/pdfs/etf/us/mid-caps-defy-conventional-wisdom.pdf

(New York)

Midcaps are perhaps the least loved of the market cap grouping. Small caps get a lot of attention, as do large and megacaps, but midcaps are a bit “neither here nor there”. That said, they offer some compelling opportunities, and today we will highlight some of those on the dividend front. Midcaps are generally good dividend payers, with 275 of the S&P MidCap 400 paying dividends. Five stocks to look at include: SABER (SABR), Manpower Group (MAN), Webster Financial (WBS), National Instruments (NATI), and j2Global (JCOM). All the shares pay 2% or more in dividend yield.

FINSUM: Megacaps seem to get the least love because they comprise some of the less exciting companies in the market and at first glance don’t seem to have the growth potential of small caps, or the momentum potential of large caps.

(New York)

How about some high growth and low risk stocks for your portfolio? Sounds too good to be true, but Barron’s has run a piece today highlighting the top picks of a midcap fund manager who is aiming for that profile. The idea of the Touchstone Mid Cap Growth Fund (TEGAX) is to find good growth at a reasonable price. The fund has returned 13.6% per year over the last five years. Their top holdings include: Worldpay, Pioneer Natural Resources, FleetCor Technologies, TransUnion, Tiffany, and Cooper.

FINSUM: These are some very diverse picks. Examining the fund’s methodology, we like their approach and suspect these stocks are worth a look.