Why Is UniFirst Corporation (UNF) Among the Hottest Mid-Cap Stocks So Far in 2025?

We recently compiled a list of the 10 Hottest Mid-Cap Stocks So Far in 2025. In this article, we are going to take a look at where UniFirst Corporation (NYSE:UNF) stands against the other mid-cap stocks.

If you’ve been fixated on the usual suspects in the S&P 500, you might be missing out on some solid action. Many mid-cap stocks have been delivering stellar gains in the first few weeks of this month, and there’s a good chance the momentum will stick around.

We believe they’ll prove to be more nimble than the large-cap stocks. It’s worth looking at them because they are comparatively trading at more attractive valuations and they also strike the sweet spot between the stability of large caps and the growth potential of small caps.

The S&P MidCap 400 index has outpaced the S&P 500 index year-to-date. It’s not just a flash in the pan, either. Historically, mid-caps have outperformed both their larger and smaller counterparts in 55% of rolling five-year periods since 1983. As such, it’s worth looking deeper into each top mid-cap performer.

A team of workers wearing the company’s protective wear, looking off into the dawn.

UniFirst Corporation (NYSE:UNF)

• YTD Performance: 30.6%

UniFirst (NYSE:UNF) is a workplace uniform and protective gear company. So, if you’ve ever seen employees in matching uniforms at places like car dealerships, restaurants, or manufacturing plants, there’s a good chance UniFirst had a hand in supplying them.

I believe the onshoring trend accelerating in the past two years and the increasing amount of protectionism has had a hand in UNF stock bottoming out and starting a solid recovery rally in recent months. This uniform company is even ahead of most software firms in terms of year-to-date gains.

Something else that turned heads was UniFirst’s confirmation that they rejected an acquisition proposal from rival Cintas Corporation at $5.3 billion. The company basically said, “Thanks, but no thanks.” UniFirst probably wants to remain independent and sees significant upside on its own.

Overall UNF ranks 4th on our list of the hottest mid-cap stocks so far in 2025. While we acknowledge the potential of UNF as an investment, our conviction lies in the belief that some 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 UNF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 10 Hottest Mega-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025

Disclosure: None. This article is originally published at Insider Monkey.