Investing in mid-cap growth stocks has long been a favoured strategy for investors looking to strike a balance between the stability of large-cap companies and the high-growth potential of smaller firms. Mid-cap companies, typically defined as those with market capitalizations between $2 billion and $10 billion, occupy that unique space in the market. They are less risky than small-caps, established enough to have proven business models and good access to capital markets, and to top it all, still have ample room for expansion. This combination allows them to swiftly adapt to market changes and capitalize on emerging opportunities.
Many large asset managers have recognized the advantages of mid-cap growth stocks and developed strategies to maximize returns in this segment. Macquarie Asset Management’s equities team highlights that historically, U.S. mid-cap companies have outperformed the broader U.S. market, with mid-cap growth firms delivering even stronger returns compared to a diversified mid-cap universe. Their investment approach focuses on gaining exposure to high-quality mid-cap companies, as they believe these firms not only outperform their lower-quality counterparts but also exhibit greater resilience during market downturns.
Similarly, J.P. Morgan’s Mid-Cap Growth Strategy emphasizes investing in a diversified portfolio of mid-cap companies with above-average growth prospects. The firm prioritizes businesses with leading competitive positions, durable business models, and strong management teams capable of sustaining long-term growth. Their approach reflects the broader market consensus that mid-cap stocks offer an attractive risk-reward profile for investors willing to take a strategic, selective approach.
The strength of mid-cap growth stocks as an investment theme was further reinforced in an October 2024 interview with CNBC, where Eduardo Lecubarri, Managing Director and Global Head of Small and Mid-Cap Equity Strategy at J.P. Morgan, provided insightful commentary on the market environment. He acknowledged the complexity of today’s investment landscape, noting that broader market opportunities remain unclear. However, he emphasized the potential within small- and mid-cap stocks, describing the current moment as a “generational opportunity.” Mr. Lecubarri explained:
“Especially if you are able to buy small-and-mid-cap (SMID) stocks versus large caps, I think the opportunity there is bigger than anything I have ever seen in the last thirty years. It is a generational opportunity, for a lot of reasons. In 2022-23, my recommendation was to stay away from SMID for many reasons (mostly macroeconomic). In November 2023, I changed my view and went overweight. The underperformance was large, valuation is attractive, fundamentals are improving. The story has got a lot more enticing.”
This perspective aligns with the broader sentiment among market experts who see mid-cap stocks as a compelling investment avenue in the medium term. With that in mind, we have curated a list of the 10 best mid-cap growth stocks to buy according to analysts. Let’s take a closer look at these promising investment opportunities.
A businessman holding up a chart displaying business growth for a middle market company.
Our Methodology
To determine the 10 best mid-cap growth stocks to buy, we conducted a comprehensive screening of U.S.-listed companies operating in growth-oriented industries with a market capitalization between $2 billion and $10 billion. Our selection criteria focused on identifying stocks that have demonstrated strong revenue expansion with sales growth exceeding 20% over the past five years and expected to see continued quarter-over-quarter growth. Additionally, we incorporated a potential upside criterion of over 20%, ensuring that the shortlisted stocks present significant appreciation potential. For the top 10 stocks shortlisted with these criteria, we ranked them in ascending order of potential upside, with those having the highest upside placed at the top of the list. We also added the number of hedge funds which have stakes in these companies, as of Q3 2024.
Note: All pricing data is as of market close on February 11.
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10 Best Mid-Cap Growth Stocks to Buy According to Analysts
10. Clearwater Analytics Holdings Inc. (NYSE:CWAN)
Upside Potential: 26%
Number of Hedge Funds: 18
Clearwater Analytics Holdings Inc. (NYSE:CWAN) provides cloud-based investment accounting and reporting solutions. The company specializes in delivering comprehensive accounting, data, advanced analytics, and highly-configurable reporting for institutional clients, including asset managers, insurance companies, and corporations. Clearwater’s platform automates the aggregation, reconciliation, validation, and reporting of investment data, enabling clients to gain real-time, on-demand insights into their portfolios. As of Q3 2024, the platform aggregated and normalized data on over $7.3 trillion of global invested assets for over 1,300 clients.
Clearwater Analytics Holdings Inc. (NYSE:CWAN)’s innovative technology and strong customer base lay a solid foundation for growth. The increasing regulatory requirements for transparency in investment reporting further enhance the company’s value proposition. Currently, the company generates 80% of its revenue from the U.S. market, and expansion into new markets could potentially drive significant revenue growth.
On January 13, 2025, the company announced the acquisition of Enfusion Inc. (NYSE:ENFN) for $1.5 billion. With its strong position in the hedge fund and asset management markets, Enfusion is expected to accelerate Clearwater’s aim of building a front-to-back platform for the entire investment lifecycle. The deal not only expands Clearwater Analytics Holdings Inc. (NYSE:CWAN)’s addressable market (around a $2 billion+ opportunity in hedge funds) but will also increase its geographical reach in Europe and Asia. Post the news, a Morgan Stanley analyst upgraded the company to Overweight from Equal Weight, raising his price target to $34 from $30, calling the acquisition a “transformational step that makes the front-to-back opportunity a reality.”
9. Clear Secure Inc. (NYSE:YOU)
Upside Potential: 32%
Number of Hedge Funds: 25
Clear Secure Inc. (NYSE:YOU) offers a secure identity verification platform that primarily focuses on enhancing the travel experience for consumers. The company employs top-tier biometric capture technology to streamline the identification process at airports and other venues, allowing users to bypass traditional security lines.
Clear Secure Inc. (NYSE:YOU) has established a significant physical presence both in the US and globally. Its services are designed to improve efficiency and security for both travelers and businesses, with applications extending beyond travel to include sports and entertainment venues. The company’s growth strategy aims to capitalize on the increasing demand for expedited security solutions in the travel and event sectors. By forming partnerships with major airlines and venues, the company has built a solid foundation for growth, and its subscription-based model offers potential for recurring revenue.
In its Q3 2024 results, Clear Secure Inc. (NYSE:YOU) reported strong growth trends, with Total Cumulative Platform Uses reaching 220.4 million (+32% year-over-year), driven primarily by CLEAR Plus verifications and an increasing contribution from CLEAR Verified. Consequently, total revenue for the quarter grew 23.7% to $198.4 million, and total bookings rose by 18.7%. In her shareholder letter for the third quarter, the company’s CEO, Caryn Seidman Becker, expressed optimism about its outlook for 2025 and said:
“Looking ahead to 2025, we are excited by the multi-faceted growth opportunities across our secure identity network as we continue to drive bookings, expand margins, and accelerate free cash flow. With a strong foundation in place and a clear vision for the future, CLEAR is well-positioned to continue delivering value for our members, partners, and shareholders.”
8. Alkami Technology Inc. (NASDAQ:ALKT)
Upside Potential: 33%
Number of hedge funds: 18
Alkami Technology Inc. (NASDAQ:ALKT) is a provider of cloud-based digital banking solutions. Its unique Alkami Digital Banking Platform supports multiple tenants simultaneously. This platform enables financial institutions to onboard and engage new users, accelerate revenues, and significantly improve operational efficiency. It offers a comprehensive set of software products across various functions, including account opening, marketing, data insights, money movement, customer service, financial wellness, and security.
Alkami Technology Inc. (NASDAQ:ALKT) continued to show strong topline growth, as evidenced by its recently reported Q3 2024 results. In October 2024, the company announced a robust 27% year-over-year revenue increase for the third quarter, reaching $85.9 million. Profitability also improved, with an adjusted gross margin of 62.8% (up from 58.7% in Q3 2023) and an adjusted EBITDA of $8.3 million, a significant improvement over the nearly $1 million reported in Q3 2023. The company added 2.6 million new users, bringing the total live registered user base to 19.5 million as of the end of Q3 2024. Alkami Technology Inc. (NASDAQ:ALKT) signed nine new digital banking clients, including six credit unions and three banks, and renewed 14 clients, with several extending their contracts to 2031. These results are highly positive for the company’s long-term growth as it continues to gain market share and experience profitable growth. An analyst at JP Morgan recently raised his price target on Alkami Technology Inc. (NASDAQ:ALKT) to $45 from $42, reiterating his Overweight rating.
7. SiTime Corp. (NASDAQ:SITM)
Upside Potential: 36%
Number of hedge funds: 18
SiTime Corp. (NASDAQ:SITM) is a fabless semiconductor company that delivers precision timing solutions to the global electronics industry. Utilizing micro-electro-mechanical systems (MEMS) technology, SiTime’s products ensure reliable and accurate timing for electronic devices. They are distinguished by their high performance, resilience, reliability, programmability, compact size, and low power consumption. These products are integrated into more than 300 applications across diverse markets, including communications, data centers, automotive, industrial, aerospace, mobile, IoT, and consumer sectors. SiTime Corp. (NASDAQ:SITM) holds a commanding 90% market share in the MEMS timing devices market. The company’s innovative MEMS-based oscillators are gradually replacing traditional quartz oscillators, presenting significant market expansion opportunities.
On February 5, 2025, the company announced impressive Q4 2024 results. Net revenue surged by 61% year-over-year (YoY) or 18% sequentially (compared to the previous quarter) to just over $68 million. The company reported over 30% growth across all customer segments, with significant gains in the Communications, Enterprise, and Datacenter businesses, thanks to the crucial role of precision timing in AI. Additionally, the management projected a 64% YoY revenue growth for Q1, indicating a strong start to 2025. They also highlighted that the company ended the quarter with strong bookings for 2025, underscoring a positive outlook for the year. The results were well received by the market, leading to widespread upward earnings revisions. Barclays, Needham, Raymond James, and Stifel all raised their price targets in response.
6. Onto Innovation Inc. (NYSE:ONTO)
Upside Potential: 45%
Number of Hedge Funds: 34
Onto Innovation Inc. (NYSE:ONTO) designs, develops, manufactures, and supports process control, inspection, and metrology tools for the semiconductor industry. Its products are primarily utilized by silicon wafer manufacturers, integrated circuit (IC) fabricators, and advanced packaging manufacturers. Leveraging its extensive technology, the company specializes in creating advanced equipment and software that enhance semiconductor device manufacturing processes.
On February 6, Onto Innovation Inc. (NYSE:ONTO) posted a 21% YoY growth in its Q4 2024 revenue of $264 million driven by advanced nodes and advanced packaging markets. Adjusted operating margin improved 280 basis points YoY to 28.6% which resulted in a robust 43% growth in EPS of $1.51. In mid-January 2025, Cantor Fitzgerald began coverage of Onto Innovation Inc. (NYSE:ONTO) with an Overweight rating and a price target of $250, signifying a potential upside of 42% from the closing price on February 11. Around the same time, an analyst from Needham also listed the stock as a Top Pick in Semi Equipment for 2025, although he marginally reduced the price target to $220. The analyst highlighted concerns about the current semiconductor upcycle’s weakness and a possible downturn in the second half of 2026. Nonetheless, he believes that due to its exposure to TSMC and HBM packaging, and relatively no exposure to China, Onto Innovation Inc. (NYSE:ONTO) is well-positioned to withstand these challenges.
5. Uranium Energy Corp. (NYSEAMERICAN:UEC)
Upside Potential: 56%
Number of Hedge Funds: 21
Uranium Energy Corp. (NYSEAMERICAN:UEC) is actively involved in uranium mining and related activities, which include exploration, pre-extraction, extraction, and processing at projects in the United States, Canada, and the Republic of Paraguay. The company’s strategy is to establish itself as a leading low-cost uranium supplier in North America by expanding its extraction activities.
Uranium Energy Corp. (NYSEAMERICAN:UEC) is strategically positioned to benefit amidst rising demand for electricity generation, a global push towards decarbonizing electrical grids, and various geopolitical factors. According to the company’s quarterly report from October, new electricity demand projections indicated data center demand growth ranging from 60 to 90 gigawatts (GW) between 2023 and 2030 (based on the report, “US Data Center Power Outlook”).
On December 6, 2024, Uranium Energy (NYSEAMERICAN:UEC) completed the acquisition of Rio Tinto’s Wyoming assets, which include the fully-licensed Sweetwater Plant and uranium mining properties such as the Red Desert and Green Mountain Projects. These assets collectively hold approximately 175 million pounds of historic resources. The acquisition, valued at around $175.4 million, was funded through available liquidity. This move significantly boosts the company’s production capabilities in Wyoming’s Great Divide Basin and gives the company the largest licensed production capacity in the U.S. As of October 2024, UEC had $350 million in cash and no debt on its balance sheet, a robust financial position that should help it accelerate its production growth plans in an increasingly tight uranium market.
4. Procept BioRobotics Corp. (NASDAQ:PRCT)
Upside Potential: 58%
Number of Hedge Funds: 27
Procept BioRobotics Corp. (NASDAQ:PRCT) is a commercial-stage company specializing in surgical robotics solutions for urology. Its flagship product, the AquaBeam Robotic System, is an advanced image-guided system designed for minimally-invasive urologic surgeries.
Procept BioRobotics Corp. (NASDAQ:PRCT) aims to enhance patient outcomes and reduce recovery times through its minimally invasive solutions. The recent successful launch of the HYDROS Robotic System for Aquablation Therapy points to a promising future for the company. In Q3 2024, Procept BioRobotics Corp. (NASDAQ:PRCT) reported a 66% year-over-year revenue increase. Management anticipates continued strong momentum in Q4, projecting approximately 53% year-over-year revenue growth. In early December 2024, Morgan Stanley initiated coverage of Procept BioRobotics Corp. (NASDAQ:PRCT) with an Overweight rating.
3. Zeta Global Holdings Corp. (NYSE:ZETA)
Upside Potential: 104%
Number of hedge funds: 31
Zeta Global Holdings Corp. (NYSE:ZETA) operates an omnichannel data-driven cloud platform that provides consumer intelligence and marketing automation software to enterprises. Their omnichannel approach allows them to deliver personalized marketing across all addressable channels, including email, social media, web, chat, Connected TV, and video, among others. Zeta’s software and tools utilize AI to help customers target, connect with, and engage consumers, enabling them to acquire, grow, and retain consumer relationships more efficiently and effectively.
The investment case for the company is built on its proprietary data, innovative technology, and scalable marketing solutions. Leveraging AI, the company is well-positioned to benefit from the increasing demand for personalized and efficient marketing strategies.
After a report by the short seller Culper Research in November 2024, the stock plummeted 50% between November 8-15. Although the company refuted the claims and was cleared in a forensic review, the stock has yet to recover. Nonetheless, in early January 2025, an analyst from DA Davidson named Zeta Global Holdings Corp. (NYSE:ZETA) as their top pick in the marketing software space. He believes that upselling opportunities and the marketing cloud replacement cycle should help Zeta sustain 20% year-over-year topline growth.
2. Legend Biotech Corp. (NASDAQ:LEGN)
Upside Potential: 138%
Number of Hedge Funds: 31
Legend Biotech Corp. (NASDAQ:LEGN) is a clinical-stage biopharmaceutical company dedicated to developing innovative cell therapies for cancer treatment. The company is best known for its lead product candidate, LCAR-B38M, an autologous CAR-T cell therapy targeting malignancies. Legend Biotech uses advanced technologies to enhance the efficacy and safety of its therapies, aiming to address significant unmet medical needs in oncology.
According to the company’s corporate presentation from February 2025, Legend Biotech Corp. (NASDAQ:LEGN) is rapidly progressing in building a strong product portfolio with 11 pipeline programs in hematologic malignancies, solid tumors, and autoimmune diseases. Encouragingly, the CARVYKTI therapy for multiple myeloma (a type of blood cancer) was the company’s most successful CAR-T launch to date, with $334 million in net trade sales in Q4 2024. Management envisions a $5.0 billion potential for CARVYKTI, which is highly supportive of the company’s future growth trajectory. To achieve this potential and expedite the development and commercialization of its therapies, Legend Biotech Corp. (NASDAQ:LEGN) has partnered with industry leaders Johnson & Johnson and Novartis, both renowned for their strong research and development expertise.
1. CleanSpark Inc. (NASDAQ:CLSK)
Upside Potential: 143%
Number of Hedge Funds: 16
CleanSpark Inc. (NASDAQ:CLSK) is a bitcoin mining company that owns and operates a large portfolio of data centers across the United States, with a total contracted power capacity of approximately 853 megawatts (MW) as of December 31, 2024. The company’s competitive edge lies in its ability to optimize energy resources and improve operational efficiency, thereby reducing the marginal cost of mining Bitcoin and enhancing profitability. Its strategy also includes holding mined bitcoins on its balance sheet rather than selling them immediately.
CleanSpark Inc. (NASDAQ:CLSK) reported its Q1 2025 (fiscal year ending September 2025) earnings with an impressive 120% year-over-year revenue growth, reaching $162.3 million. Net income was $246.8 million, higher than the quarter’s revenue due to gains on the fair value of bitcoins (amounting to around $218 million) on its balance sheet. At the end of the December quarter, the company held over 10,000 bitcoins on its balance sheet. Additionally, CleanSpark recently raised $650 million through a convertible bond offering, which is expected to fund its target to reach 50 exahash from the current rate of around 40 exahash by the first half of 2025. Exahash is a metric that measures the computational power of a mining operation; a higher exahash rate indicates greater mining power.
While we acknowledge the potential of CLSK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CLSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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