5 Best Mid-Cap Stocks To Buy Now

1. Builders FirstSource, Inc. (NASDAQ:BLDR)

Market Cap as of October 14: $9.04 Billion

Number of Hedge Fund Holders: 53

Builders FirstSource, Inc. (NASDAQ:BLDR) is a leading American manufacturer and supplier of building materials. At the end of the second quarter of 2022, 53 hedge funds held stakes in Builders FirstSource, Inc. (NASDAQ:BLDR). The total value of these stakes amounted to $1.38 billion.

Analysts are bullish on Builders FirstSource, Inc. (NASDAQ:BLDR). This August, Stifel analyst Stanley Elliott raised his price target on Builders FirstSource, Inc. (NASDAQ:BLDR) to $92 from $87 and maintained a Buy rating on the shares. On August 17, Deutsche Bank analyst Joseph Ahlersmeyer took coverage of Builders FirstSource, Inc. (NASDAQ:BLDR) with a Buy rating and a $93 price target.

As of October 14, Builders FirstSource, Inc. (NASDAQ:BLDR) has a trailing twelve-month PE ratio of 4.29 and has free cash flows of over $2.82 billion. The company has a trailing twelve-month operating margin of 16.18% and is one of the best profitable and cash-rich mid-cap stocks to buy now.

As of June 30, Coliseum Capital is the largest shareholder in Builders FirstSource, Inc. (NASDAQ:BLDR) and has stakes worth $347.05 million in the company.

Here is what GoodHaven Capital Management had to say about Builders FirstSource, Inc. (NYSE:BLDR) in its second-quarter 2022 investor letter:

“We have had for some time a material exposure to two companies, Lennar Corp and Builders FirstSource, Inc. (NYSE:BLDR), that operate in/around the housing market. Our long-term enthusiasm for their future remains unchanged. On the way up we reminded you that although these had become better businesses (an important part of our thesis), they were still cyclical businesses and that we prepared to own them through a normal housing cycle, versus trying to predict the cycle. In July 2021 we wrote:

“One of these days the red hot housing market will slow—in fact a more normalized pace of demand might be better—as Lennar and its brethren are striving to balance very strong demand with higher raw materials and tight labor markets. While we trimmed our Builders FirstSource position to free up funds for new buys, we remain very constructive on both Builders and Lennar’s long-term prospects. Expect periodic normal demand slowdowns from time to time, though we think slowdowns will be less pronounced than in prior cycles.””

You can also take a look at 11 Best Micro-cap Stocks To Buy and 11 Best VR Stocks To Buy.

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