- Mid-cap stocks may be more vulnerable to volatile market situations than large-cap ones.
- However, with risk comes reward and some Canadian mid-cap stocks saw their stock prices rise well in the past year.
- A mid-cap stock mentioned here rocketed by almost 165 per cent in the past year.
Mid-cap stocks may be more vulnerable to volatile market situations than large caps. However, with risk comes reward. Some Canadian mid-cap stocks saw their stock prices rise well in the past year.
Here we discuss five Canadian mid-cap stocks that performed well in the past year despite pandemic setbacks and challenging economic conditions.
1. Aritzia Inc (TSX:ATZ)
Aritzia Inc posted net revenue of C$ 350.1 million in the second quarter of fiscal 2022, up 74.9 per cent from the previous year.
With a return on equity (ROE) of 28.97 per cent, the Vancouver-based fashion brands company saw its scrip close at C$ 51.15 apiece on Wednesday, January 5. This stock climbed over 106 per cent in the last year.
2. ATS Automation Tooling Systems Inc (TSX:ATA)
ATS Automation Tooling Systems Inc earned a revenue of C$ 522.1 million in Q2 FY2022, marking a year-over-year (YoY) surge of 55.6 per cent. On a year-to-date (YTD) basis, the automation system manufacturer posted C$ 1.14 billion of order bookings in the latest quarter, up from C$ 728 million in Q2 2021.
The ATA stock closed at C$ 50.09 apiece on January 5 and returned about 120 per cent in the past 12 months.
3. Converge Technology Solutions Corp (TSX:CTS)
Converge Technology Solutions Corp saw a YoY surge of 93 per cent in its third-quarter revenue in FY2021, which was C$ 367.3 million.
Stocks of the software company, which had a price-to-earnings ratio of 180.50, closed at C$ 10.45 apiece on January 5 and grew by almost 104 per cent in the last year.
4. MEG Energy Corp (TSX:MEG)
The in-situ oil sands company MEG Energy posted an adjusted funds flow of C$ 239 million in Q3 FY2021. The oil production company reported an average bitumen production of 91,506 barrels per day (bbls/d) in the latest quarter.
Scrips of this energy producer closed at C$ 12.45 apiece on January 5. MEG scrip rocketed by almost 165 per cent in the past year.
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5. Stantec Inc (TSX:STN)
On December 8, 2021, Stantec acquired Cardno Limited, an engineering and consultancy company in North America and Asia Pacific, to strategically expand its environmental services and infrastructure operations.
Stantec posted net revenue of C$ 932.9 million in Q3 FY2021 compared to C$ 916.5 million a year ago.
Stocks of Stantec closed at C$ 70.12 on January 5 and swelled by over 70 per cent YoY.
Mid-cap stocks may offer better returns than large-cap stocks if the company is fundamentally sound and growing with the market’s dynamics. And so, much research is merited before investment.
Also read: Top 5 TSX stocks under $1 to buy in 2022