Would these 2 NZX mid-caps provide stability to one’s portfolio?

Highlights

• Mid-caps are those firms which are in the middle of their growth curve.
• Mainfreight delivered a revenue of $2.22 billion for a period of 22 weeks.
• Summerset registered strong sales numbers in Q3 2021.
  

Mid-cap stocks designate companies that have a market cap ranging between $2 billion and $10 billion. These stocks fall between the large-cap and small-cap categories and vary in terms of returns and risks. They are relatively less risky than small caps as they are in a growing stage but are riskier than large caps.

A mid-cap company can be attractive to investors as it is anticipated to grow and increase its market share, profits as well as productivity. These firms can be valuable in providing portfolio diversification offering a balance of progress and stability.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

Let’s have a look at the performance of these 2 NZX mid-cap stocks.

Mainfreight Limited (NZX:MFT)

Mainfreight is a global logistics supplier offering warehousing and freight forwarding services. The firm has a market cap of $8.93 billion.

The Company provided a trading update for the 22 weeks (1 April 2021 to 31 July 2021) and weekly financials for August, revealing its performance amid ongoing COVID-19 uncertainties.

RELATED READ: How are 3 NZX transport stocks faring in Q4 2021?

Mainfreight delivered a revenue of $2.22 billion this year with trading across all regions continuing to be ahead of previous year.

COVID-19 restrictions have led to a lower-than-expected reduction in income while trade in Australia was unaffected. Post level 4 lockdown in NZ, domestic transport trading saw a 30% drop in income due to lockdowns, warehouse activity has remained unchanged with previous weeks, and MFT's services remain in high demand in the Air & Ocean segment.                                                                                 

ALSO READ: What is Mainfreight’s global supply chain status?

MFT recently announced the resignation of Craig Evans, MFT’s NZ operations leader, by the end of January 2022.

Shares of Mainfreight gained 1.47% in trading on Friday to close at $89.9. 

Summerset Group Holdings Limited (NZX:SUM, ASX:SNZ)

Summerset is the retirement village operator in NZ and has a market cap of $3.37 billion.

The Group reported 199 sales that comprised 117 new sales and 82 resales for the quarter ended 30 September 2021.

RELATED READ: Summerset (NZX:SUM) How did it perform in 3Q 2021 amid lockdown?

Summerset CEO Scott Scoullar stated that the Group achieved strong Q3 sales and resale numbers with 744 sales attained in the 9 months to 30 September 2021. The sales growth has continued despite a lockdown in NZ in August and the present lockdown in Auckland, he added.

Moreover, construction work has re-started across 13 building sites all over the country.

Shares of Summerset gained 0.9% in trading on Friday to close at $14.51.

Bottom Line

Investing in midcaps depends on an investor’s goals and risk acceptance.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)