The stock market may be turbulent right now and investors may not be in a buying mood, but identifying and purchasing good companies for at least a three-to-five year haul is usually the best way for long-term investors to generate solid returns.
That’s why this list from Forbes of America’s best 100 mid-sized companies caught our attention.
While headlines tend to focus on mega-companies like Tesla and Amazon, mid-cap firms like Tempur-Sealy tend to have more room to run than their large-cap counterparts and less risk than small-caps.
“Mid-cap is a bit of a sweet spot,” says Nick Kalivas, Head of Factor and Core Equity Product Strategy at Invesco who oversees strategy for its indexes and ETFs, including the Invesco S&P MidCap Momentum ETF (XMMO).
“They’re not small-cap anymore, they’ve matured, gathered more financial strength and have more of a track record of success based on their ability to grow, but they still have more of a growth runway relative to larger-cap.”
To rank the top 100 performers, Forbes analyzed more than 1,000 companies with market capitalizations between $2 billion and $10 billion based on stock returns, return on equity, sales growth and earnings growth over the last five years, with more weight given to data from the last 12 months.
Our top mid-cap companies are a mix of familiar brands including Tempur-Pedic, Crocs, Coca-Cola Bottling and Yeti – which topped last year’s best mid-cap stocks list – and some you may not have heard of like Fulgent Genetics (No. 26), a genomic testing specialist that recently began providing COVID tests.
Here is Forbes’ full list of America’s Best Mid-Sized Companies