ZIM to RRC: Top 5 mid-cap stocks to watch amid disruptive trends

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ZIM to RRC: Top 5 mid-cap stocks to watch amid disruptive trends

 ZIM to RRC: Top 5 mid-cap stocks to watch amid disruptive trends
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Highlights

  • ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is a marine transportation company. Its current dividend yield is 12.69%.
  • Dillard's, Inc. (DDS) is a specialty store retailer for fashion apparel, cosmetics, and home furnishings. Its dividend yield is 0.3%, and the annualized dividend is US$0.80.
  • Range Resources Corporation (NYSE: RRC) is an independent exploration and production company. It has a P/E ratio of 17.15 and a forward P/E ratio for one year of 7.42.

Mid-cap stocks are companies with a market capitalization of between US$3 billion and US$10 billion. These stocks are considered risky in comparison to large-cap bluechip stocks. They are growing companies with considerable investments in the market, and their innovation and business acumen will determine their success against the bigger rivals in the market. But whether to go for mid-cap stocks is up to the investor’s risk appetite.

The following are five such companies worth exploring amid the market turbulence.

 ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)

Closing price on March 14, 2022: US$82.54

Price range in last one year: US$83.88 to US$22.68

ZIM Integrated Shipping Services Ltd is an Israel-based marine transportation company.

The company offers tailored services, including specialized shipping solutions, “out-of-gauge” cargo transportation, refrigerated cargo, hazardous cargo, and land transport and logistical services to clients. Most of its revenue comes from the Pacific region.

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The company carried 3,481 thousand TEUs (Twenty Equipment Unit or 20-foot container) in 2021 compared to 2,841 thousand TEUs in 2020.

For the year ended December 31, 2021, its revenue from voyages and related services was US$10.72 billion compared to US$3.99 billion in fiscal 2020.  

It booked a net income of US$4.65 billion or US$39.02 per diluted share compared to US$0.524 billion or US$4.96 per diluted share in the previous fiscal year.

The company has a market capitalization of US$9.88 billion. Its dividend yield is 12.69%, and its annualized dividend is US$68.00.

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Dillard's, Inc. (DDS)

Closing price on March 14, 2022: US$259.98

Price range in last one year: US$416.71 to US$83.62

Little Rock, Arkansas based Dillard's Inc is a specialty store retailer for fashion apparel, cosmetics, and home furnishings. Dillard’s also operates CDI Contractors, a general contracting construction company for constructing and remodeling stores for Dillard’s. 

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For the fiscal year ended January 29, 2022, the company’s total retail sales increased by 53% YoY. The comparable retail sales grew 8% compared to fiscal 2019. The net sales were US$6.49 billion for fiscal 2022 compared to US$4.30 billion in the previous fiscal year.

 The net income came in at US$862.5 million or US$41.88 per diluted share compared to a net loss of US$71.7 million or US$3.16 per diluted share in FY 2020.

Last month, the company announced a US$500-million share repurchase program and declared a dividend of US$0.20 per share.

The company has a market capitalization of US$5.76 billion. Its dividend yield is 0.3%, and its annualized dividend is US$0.80.

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Lantheus Holdings, Inc. (NASDAQ: LNTH)

Closing price on March 14, 2022: US$49.87

Price range in last one year: US$56.19 to US$19.14

Lantheus Holdings Inc is a healthcare company based in North Billerica, Massachusetts. It develops diagnostic products, targeted therapeutics, and artificial intelligence solutions that help clinicians diagnose and treat various diseases. 

In fiscal 2021, the company booked a net loss of US$71.28 million or US$1.06 per diluted share compared to a net loss of US$13.47 million or US$0.25 per diluted share in fiscal 2020. The revenue of the company was US$425 million in FY2021 compared to US$339 million in FY2020.

LNTH has a market capitalization of US$3.39 billion. Its forward PE for one year is 26.04.

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Antero Resources Corporation (NYSE: AR)

Closing price on March 14, 2022: US$25.34

Price range in last one year: US$27.31 to US$8.64

The energy company Antero Resources is engaged in exploring and producing natural gas and natural gas liquids in the US and Canada. The company is located in Denver, Colorado. 

The company earned revenue of US$4.6 billion in the fiscal year ended December 31, 2021, compared to US$3.49 billion in the previous fiscal year.

 It incurred a net loss of US$186.9 million or US$0.61 per diluted share in FY2021 versus a net loss of US$1,267.9 million or US$4.65 per diluted share in fiscal 2020.

The company has a market capitalization of US$7.97 billion and a forward P/E for one year of 7.87.

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Source: Pixabay

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Range Resources Corporation (NYSE: RRC)

Closing price on March 14, 2022: US$25.56

Price range in last one year: US$28.36 to US$8.47

Fort Worth, Texas-based Range Resources is an independent oil and gas exploration and production company. Its main operations are in Marcellus Shale in Pennsylvania. 

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The company booked a net income of US$411.8 million or US$1.61 per common share diluted in fiscal 2021 compared to a net loss of US$711.8 million or US$2.95 per common share diluted a year ago.

 The net income improved due to lower property impairment charges and higher realized prices. Its revenue increased to US$2.9 billion in FY 2021 from US$1.97 billion in fiscal 2020.

The company has a market capitalization of US$6.7 billion. It has a P/E ratio of 17.15 and a forward P/E ratio for one year of 7.42.

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Bottomline

The S&P 400 Mid Cap Index fell 9.45% YTD, while the benchmark S&P 500 Index declined 11.42% YTD. It shows the mid cap index did better than the benchmark despite the market turbulence. However, investors should exercise due diligence before investing in stocks.

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