5 mid-cap stocks to explore in August: LNTH, NEX, AMR, WWE & MUSA

By - Rupam Roy


  • Lantheus Holdings Inc. (NYSE: LNTH) reported a revenue of US$223.7 million in Q2 FY22.
  • NexTier Oilfield Solutions Inc.'s (NYSE: NEX) revenue soared 189 per cent YoY in Q2 FY22.
  • World Wrestling Entertainment's revenue rose 27 per cent YoY in Q1 FY22.

Mid-cap companies Lantheus Holdings Inc. (NYSE: LNTH), NexTier Oilfield Solutions Inc. (NYSE: NEX), Alpha Metallurgical Resources, Inc. (NYSE: AMR), World Wrestling Entertainment, Inc. (NYSE: WWE), and Murphy USA Inc. (NYSE: MUSA) are among the major players in their respective sectors.

While many investors look for well-established and big names from a myriad of sectors, some explore opportunities in the small and fast-growing enterprises as they generally assure stable growth.

However, some investors want to explore opportunities in another equity market segment, the mid-cap stocks. These stocks are neither too big nor too small. They can be described as a combination of both large-cap and small-cap stocks, comprising of growth and profitability both.

The market cap or market valuations of the mid-cap stocks ranges between US$2 billion and US$10 billion. They are primarily firms that have improved from their small-cap level and operate on a stable and profitable market side.

They also have a combination of the performance nature of both the small-cap and large-cap stocks. While the small-cap stocks tend to be highly volatile due to their fast-growing nature, and the large-cap stocks are relatively slow-growing, the mid-cap stocks fall in between them.

Kalkine Media explores some of the mid-cap stocks with sizeable year-to-date (YTD) returns. Let's look at them:

Lantheus Holdings Inc. (NYSE: LNTH)

The targeted therapeutics and artificial intelligence (AI) solution provider, Lantheus Holdings, has a market cap of US$ 5.18 billion. LNTH stock witnessed a growth of around 161 per cent this year. It increased by over 184 per cent year-over-year (YoY). In the latest quarter, it returned gains of over 14 per cent.

Lantheus reported a revenue of US$223.7 million in the second quarter of fiscal 2022, an increase of 121.4 per cent from the same quarter of the previous year. 

On a GAAP basis, its net income totalled US$43.1 million or US$0.61 per diluted share in Q2 FY22 versus a loss of US$26.7 million or a fully diluted loss of US$0.39 per share in Q2 FY21.

Shares of the Billerica, Massachusetts-based company saw a 52-week gain of US$78.17 on July 28, 2022, and a 52-week low of US$22.20 on October 15, 2021.

NexTier Oilfield Solutions Inc. (NYSE: NEX)

The US$2.13 billion market cap company announced that it had entered and closed a definitive agreement with Continental Intermodal Group LP, under which it would acquire all assets of the safety-focused technology-drive logistics firm.

NexTier primarily focuses on offering oilfield services like drilling. In addition, it also engages in developing, delivering, and managing engineering activities in oilfield services.

The Houston, Texas-based firm reported a revenue of US$842.9 million in the second quarter of fiscal 2022. Its revenue in the latest quarter saw a sequential surge of 33 per cent while increasing 189 per cent from the previous year's second quarter.

Its net income improved to US$68.5 million or US$0.27 per diluted share in Q2 FY22 against US$8.8 million or US$0.04 per diluted share in the previous quarter. In Q2 FY21, NexTier reported a net loss of US$31.8 million.

NEX stock rose about 145 per cent year-to-date (YTD) while increasing about 126 per cent annually. Its Relative Strength Index or RSI was about 45, according to Refinitiv data.

RSI between 30-50 indicates that the stock could be in a highly volatile condition now.

Alpha Metallurgical Resources, Inc. (NYSE: AMR)

The coal mining and supplier Alpha Metallurgical Resources has a dividend yield of 1.11 per cent. Its annualized dividend is US$1.50. The division of the annual income from any investment by the asset's current price is the asset's dividend yield.

AMR stock returned gains of about 118 per cent this year while rocketing about 373 per cent over the last 12 months. In the current quarter, it has gained about three per cent.

The US$2.51 billion market cap firm had an RSI of about 47, as per Refinitiv data. The company posted total revenue of US$1.07 billion in Q1 FY22, a notable increase from US$386.25 million in the year-ago quarter.

The Bristol, Tennessee-based firm's net income was US$400.89 million or US$20.52 per diluted share in Q1 FY22 versus a loss of US$32.92 million or US$1.79 per diluted share in Q1 FY21.

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World Wrestling Entertainment, Inc. (NYSE: WWE)

The US$5.28 billion market cap firm has a dividend yield of 0.68 per cent, while its annualized dividend is US$ 0.48. The WWE stock showed gains of about 44 per cent YTD while soaring over 46 per cent in one year. On a quarter-to-date (QTD) basis, it added about 14 per cent.

The professional wrestling and entertainment firm was recently in the news after its Chairman and Chief Executive Officer, Vince McMahon, retired in July 2022. The company has appointed Stephanie McMahon and Nick Khan as co-CEOs. Ms McMahon has also been appointed as the Chairwoman of the Board.

The board of directors of the Stamford, Connecticut-based firm declared a regular quarterly dividend of US$0.12 per share for all Class A and Class B of its common stock on July 28. The dividend would be payable on September 15, 2022.

In the first quarter of fiscal 2022, the company gained a 27 per cent surge in its revenue of US$333.4 million. World Wrestling Entertainment's net income was US$66.1 million or US$0.77 per diluted share in Q1 FY22, comparatively up from US$43.8 million or US$0.51 per diluted share in Q1 FY21.

Murphy USA Inc. (NYSE: MUSA)

The MUSA stock rose over 43 per cent in 2022 while gaining 89.63 per cent in the last 12 months.

The retail gas station operator has a dividend yield of 0.43 per cent, while its annualized dividend is US$1.24. The US$ 6.95 billion market cap firm reported total operating revenue of US$6.76 billion in Q2 FY22, up from US$4.45 billion in the year-ago quarter.

Its net income was US$183.3 million or US$7.53 per diluted share in the fiscal 2022 second quarter, relatively up from US$128.8 million or US$4.79 per diluted share in Q2 FY21.

Bottom line:

The highly volatile condition of the market in recent days due to the soaring inflation, rate hike fears, and cooling down of the economy have forced several investors to stay from risk-bet investments. Mid-cap stocks are generally less volatile, but investors should consider the uncertainties before investing in the equity market.

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