3 Mid-Cap Stocks That Blend Stability and Explosive Growth

Mid-cap stocks can sometimes offer unique investment opportunities by combining growth potential with relative stability.

Unlike small caps, which can be risky yet offer significant growth potential, and large caps, which can be stable but provide slower growth prospects, mid-caps strike a balance between both.

This article delves into three mid-cap companies - all of which are positioned for hefty potential gains.

1. Helmerich and Payne/h2

After posting stronger-than-anticipated Q1 results in January, Helmerich and Payne (NYSE:HP) experienced increases in price targets and positive revisions of estimates by analysts.

Piper Sandler raised its price target for Helmerich & Payne to $44.00 from $41.00, reiterating its Neutral rating.

Morgan Stanley increased its price target to $46.00 from $44.00, keeping an Underweight rating. Barclays adjusted its price target to $42.00 from $40.00, maintaining an equal-weight rating.

The trend in analyst EPS forecasts for Helmerich & Payne for the forthcoming quarter is showcased by InvestingPro’s EPS Forecast Trend, indicating an increase from $0.73 in January (before earnings announcement) to $0.87 at present.

Source: Investing.com

The Fair Value analysis suggests a potential 33.3% increase in the stock price, whereas Wall Street analysts project an average growth of approximately 17%.

Source: Investing.com

2. Darling Ingredients/h2

Last week, Darling Ingredients (NYSE:DAR) reported EPS and revenue figures for Q4 that fell short of expectations.

Additionally, the company withdrew its EBITDA guidance for 2024, stating it would provide an update along with the Q1/24 results as visibility improves—a decision that initially negatively impacted the stock. However, the shares have since rebounded, erasing the initial losses and even posting slight gains.

In response to the announcement, several Wall Street firms revised their price targets downward for Darling Ingredients. Stifel reduced its price target to $95.00 from $120.00 but kept a Buy rating. UBS cut its price target to $72.00 from $75.00, also maintaining a Buy rating. BMO Capital decreased its target to $57.00 from $60.00, maintaining an Outperform rating, and noting:

We lower estimates, reduce our target to $57, and expect the shares to be limited in the near term. However, we reiterate Outperform as we see attractive risk/ reward with 2024 EBITDA likely north of $1.5 billion and a stronger earnings outlook beginning in 2025.

The company shares fell 38% since July 2023 highs following three consecutive earnings misses.

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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.