Mid-cap stocks are those with market capitalization of between $2 billion and $10 billion. These stocks fall somewhere between small-cap companies, which investors often target for their dramatic growth potential, and large- or mega-cap companies, which tend to be known for their stability. But mid-cap stocks can provide solid returns for careful investors, and they tend to be more stable investments than small-cap counterparts. Below, we look at five top-performing mid-cap stocks for 2022, based on one-year trailing total returns as of April 4, 2022.
- The top-performing mid-cap stocks have all provided one-year trailing total returns in excess of 165% as of April 4, 2022.
- These stocks include Avis Budget Group, Antero Resources, Range Resources, Alcoa, and Devon Energy.
- Some top-performing mid-cap stocks have benefited from increased business and leisure travel as COVID-19 regulations have eased.
- Certain mid-cap companies have also benefited from U.S. sanctions targeting Russian oil and gas producers.
Avis Budget Group, Inc. (CAR)
Avis Budget Group, Inc. (CAR) is a rental vehicle and car-sharing company. It operates through well-known brands including Avis, Budget, and Zipcar. In the past year, Avis Budget stock has provided total returns of 251.1%. Demand has surged as COVID-19 regulations have eased. Avis posted net income of $381 million for the fourth quarter of 2021, compared with a net loss for the prior-year quarter, and revenues almost doubled for that period.
Antero Resources Corporation (AR)
Antero Resources Corporation (AR) is a Colorado-based natural gas exploration and production company. It maintains operations in the U.S. and Canada. Like many U.S. oil and gas companies, Antero may have benefited in recent weeks from U.S. and international sanctions against Russia over the latter's invasion of Ukraine. The White House banned imports of Russian oil, coal, and liquefied natural gas in early March. Antero stock has provided one-year total returns of 186.1%.
Range Resources Corporation (RRC)
Range Resources Corporation (RRC) is a Texas-based oil and gas independent exploration and production company. Its operations are in the Marcellus Shale in Pennsylvania. Range Resources has likely been affected by many of the same factors as Antero Resources above. It has provided one-year total returns of 185.3%.
Alcoa Corporation (AA)
Based in Pennsylvania, Alcoa is a leading producer of aluminum, bauxite, and alumina products. The company serves customers in the aluminum industry around the world. It is the largest global bauxite miner and alumina refiner by production volume. Prices of aluminum and other metals have shot upwards in price in recent weeks as a result of Russia's invasion of Ukraine. Alcoa has returned 181.8% in the past year.
Devon Energy Corporation (DVN)
Devon Energy Corporation (DVN) is an oil and gas exploration, development, and production company. The company also transports oil, gas, and related products and processes natural gas. It has provided one-year trailing total returns of 168.2%.
What are the top-performing mid-cap stocks?
The top-performing mid-cap stocks, based on one-year trailing total returns as of April 4, 2022, are CAR, AR, RRC, AA, and DVN.
What do the top-performing mid-cap stocks have in common?
The best-performing mid-cap stocks have achieved strong returns for different reasons. In some cases, these companies may have benefited from a large-scale shift away from Russian oil, gas, and materials following U.S. and international sanctions after Russia began an invasion of Ukraine.
What's the best way to invest in mid-cap stocks?
Investors may wish to invest in individual mid-cap stocks, but they may also find that a broad or thematically-focused mid-cap stock exchange-traded fund (ETF) heightens diversity while reducing risk.
The Bottom Line
Mid-cap stocks are often overlooked, but the names above have all provided significant returns in the past year. Investors interested in diversifying their portfolio by adding mid-cap stocks may wish to look to a dedicated 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) are an effective way to accomplish this. There are also thematic mid-cap funds for investors looking for a more specialized vehicle. Investopedia's top mid-cap ETFs list is a good place to begin a search.