Mid-cap stocks are worth between $2 billion and $10 billion on the market. These stocks fall somewhere between large- or mega-cap companies, which are known for their stability, and small-cap companies, which are usually targeted by investors due to their potential for quick growth.
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| 2025's Top 5 Mid-Cap Stocks to Keep an Eye on |
However, for cautious investors, mid-cap stocks can yield respectable returns and are more reliable than their small-cap counterparts. As of April 4, 2022, we look at five of the best-performing mid-cap companies for 2022 based on one-year trailing total returns.
- The best-performing mid-cap stocks as of April 4, 2022, had all generated one-year trailing total returns exceeding 165 percent.
- These stocks include Devon Energy, Avis Budget Group, Antero Resources, Range Resources, and Alcoa.
- More business and leisure travel has benefited several of the top-performing mid-cap stocks as COVID-19 regulations have been loosened.
- Additionally, some mid-cap companies have benefited from US sanctions against Russian gas and oil producers.
5- CAR, or The Avis Budget Group Inc.
Avis Budget Group, Inc. (CAR) operates as a car rental and car-sharing firm. It operates under well-known names like Avis, Budget, and Zipcar. Avis Budget stock has delivered total gains of 251.1 percent during the last year.
Demand has increased as COVID-19 requirements have been relaxed. Avis reported a net income of $381 million in the fourth quarter of 2021, compared to a net loss the previous year, while revenues nearly doubled.
4- Antero Resources Corporation (AR)
Antero Resources Corporation (AR) is a natural gas exploration and production firm located in Colorado. It continues to operate in the United States and Canada. Antero, like many other U.S. oil and gas corporations, may have profited in recent weeks from the U.S. and international sanctions imposed on Russia in response to the latter's invasion of Ukraine.
In early March, the White House prohibited imports of Russian oil, coal, and liquefied natural gas. Antero stock has returned 186.1 percent during the last year.
3- Range Resources Corporation (RRC)
Range Resources Corporation (RRC) is an independent oil and gas exploration and production firm established in Texas. Its activities are based in Pennsylvania's Marcellus Shale. Many of the same reasons that influenced Antero Resources are likely to have influenced Range Resources. It has had an annual total return of 185.3 percent.
2- Alcoa Corporation (AA)
Alcoa, headquartered in Pennsylvania, is a major manufacturer of aluminum, bauxite, and alumina products. Customers in the aluminum sector from all over the world are served by the firm. By volume, it is the world's largest bauxite miner and alumina refiner.
Aluminum and other metal prices have skyrocketed in recent weeks as a result of Russia's invasion of Ukraine. In the last year, Alcoa has returned 181.8 percent.
1- Devon Energy Corporation (DVN)
Devon Energy Corporation (DVN) is an exploration, development, and production business for oil and gas. The firm also transports and processes natural gas, as well as oil, gas, and associated goods. It has produced 168.2 percent one-year trailing total returns.
Which mid-cap stocks are performing the best?
Based on one-year trailing total returns as of April 4, 2022, the top-performing mid-cap stocks are CAR, AR, RRC, AA, and DVN.
What are the top-performing mid-cap stocks all about?
Mid-cap stocks that have performed well have done so for a variety of reasons. In certain circumstances, these firms may have profited from a large-scale shift away from Russian oil, gas, and minerals as a result of US and international sanctions imposed when Russia launched an invasion of Ukraine.
What is the most effective approach to investing in mid-cap stocks?
Investors may want to invest in individual mid-cap firms, but they may also discover that a wide or thematically focused mid-cap stock exchange-traded fund (ETF) increases diversification while decreasing risk.
Mid-cap companies are sometimes neglected, yet the equities listed above have all delivered considerable gains over the last year. Investors looking to diversify their portfolio by adding mid-cap equities may want to consider a specialized mid-cap ETF.
Broad-based mid-cap ETFs, such as the Vanguard Mid-Cap ETF (VO) or the iShares Core S&P Mid-Cap ETF (IJH), can help with this. For investors seeking a more focused vehicle, there are also thematic mid-cap funds. The best mid-cap ETFs list on Investopedia is a fantastic place to start your search.
