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Highlights
- Mid-cap stocks offer higher growth prospects and are financially more stable than small-cap stocks.
- Mainfreight’s NZ head to seek departure early next year.
- Trustpower posts solid HY2022 performance; will distribute 17.0 cps as a dividend.
As the name indicates, mid-cap stocks fall between small-cap and large-cap stocks and have a market capitalisation between NZ$2 billion to NZ$10 billion.
There has been a growing rage among investors to invest in these mid-cap companies as they are less risky and volatile than small-cap companies and at the same time, offer higher growth prospects when compared to large-cap companies.
With this backdrop, let’s take a look at the five popular NZX-listed mid-cap stocks worth investing in 2022.
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Mainfreight Limited (NZX:MFT)
Mainfreight Limited is a famous name in New Zealand’s supply chain logistics space. Recently, the Company witnessed the resignation of Craig Evans, MFT’s NZ head.
Interesting Read: What does Mainfreight (NZX:MFT) do? Is it based in NZ?
He would step down by January-end and the Company would announce the successor shortly.
On 10 November, shares of Mainfreight fell 1.60% at NZ$88.560, at the time of writing.
Spark New Zealand Limited (NZX:SPK; ASX:SPK)
The country’s leading telecom company is Spark New Zealand Limited. A few days ago, the Company had organised its Annual Meeting, wherein its shareholders passed resolutions to re-elect retiring directors, David Havercroft and Alison Barrass.
Related Read: 5 NZX stocks with a healthy dividend yield
Further, its Board was authorised to determine SPK auditor’s remuneration.
At the time of writing, Spark New Zealand rose 0.44% at NZ$4.560, on 10 November.
Ryman Healthcare Limited (NZX:RYM)
Being a pioneer in retirement living, Ryman Healthcare Limited has revealed purchasing additional land so as to extend its two existing Victorian sites.
Must Read: Are these 5 NZX mid-cap aiming to become large-cap stocks?
The said purchases are of strategic importance to RYM’s growth plans as there is a huge demand in the Victorian market for aged retirement living.
At the time of writing, Ryman Healthcare declined 2.93% to NZ$14.270, on 10 November.
Trustpower Limited (NZX:TPW)
NZ’s leading power company, Trustpower Limited, has recently released its HY2022 performance, wherein it posted a solid growth underpinned by fair value gain on financial instruments as well as sound management policies.
Both its NPAT of NZ$115.1 million as well as total operating earnings of NZ$122.2 million grew tremendously by 243% and 11%, respectively.
Also Read: Would 5 NZX dividend stocks prove resilient during market crash?
Hence, TPW would reward its shareholders by paying them an interim dividend of 17.0 cps on 3 December.
Further, considering the electricity demand to grow, it anticipates its FY22 earnings between NZ$210 million-NZ$225 million.
Shares of Trustpower were down 0.67% at NZ$7.440, on 10 November, at the time of writing.
AMP Limited (NZX:AMP; ASX:AMP)
AMP Limited is a financial services company operating across New Zealand and Australia. It has disclosed that the famous credit rating agency, Moody’s, had downgraded its rating from Baa2 to Baa3 on AMP Group Holdings Limited and AMP Group Finance Services Limited.
The said move was taken owing to AMP’s smaller capital and earnings base post the demerger of its Private Markets business.
Related Read: AMP (NZX:AMP): Q3 2021 AUM and cashflows update
Despite this, AMP maintains a strong balance sheet and capital position.
On 10 November, AMP declined 0.82% at NZ$1.210, at the time of writing.
Bottom Line
Mid-cap stocks are equipped with huge hidden growth opportunities to be uncovered and they also provide a good diversification option to one’s investment portfolio.