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3 Top-Ranked Mid-Caps Investors Shouldn't Overlook

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Mid-cap stocks don’t receive much attention at times, as many are fixated on small-caps’ explosive growth characteristics and large-caps’ stable natures.

However, since they’re often less followed by analysts, it allows investors a window to get in ‘early’ before the crowd catches on.

In addition, mid-cap stocks are often seen as attractive acquisition targets for larger companies, potentially resulting in a buyout or merger that provides significant gains.

Three mid-cap stocks that investors should keep a close eye on – Graphic Packaging Holding Company (GPK - Free Report) , Wingstop (WING - Free Report) , and Jinko Solar (JKS - Free Report) – have all seen their near-term earnings outlook improve as of late.

Let’s take a closer look at each company.

Wingstop

Wingstop offers cooked-to-order, hand-sauced, and tossed chicken wings. Currently, the stock carries a favorable Zacks Rank #1 (Strong Buy).

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Image Source: Zacks Investment Research

The company has posted notably strong quarterly results as of late, exceeding the Zacks Consensus EPS Estimate by an average of 31% over its last four quarters. Just in its latest release, the wing titan penciled in a 28% EPS beat and reported revenue nearly 8% ahead of expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares are undoubtedly expensive, with the current 14.7X forward price-to-sales ratio sitting on the high end of the spectrum and well above the Zacks Retail and Wholesale sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

Graphic Packaging Holding Company

Graphic Packaging Holding is a leading provider of paperboard packaging solutions for various products. Analysts have raised their earnings estimates across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, GPK shares aren’t stretched in terms of valuation, with the current 8.5X forward earnings multiple sitting nowhere near the 14.3X five-year median and the Zacks Industrial Products sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

Jinko Solar

Jinko Solar is a widely famous solar technology company with its business covering the core links of the photovoltaic industry chain. The stock is currently a Zacks Rank #1 (Strong Buy).

The company posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 300%. Quarterly revenue totaled $3.4 billion, 3% ahead of expectations and improving by a rock-solid 45% year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

It’s hard to ignore the company’s growth trajectory, with earnings forecasted to climb 60% on 32% higher revenues in its current fiscal year (FY23). And in FY24, earnings and revenue are forecasted to grow 15% and 9%, respectively.

Bottom Line

Mid-cap stocks are sometimes forgotten about, as many investors opt for large-caps or the ‘more exciting’ small-caps.

However, mid-caps provide great opportunities for investors to get in early before others catch on. In addition, they can provide solid diversification to a portfolio.

All three mid-caps above – Graphic Packaging Holding Company (GPK - Free Report) , Wingstop (WING - Free Report) , and Jinko Solar (JKS - Free Report) – would be solid considerations for those with an appetite for mid-caps.

All three have witnessed favorable earnings estimate revisions recently, indicating that analysts have become optimistic regarding their near-term prospects.


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