Latest news with #midcap
Yahoo
a day ago
- Business
- Yahoo
Is Now An Opportune Moment To Examine RadNet, Inc. (NASDAQ:RDNT)?
RadNet, Inc. (NASDAQ:RDNT), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$61.14 and falling to the lows of US$51.03. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether RadNet's current trading price of US$54.69 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at RadNet's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is RadNet Worth? The stock seems fairly valued at the moment according to our valuation model. It's trading around 16% below our intrinsic value, which means if you buy RadNet today, you'd be paying a fair price for it. And if you believe that the stock is really worth $65.29, then there isn't much room for the share price grow beyond what it's currently trading. So, is there another chance to buy low in the future? Given that RadNet's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for RadNet What does the future of RadNet look like? Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of RadNet, it is expected to deliver a relatively unexciting top-line growth of 7.0% over the next year, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term. What This Means For You Are you a shareholder? RDNT's future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on RDNT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 1 warning sign for RadNet and we think they deserve your attention. If you are no longer interested in RadNet, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Forbes
3 days ago
- Business
- Forbes
Mid-Caps: The Market's Overlooked Sweet Spot
Large capitalization stocks are all the rage nowadays. And small-caps often have their day, too. But these two unjustly overshadow mid-caps, which can do very well. Tyra Pratt, portfolio manager at Jensen Investment Management in Lake Oswego, Ore., outlines this opportunity, which too many investors miss: Larry Light: A lot of people view mid-cap stocks standing in a waiting room, poised to either rise to large-caps or descend to small-caps. And thus they are not that important. Is this perception fair and accurate? Tyra Pratt: That view is increasingly outdated. While mid-caps were once seen as transitional, on their way to becoming large-caps or falling back to small, they've matured into a distinct and important part of the market. Many are now clear leaders in their industries, with established operations and solid financials, yet they still get treated as if they're stuck in between. Light: So, what makes mid-cap stocks unique compared to small- and large-caps today? Pratt: They really offer a balance. Unlike small-caps, mid-sized companies tend to have more stable earnings and experienced management teams. At the same time, they're not so large that they lose flexibility. That agility can be a huge advantage, especially when markets are shifting or when companies need to adapt quickly to new opportunities or risks. Light: Are there any recent numbers that show how mid-caps have been performing? Pratt: Absolutely. In the last quarter of 2024, mid-caps posted year-over-year earnings growth of 5%, compared to just 14% for large-caps. That kind of outperformance doesn't often make headlines, but it speaks to the strength and momentum happening in the mid-cap space right now. Light: How should investors think about size when defining mid-caps? Has that changed? Pratt: It has. Historically, mid-caps were companies with market values between $2 billion and $10 billion. But the benchmarks have shifted. The Russell Midcap Index now stretches up to $34 billion, and many strategies, including ours, average well above $20 billion. So, if you're still working from decade-old definitions, you might be missing companies that look, act, and perform like large-caps but still sit in that mid-cap bucket. Light: Some investors worry mid-caps are more vulnerable to market volatility. Is that concern justified? Pratt: It depends on the company. Mid-caps that are grounded in U.S. consumer or business demand can be surprisingly resilient, sometimes more so than their global peers. They often have less exposure to geopolitical risks like tariffs or international supply chain disruptions. That domestic orientation can help insulate them during periods of global uncertainty. Light: You've emphasized the importance of quality. What exactly does "quality" mean in the mid-cap space? Pratt: We consider quality companies to be those with strong free cash flow, low leverage, durable competitive advantages and experienced leadership. Over the past decade, high-quality mid-cap companies, A- or better per Standard & Poor's, have meaningfully outperformed lower-rated peers across short-, medium- and long-term horizons. So quality isn't just a buzzword. It's a major performance driver. Light: Can you share examples of companies that reflect that mid-cap quality and adaptability? Pratt: Sure. Encompass Health has established a dominant position in a focused corner of the healthcare market, as the largest U.S. provider of freestanding inpatient rehabilitation facilities. It blends scale with operational agility, allowing it to innovate and adapt quickly in response to secular growth trends like an aging population. Tractor Supply has built deep loyalty in rural markets by leveraging customer knowledge and tailoring strategy to local needs, an approach that's difficult for larger, generalist retailers to replicate or out-adapt. And F5 Networks, an under the radar technology company with a leading position in application delivery controllers, or ADCs, which direct web request traffic to avoid overloading servers. The company has a strong competitive advantage in addressing secular trends such as artificial intelligence, datacenter, cybersecurity, cloud migration, e-commerce and high customer switching costs. F5 possesses solid market share, a strong brand and a pristine balance sheet. Light: It sounds like these companies succeed not by being the biggest, but by being the most focused? Pratt: That's exactly right. Their advantage often lies in execution, not sheer size. They know their markets, move quickly, and aren't weighed down by overly complex operations. That kind of focus can be just as powerful as scale, sometimes even more so. Light: Any final thoughts for investors still hesitant about allocating to mid-caps? Pratt: I'd encourage them to reconsider how they view mid-caps. These companies aren't just filler between small and large. They can be foundational holdings. With the right approach, mid-caps can bring balance, diversification, and resilience to a portfolio. And as the market evolves, ignoring them could mean missing out on some of the most compelling opportunities out there.
Yahoo
30-07-2025
- Business
- Yahoo
The London Company Mid Cap Portfolio Sold Skyworks Solutions (SWKS) in Q2. Here's Why
The London Company, an investment management company, released 'The London Company Mid Cap Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities saw a double-digit surge in the second quarter following a sharp decline in the first quarter. The mid-cap composite rose 5.7% (5.5% net) in the second quarter, falling short of the Russell Midcap Index's 8.5% increase. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Skyworks Solutions, Inc. (NASDAQ:SWKS). Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures semiconductor products. The one-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was -7.98%, and its shares lost 36.68% of their value over the last 52 weeks. On July 29, 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $71.94 per share, with a market capitalization of $10.8 billion. The London Company Mid Cap Strategy stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its second quarter 2025 investor letter: "Exited: Skyworks Solutions, Inc. (NASDAQ:SWKS) – Sold remaining position reflecting greater competition, client concentration, and recent management changes. We first purchased SWKS in late 2018. Shares of SWKS did well in the early years of our holding period, but the stock underperformed the broader market in recent years. While it is frustrating to sell on weakness, the recent loss of exclusivity on an iPhone 17 component with Apple highlights a significant risk to the firm. Apple represents over 60% of revenue to SWKS, so any change in the relationship is meaningful. This is the second loss of a component used in iPhones in recent years and is a sign of greater competition from large players like Qualcomm and Broadcom. SWKS also recently fired their CEO, which is another risk in the future. We decided to sell based on these concerns." A technician using a specialized tool to mount a wireless analog system on chip. Skyworks Solutions, Inc. (NASDAQ:SWKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Skyworks Solutions, Inc. (NASDAQ:SWKS) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the potential of Skyworks Solutions, Inc. (NASDAQ:SWKS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Skyworks Solutions, Inc. (NASDAQ:SWKS) and shared the list of most oversold semiconductor stocks so far in 2025. Skyworks Solutions, Inc. (NASDAQ:SWKS) detracted from The London Company Mid Cap Strategy's performance in Q1 2025 due to a major shift in its relationship with Apple. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Dollar Tree (DLTR) Rose Following the Divestiture
The London Company, an investment management company, released 'The London Company Mid Cap Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities saw a double-digit surge in the second quarter following a sharp decline in the first quarter. The mid-cap composite rose 5.7% (5.5% net) in the second quarter, falling short of the Russell Midcap Index's 8.5% increase. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Dollar Tree, Inc. (NASDAQ:DLTR). Dollar Tree, Inc. (NASDAQ:DLTR) is a discount retailer. The one-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was 11.63%, and its shares gained 10.21% of their value over the last 52 weeks. On July 29, 2025, Dollar Tree, Inc. (NASDAQ:DLTR) closed at $114.99 per share, with a market capitalization of $23.998 billion. The London Company Mid Cap Strategy stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its second quarter 2025 investor letter: "Dollar Tree, Inc. (NASDAQ:DLTR) – DLTR was a top performer after it reached an agreement in March to sell its underperforming Family Dollar business, a decade-long drag on growth and margins. This divestiture has driven a stock re-rating, reflecting a higher-quality company focused on value creation at the Dollar Tree banner. The recent elimination of the de minimis exemption has yielded positive sentiment towards retailers like DLTR. We remain attracted to its pricing flexibility and margin enhancement opportunity. A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items. Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the first quarter, which was 64 in the previous quarter. While we acknowledge the potential of Dollar Tree, Inc. (NASDAQ:DLTR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Dollar Tree, Inc. (NASDAQ:DLTR) and shared the list of defensive stocks billionaires are buying amid US trade tariff uncertainty. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
At AU$2.88, Is Cleanaway Waste Management Limited (ASX:CWY) Worth Looking At Closely?
Cleanaway Waste Management Limited (ASX:CWY), is not the largest company out there, but it saw a decent share price growth of 13% on the ASX over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's examine Cleanaway Waste Management's valuation and outlook in more detail to determine if there's still a bargain opportunity. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What's The Opportunity In Cleanaway Waste Management? Good news, investors! Cleanaway Waste Management is still a bargain right now. According to our valuation, the intrinsic value for the stock is A$4.20, but it is currently trading at AU$2.88 on the share market, meaning that there is still an opportunity to buy now. Cleanaway Waste Management's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range. View our latest analysis for Cleanaway Waste Management What does the future of Cleanaway Waste Management look like? Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Cleanaway Waste Management's earnings over the next few years are expected to increase by 95%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? Since CWY is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on CWY for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy CWY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. It can be quite valuable to consider what analysts expect for Cleanaway Waste Management from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Cleanaway Waste Management, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
