Mid Cap Stocks Do Not Have To Be Boring
What Are Mid Cap Stocks?
Mid cap stocks are often overlooked because they do not have the innate excitement that particularly low-priced stocks and high-priced stocks may possess. The large cap stocks draw a lot of attention because they are generally very successful stocks that have been around for a long time. They have proven themselves. There is little concern that they are going to lose a lot of money.
Conversely, small cap stocks are often very exciting. They are mostly companies that are relatively new to the market or that are recovering from some disaster that brought their market capitalization low. These stocks are cheaper to buy and you can get many shares. This also adds some attraction to them.
Mid cap stocks hold the middle ground. Their total market capitalization is somewhere between one billion dollars and $5 billion. These stocks typically represent companies that have been around for a while and have seen success. However, they are not as successful as those who have broken into the large cap category that begins after $5 billion in market capitalization has been reached.
However, a growing number of analysts think of mid cap stocks as the sweet spot for investment. This appears to be particularly true during this period of slow growth. Often, successful mid caps become profitable targets for larger firms that are looking to adjust to the turbulence in the market and in the economy.
Some Mid Cap Stocks for 2012
• Mindray Medical International Limited
It is not surprising that a medical company is among the success stories. Health care shows no signs of slowing down its growth in importance. Mindray makes instruments and supplies for this industry.
• Align Technology Inc.
This is another medical technology company moving up in the world. Their focus is on manufacturing the increasingly advanced equipment used in hospitals and other health care settings.
• American Eagle Outfitters, Inc.
This is a mid cap stock issued by an apparel store. They have more than $4 billion in market capitalization and are threatening to break into large cap territory.
• Total System Services
They handle electronic payment services for businesses. This industry is growing fast.
There are many other success stories among the mid caps. These are great inclusions in any portfolio for their stability and their potential growth. If you want to know more about some mid cap stocks for this year, ask any broker for more information.