By - Kiran Murali
- Mid-cap stocks are companies with a market capitalization of US$2 billion to US$10 billion.
- They often show growth potential but need to be carefully studied from investment viewpoint.
- The non-tech mid-cap companies may also be worth exploring as the global economy rebounds.
Mid-cap stocks are companies having a market cap of 2 billion to 10 billion. These companies often show growth potential but need to be carefully studied for their financials, performance, and business plan before making any investment decision. In addition, there are many non-technology companies in the mid-cap category that are easy to overlook in the flooding of technology startups.
Here we discuss seven companies worth exploring in July.
National Beverage Corp. (NASDAQ: FIZZ) is a non-alcoholic beverage company in the United States. Its portfolio includes sparkling waters, energy drinks, juices, and carbonated soft drinks. It has imaginative flavor, creative product designs and innovative packaging as its strengths.
Its market capitalization is US$4.24 billion, and its P/E ratio is 24.44.
Its quarter ended May 1 also marked the end of its FY 2021. The company’s sales for FY 2021 were US$1.07 billion compared to US$1.0 billion in FY 2020. Its net income was US$174.15 million for FY 2021 compared to US$129.97 million, reflecting a growth of 34% year over year.
The stock has grown nearly 42% in one year. The stock closed at US$44.86 on July 1, 2021.
Tempur Sealy International, Inc. (NYSE: TPX) is one of the largest bedding providers globally. It aims to improve the sleep of more people every night, considering the importance of good health. Its award-winning products and industry-leading innovation attracted consumers in more than 100 countries.
Its market capitalization is US$8.34 billion, and its P/E ratio is 21.46.
For the quarter ended March 31, 2021, it reported net sales of US$1.04 billion compared to US$822.4 million for the same quarter a year ago. The company’s net income attributable to common shareholders was US$130.5 million compared to US$59.7 million in the March quarter of the previous year, showing 119% growth. TPX share rose 126% in one year at the closing price of US$41.52 on July 1, 2021.
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Acuity Brands, Inc. (NYSE: AYI) is an industrial technology company engaged in developing and manufacturing products & services such as lighting, lighting controls, location-aware applications and building management systems for commercial, industrial, institutional, and residential applications.
Its market capitalization is US$6.37 billion, and its P/E ratio is 23.64.
For the quarter ended May 31, 2021, revenue is US$899.7 million compared to US$776.2 million for the corresponding period a year ago. The company’s net income is US$85.7 million for the quarter compared to US$60.4 million in the May quarter the previous year, reflecting a growth of 42% year over year. Its stock price grew 87% in one year at the closing price of US$176.26 on July 1, 2021.
Donaldson Company, Inc. (NYSE: DCI) and its subsidiaries make pollution control equipment. They are engaged in manufacturing filtration systems and replacement parts across the world. Its leading filtration technology and strong customer loyalty are its top strength.
Its market capitalization is US$8.0 billion, and its P/E ratio is 30.9.
DCI’s revenue for the quarter ended April 30, 2021, was US$765 million compared to US$629.7 million in the same quarter of 2020. It booked a net income of US$84.4 million in the April quarter compared to US$63.4 million corresponding quarter a year ago, reflecting a 33% growth year over year.
The company’s stock rose nearly 37% in one year. It closed at US$64.03 on July 01, 2021.
AMC Networks Inc. (NASDAQ: AMCX) is a global entertainment company. It owns and operates targeted video entertainment products at varied platforms such as linear TV channels, streaming services, and other social media platforms.
Its market capitalization is US$2.8 billion, and its P/E ratio is 12.06.
AMC’s revenue for the quarter ended March 31, 2021, was US$691 million compared to US$734 million in the same quarter the previous year, reflecting a decrease of nearly 6%. Its net income for the same quarter was US$87 million compared to US$68.7 million in March quarter, 2021. While its revenue decreased nearly 6%, its net income increased nearly 27% year over year, probably due to reduced miscellaneous expenses.
Its stock price grew 185% in one year considering its closing price of US$65.99 on July 1, 2021.
Alcoa Corporation (NYSE: AA) is engaged in bauxite, alumina, and aluminum production. Its bauxite and alumina segments consist of a series of affiliated operating entities, and the aluminum segment consists of smelting, casting, and rolling businesses.
It has a market capitalization of US$ 7.09 billion, and forward P/E 1 year is 7.65.
Revenue of the company for the quarter ended March 31, 2021, was US$2.87 billion in comparison with US$2.38 billion in the same quarter the previous year. Its net income applicable to common shareholders was US$175 million in the March quarter of 2021, a 119% increase from the same period a year ago. Its cash and cash equivalent also increased to US$2.57 billion sequentially from the previous quarter of US$1.65 billion.
AA’s share grew 237% in the last year at the close of US$36.96 on July 1, 2021.
BlackLine, Inc. (NASDAQ: BL) was founded in 2001. BlackLine is a financial and accounting software technology company. It provides software for financial workflows and accounting, including account reconciliation, intercompany accounting, financial close and control assurance. Its market capitalization is US$ 6.6 billion.
Its revenue for the quarter ended March 31, 2021, was US$ 98.86 million compared to US$ 82.60 million for the March quarter in 2020. However, it incurred a net loss of US$ 38.96 million in this quarter compared to US$ 12.84 in the previous year corresponding quarter. The reason for the increase in loss could be pointed to higher operating and interest expenses.
The share price grew 27% in around one year. The stock closed at US$ 111.82 on July 01, 2021.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.