4 Mid-Caps Ready to Soar as Markets Attempt Another ATH After CPI Report
Last year and in 2024, the media has mainly focused on big companies that grab most of the headlines. But there's more to the stock market than just these giants.
Today, I want to introduce you to a set of stocks from the S&P Midcap 400. This index consists of 400 mid-sized companies.
Mid-cap companies fall in the range of market cap between $2 billion and $10 billion.
According to data available from 1994 to 2020, it has outperformed both the S&P 500 and the S&P 600.
And here we can see the most recent comparison between the S&P 500 and the S&P 400.
The S&P 500 has a more intense concentration of stocks compared to the S&P 400.
Nvidia (NASDAQ:NVDA)'s market value makes up almost 5% of the S&P 500. Currently, the top 10 stocks contribute to 33% of the index's total market value, which is higher than the 27% observed during the peak of the tech bubble in 2000.
Now, let's explore some intriguing stocks in the S&P 400 MidCap. I'll utilize InvestingPro to gather essential information and data about these companies.
Super Micro Computer (NASDAQ:SMCI) is a technology company specializing in high-end servers, networking devices, and workstations. The company was incorporated in 1993 and is based in San Jose, California.
On April 30 we will know its accounts. Earnings per share (EPS) are expected to increase by +146.22% and revenue by +104%.
Source: InvestingPro
Super Micro is experiencing accelerating revenue and, in particular, earnings growth as demand for its servers and computing solutions expands rapidly. It has been growing earnings at an average annual rate of +53% in recent years.
Note also the operating leverage that is contributing to margin expansion and rapidly accelerating earnings per share.
The market knows its
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