5 Best Mid-Cap Stocks To Buy Now

In this article, we discuss 5 best mid-cap stocks to buy now. If you want to see more stocks in this selection, check out 16 Best Mid-Cap Stocks To Buy Now. 

5. Black Knight, Inc. (NYSE:BKI)

Number of Hedge Fund Holders: 47

Market Cap as of February 6: $9.533 billion 

Black Knight, Inc. (NYSE:BKI) is a Florida-based company that provides integrated software, data, and analytics solutions in North America and Internationally. On January 20, Black Knight, Inc. (NYSE:BKI) stock rose 4% following a report that bankers have been consulted regarding potential divestitures as Intercontinental Exchange, Inc. (NYSE:ICE) seeks regulatory approval for its acquisition. The $13 billion planned acquisition of Black Knight was announced in May, 2022. 

On December 2, Barclays analyst Manav Patnaik downgraded Black Knight, Inc. (NYSE:BKI) from Overweight to Equal Weight with an unchanged price target of $65. He is waiting for more clarity on the outlook for U.S. business and information services stocks in 2023 and recommends reducing exposure until companies provide guidance. He prefers companies that provide conservative guidance.

According to Insider Monkey’s Q3 data, 47 hedge funds were bullish on Black Knight, Inc. (NYSE:BKI), compared to 46 funds in the last quarter. Simon Davies’ Sand Grove Capital Partners is the biggest stakeholder of the company, with 1.4 million shares worth $93 million. 

Madison Funds made the following comment about Black Knight, Inc. (NYSE:BKI) in its fourth-quarter 2022 investor letter:

“Our largest individual detractors were Brookfield Corporation, Alphabet, Amazon, Black Knight, Inc. (NYSE:BKI), and Dollar Tree. Alphabet’s price-to-earnings multiple continues to contract due to concerns about the potential for revenue to be more economically sensitive than it has been historically, given the vast size of the business today. At Amazon, cost pressures and slowing AWS growth weighed on its share price. The regulatory status of Intercontinental Exchange’s pending acquisition offer for Black Knight remains a concern, while in the interim, business conditions have deteriorated given the slowdown in the mortgage market.”

4. RH (NYSE:RH)

Number of Hedge Fund Holders: 48

Market Cap as of February 6: $7.925 billion 

RH (NYSE:RH) is a California-based home furnishings retailer that provides a diverse range of products that fall into categories like furniture, lighting, textiles, bathware, home decor, and outdoor and garden items. In Q3, the business generated $102 million in adjusted free cash flow, ending the quarter with $2.15 billion in cash, total net debt of $375 million, and a trailing twelve months adjusted EBITDA of $1.0 billion. RH (NYSE:RH) is one of the best mid-cap stocks to invest in. 

On January 4, Guggenheim analyst Steven Forbes wrote in a research note that RH (NYSE:RH) reported in a SEC filing that it had 23,064,215 shares of common stock outstanding as of January 3. This led the analyst to conclude that RH (NYSE:RH) had repurchased 1,545,321 shares between December 15, 2022 and January 3, which he estimates to be worth approximately $400 million based on the average trading price during that period. The analyst is “slightly raising” his earnings per share estimates accordingly and continues to have a Buy rating on RH (NYSE:RH) shares with a price target of $350.

According to Insider Monkey’s data, 48 hedge funds were long RH (NYSE:RH) at the end of the third quarter of 2022, compared to 59 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 2.36 million shares worth $580.7 million.  

Polen Capital made the following comment about  RH (NYSE:RH) in its Q4 2022 investor letter:

“RH (NYSE:RH) is a leading luxury retailer in home furnishings, including high end luxury furniture, home décor, lighting, textiles, etc. We have a long history with RH as an existing holding in our U.S. SMID strategy, and we capitalized on the market volatility to add it to the Portfolio. The company’s competitive advantage stems from the strength of its brand and its unique—and often misunderstood—business model, which has allowed RH to build a luxury empire at scale and with high returns on capital. We believe RH has a long runway to expand into other home furnishings categories, expand its footprint internationally, and launch new luxury categories. While the business faces near-term challenges, and the stock’s valuation reflects this, we are confident in the company’s long-term prospects and the long track record of CEO Gary Friedman.”

3. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Number of Hedge Fund Holders: 57

Market Cap as of February 6: $9.968 billion 

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is a Arizona-based company that offers work space and storage solutions in the United States, Canada, Mexico, and the UK. It rents out modular spaces and portable storage containers to customers in the commercial, industrial, construction, education, energy, natural resources, government, and other industries. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is one of the best mid-cap stocks to monitor. 

On December 2, Barclays analyst Manav Patnaik raised the price target on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) to $55 from $50 and kept an Overweight rating on the shares. The analyst seeked more clarity regarding the future of business and information services stocks in the US for 2023, and suggested reducing exposure and waiting for guidance from company leaders. 

According to Insider Monkey’s Q3 data, 57 hedge funds were long WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), compared to 61 funds in the prior quarter. 

Carillon Tower Advisers made the following comment about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in its Q3 2022 investor letter:

“The strategy’s top overall contributor during Q3 2022 was WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC). WillScot Mobile Mini produces and leases mobile storage systems and modular offices. The company is exposed to the non-residential construction cycle which is still very robust. Also, WillScot Mobile Mini enjoys significant pricing power, therefore leading to steadily expanding operating margins.”

2. Antero Resources Corporation (NYSE:AR)

Number of Hedge Fund Holders: 65

Market Cap as of February 6: $8.248 billion 

Antero Resources Corporation (NYSE:AR) was founded in 2002 and is headquartered in Denver, Colorado. It is an independent oil and natural gas company that acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil in the United States. On January 24, Wells Fargo analyst Roger Read started covering Antero Resources Corporation (NYSE:AR) with a positive outlook, giving the company an Overweight rating and setting a price target of $34. Although there is currently an oversupply of natural gas in the US which may cause short-term challenges, the company’s advantage is its integrated midstream operations. Wells Fargo believes Antero Resources Corporation (NYSE:AR) will have low single-digit growth with minimal capital expenditure in 2023.

According to Insider Monkey’s third quarter database, 65 hedge funds were bullish on Antero Resources Corporation (NYSE:AR), compared to 64 funds in the last quarter. D E Shaw is the biggest position holder in the company, with 3.7 million shares worth $114.18 million. 

TimesSquare Capital made the following comment about Antero Resources Corporation (NYSE:AR) in its Q3 2022 investor letter:

“New to the portfolio this quarter is Antero Resources Corporation (NYSE:AR), a natural gas focused exploration and production company with operations in Pennsylvania and Ohio. The continued buildout of U.S. liquefied natural gas stems from utility plants switching from coal to natural gas and European demand.”

1. Bill.com Holdings, Inc. (NYSE:BILL)

Number of Hedge Fund Holders: 70

Market Cap as of February 6: $9.987 billion 

Bill.com Holdings, Inc. (NYSE:BILL) offers cloud-based solutions that streamline, digitize, and automate the financial processes of small to medium-sized businesses globally. On February 2, the company reported a FQ2 non-GAAP EPS of $0.42 and a revenue of $260 million, outperforming Wall Street estimates by $0.28 and $16.99 million, respectively. For FY 2023, Bill.com Holdings, Inc. (NYSE:BILL) expects total revenue to range between $999 million to $1.007 billion, while the consensus revenue estimate is $999.77 million. Similarly, the company foresees adjusted EPS of $0.99 to $1.05, while the consensus EPS estimate is $0.56.

On February 3, Keith Weiss, an analyst at Morgan Stanley, reduced the target price for Bill.com Holdings, Inc. (NYSE:BILL) to $185 from $200 while maintaining an Overweight rating on the stock. Despite the recent macroeconomic impacts that were evident in the company’s fiscal second quarter, the analyst believes that Bill.com Holdings, Inc. (NYSE:BILL)’s long-term prospects remain strong, due to its sustained competitive advantage and unique approach to the market. The analyst stated that the “structural story” of Bill.com Holdings, Inc. (NYSE:BILL) is not damaged.

According to Insider Monkey’s data, 70 hedge funds were long Bill.com Holdings, Inc. (NYSE:BILL) at the end of Q3 2022, up from 46 funds in the last quarter. Colin Moran’s Abdiel Capital Advisors is the leading stakeholder of the company, with 2 million shares worth $267.5 million. 

TimesSquare Capital made the following comment about Bill.com Holdings, Inc. (NYSE:BILL) in its Q3 2022 investor letter:

“Bill.com Holdings, Inc. (NYSE:BILL) offers cloud-based software that simplifies, digitizes, and automates back-office functions for small and mid-sized businesses. The company has indicated that customer spending softened a bit in recent months and that has been factored into forward guidance. We decided to sell out of the position, which had declined by -20% while it was held in the quarter.”

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