Top Investors’ Stock Portfolio: 5 Mid-Cap Stocks To Buy

In this article, we discuss 5 best mid-cap stocks to buy according to top investors. If you want to see more stocks in this selection, check out Top Investors’ Stock Portfolio: 10 Mid-Cap Stocks To Buy. 

5. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Number of Hedge Fund Holders: 53

Market Capitalization as of February 24: $18.436 billion

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a New York-based company that develops, publishes, and markets interactive entertainment solutions for customers worldwide. It is one of the best mid-cap stocks to invest in. 

On February 8, Gerrick Johnson, an analyst at BMO Capital, increased the firm’s price target for Take-Two Interactive Software, Inc. (NASDAQ:TTWO) from $120 to $130 while maintaining an Outperform rating on the shares. According to the analyst’s research note to investors, Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s Q3 results were not as bad as anticipated, despite the management reducing guidance due to cautious purchasing behavior affecting new game releases and recurrent spending in existing titles. The company is still benefiting from the positive trends in the video game industry, such as the shift towards digital distribution that allows for higher margins and additional sales through multiplayer online services, the analyst told investors.

According to Insider Monkey’s Q4 data, 53 hedge funds were long Take-Two Interactive Software, Inc. (NASDAQ:TTWO), compared to 63 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 2.85 million shares worth $297 million.

Diamond Hill All Cap Select Strategy made the following comment about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q4 2022 investor letter:

“Video game developer Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has faced weakness in the mobile gaming market, in addition to game-launching delays. The company reported underwhelming quarterly results in Q4 and lowered its full-year guidance. After reexamining our long-term thesis, we decided to exit our position in favor of more attractive opportunities.”

4. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 53

Market Capitalization as of February 24: $16.756 billion

CF Industries Holdings, Inc. (NYSE:CF) was founded in 1946 and is headquartered in Deerfield, Illinois. The company manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. On January 31, CF Industries Holdings, Inc. (NYSE:CF) declared a $0.40 per share quarterly dividend, in line with previous. The dividend is payable on February 28, for shareholders of record on February 15. CF Industries Holdings, Inc. (NYSE:CF) is one of the best mid-cap stocks to invest in. 

On February 21, Andrew Wong, an analyst at RBC Capital, decreased the firm’s price target for CF Industries Holdings, Inc. (NYSE:CF) from $130 to $125. However, he maintained an Outperform rating on the shares. The analyst observed that the demand for early-season nitrogen markets has been sluggish, resulting in weaker prices. Nonetheless, the firm anticipates a mild recovery in demand during the Northern Hemisphere spring season. RBC Capital further said that it remains optimistic about CF Industries Holdings, Inc. (NYSE:CF)’s long-term prospects due to the company’s solid nitrogen fundamentals and efficient execution, which continue to generate significant cash flow.

According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on CF Industries Holdings, Inc. (NYSE:CF), compared to 65 funds in the earlier quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the biggest stakeholder of the company, with 2.4 million shares worth $209.6 million. 

Here is what Chartwell Investment Partners has to say about CF Industries Holdings, Inc. (NYSE:CF) in its Q2 2022 investor letter:

“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”

3. Liberty Broadband Corporation (NASDAQ:LBRDK)

Number of Hedge Fund Holders: 58

Market Capitalization as of February 24: $12.948 billion

Liberty Broadband Corporation (NASDAQ:LBRDK) is a Colorado-based communications company that provides data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, educational, and medical institutions. On October 13, Citi analyst Michael Rollins maintained a Buy recommendation on Liberty Broadband Corporation (NASDAQ:LBRDK) but lowered the firm’s price target on the shares to $91 from $130. The analyst revised his financial projections for Charter, leading to a reduction in Citi’s target price for Charter to $350. Rollins believes that Liberty Broadband is still undervalued, trading at a discount of approximately 16% based on its estimated net asset value.

According to Insider Monkey’s Q4 data, 58 hedge funds were long Liberty Broadband Corporation (NASDAQ:LBRDK), and Boykin Curry’s Eagle Capital Management held the largest stake in the company, comprising 7.8 million shares worth nearly $597 million. 

Longleaf Partners Fund made the following comment about Liberty Broadband Corporation (NASDAQ:LBRDK) in its Q4 2022 investor letter:

“Liberty Broadband Corporation (NASDAQ:LBRDK) – Cable and media holding company Liberty Broadband declined amid worsening sentiment for its underlying cable business Charter. We believe the Liberty management team will successfully close the valuation gap at both underlying holding Charter and hold co Liberty Broadband, as we have seen sentiment on cable stocks shift many times over our decades at Southeastern. This remains a good business run by great partners.”

2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Number of Hedge Fund Holders: 61

Market Capitalization as of February 24: $18.97 billion

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a California-based company that develops and commercializes therapies for serious and life-threatening rare diseases and medical conditions. The consensus Q4 EPS estimate for BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is $0.39 and the consensus revenue estimate is $538.24 million, up 19.7% on a year-over-year basis. 

On February 21, Citi analyst David Lebowitz initiated coverage of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) with a Neutral rating and a $116 price target. The analyst acknowledged that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a leading developer of therapies for rare diseases, and has two potentially successful drugs, Voxzogo and Roctavian, in early launches. However, the analyst believes that the company’s recent progress and anticipated achievements in 2023 are already reflected in the current share price. Lebowitz predicts that investors will be closely watching the launch of both drugs, and that the FDA approval of Roctavian in 2023 will be crucial for BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to meet market expectations.

According to Insider Monkey’s Q4 data, 61 hedge funds were bullish on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), compared to 62 funds in the last quarter. Julian Baker and Felix Baker’s Baker Bros. Advisors is the biggest position holder in the company, with 7.6 million shares worth $788.6 million. 

Here is what Carillon Tower Advisers specifically said about BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) in its Q2 2022 investor letter:

“BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) rose as the company announced a new approval in Japan for its drug to treat achondroplasia (dwarfism), and investors may have become more optimistic regarding its therapy for hemophilia following a positive opinion from European drug regulators. The drug is pending approval and has been delayed by the U.S. Food and Drug Administration to collect more data.”

1. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 65

Market Capitalization as of February 24: $15.996 billion

Expedia Group, Inc. (NASDAQ:EXPE) was founded in 1996 and is headquartered in Seattle, Washington. It is an online travel company in the United States and internationally, and operates through Retail, B2B, and trivago segments. Expedia Group, Inc. (NASDAQ:EXPE) is one of the premier mid-cap stocks to invest in. 

On February 13, Susquehanna analyst Shyam Patil increased the price target on Expedia Group, Inc. (NASDAQ:EXPE) from $100 to $116, while maintaining a Neutral rating on the shares. The analyst noted that although the company’s Q4 results were mixed, they faced significant challenges due to storms and foreign exchange rates. However, if these factors are excluded, gross bookings would have exceeded the levels achieved in 2019. Additionally, Expedia Group, Inc. (NASDAQ:EXPE)’s management is confident about the company’s future trajectory, especially heading into 2023, as per the analyst’s research note to investors. 

According to Insider Monkey’s Q4 data, 65 hedge funds were bullish on Expedia Group, Inc. (NASDAQ:EXPE), compared to 76 funds in the earlier quarter. PAR Capital Management is the largest stakeholder of the company, with 3.50 million shares worth $306.6 million. 

Here is what Miller Value Partners specifically said about Expedia Group, Inc. (NASDAQ:EXPE) in its Q3 2022 investor letter:

“Expedia Group, Inc. (NASDAQ:EXPE) ($92.69) has a high teens free cash flow yield, trades at 14x 2022 and 10x 2023 earnings. We believe it can sustain earnings per share growth in the mid-teens. It massively improved its business and margins during the pandemic, has repaired its balance sheet and is chaired by an amazing capital allocator, Barry Diller. We think it’s worth more than double the current price.”

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