10 Best Mid Cap Tech Stocks to Buy Now

6. AppFolio Inc. (NASDAQ:APPF)

Upside Potential: 27.94%

Market Capitalization: $7.65 Billion

Number of Hedge Fund Holders: 40

AppFolio Inc. (NASDAQ:APPF) provides cloud-based software solutions for its customers in the property management and legal industries. The company’s software helps these businesses manage non-core tasks like accounting, billing, leasing, and customer communication more efficiently.

For property managers, AppFolio Inc. (NASDAQ:APPF) provides tools to help with tasks like collecting rent, tracking payments, and managing tenant communications. Meanwhile, for law firms, it offers software that helps manage case files, billing, and client communication. It also offers ongoing support and software updates.

Not only has the company’s revenue grown at a robust pace of 26.5% over the last five years, but its net margin has also seen a significant expansion. As of 2024, the net margin stood at a solid 25.7%. In its note on January 10, 2025, KeyBanc attributed the performance to its expanding average revenue per user. KeyBanc pointed out that the company’s stock is fairly valued on a free cash flow basis and that the stock’s current risk/reward is balanced.