Midcap stocks represent a sweet spot for investors seeking a balance between growth potential and stability. These companies, typically with a market capitalization ranging from $2 billion to $10 billion, are well-established yet have ample room for growth. As the US economy continues its robust recovery, midcap stocks are poised to shine, offering significant returns for forward-thinking investors.
In this article, we’ll explore 10 US midcap stocks for 2025, analyzing their growth trajectories, industry potential, and recent performance.
Why Invest in Midcap Stocks?
- Growth Potential: Midcap companies often grow faster than large caps, as they scale operations or expand market share.
- Moderate Risk: Unlike small caps, these firms have more predictable cash flows and established market positions.
- Future Large Caps: Investing in midcaps early can yield substantial returns as they transition into large-cap companies.
Top 10 US Midcap Stocks for 2025
1. Powell Industries
- Industry: Capital Goods
- 52-Week Return: 230%
- Revenue: $1B
Powell Industries specializes in providing custom-engineered equipment for power management. With growing demand for sustainable energy infrastructure, the company is set to benefit from federal initiatives supporting renewable energy projects.
2. IES Holdings
- Industry: Construction
- 52-Week Return: 310%
- Revenue: $3B
IES Holdings is a leader in infrastructure solutions, offering services in electrical contracting and communication technology. Its diversified portfolio ensures resilience in the volatile construction sector, making it a compelling pick for 2025.
3. Sezzle
- Industry: Software & Services
- 52-Week Return: 3,996%
- Revenue: $222M
Sezzle is a rapidly growing “buy now, pay later” (BNPL) platform. Its innovative approach to financial services appeals to younger demographics, driving exponential revenue growth. Sezzle’s potential to disrupt traditional payment models makes it a standout midcap stock.
4. Abercrombie & Fitch
- Industry: Retailing
- 52-Week Return: 95%
- Revenue: $5B
With its successful rebranding strategy, Abercrombie & Fitch has reinvented itself as a premium lifestyle brand. Strong e-commerce sales and international expansion plans solidify its position as a high-growth retail stock.
5. Catalyst Pharmaceuticals
- Industry: Drugs & Biotechnology
- 52-Week Return: 59%
- Revenue: $461M
Catalyst Pharmaceuticals focuses on treatments for rare diseases. Its innovative drug pipeline and FDA approvals in 2024 have laid the groundwork for steady growth. With the biotech sector booming, Catalyst remains a strong contender for 2025.
6. Corcept Therapeutics
- Industry: Drugs & Biotechnology
- 52-Week Return: 129%
- Revenue: $629M
Corcept Therapeutics specializes in developing drugs that regulate cortisol activity. Its steady revenue growth and expanding market for treatments addressing metabolic and psychiatric disorders make it a reliable investment.
7. InterDigital
- Industry: Software & Services
- 52-Week Return: 97%
- Revenue: $721M
InterDigital focuses on mobile technology patents and licensing. With the rise of 5G and IoT, the company is well-positioned to monetize its intellectual property, ensuring robust growth in 2025.
8. Sterling Construction
- Industry: Construction
- 52-Week Return: 212%
- Revenue: $2B
Sterling Construction provides heavy civil and residential construction services. As infrastructure spending surges, Sterling is set to benefit from large-scale federal and state projects.
9. UFP Technologies
- Industry: Chemicals
- 52-Week Return: 87%
- Revenue: $462M
UFP Technologies specializes in custom-engineered components for medical and industrial applications. Its growth is fueled by innovation in sustainable and high-performance materials, aligning with global green initiatives.
10. Payoneer Global
- Industry: Business Services & Supplies
- 52-Week Return: 109%
- Revenue: $940M
Payoneer Global is a leader in cross-border payment solutions. With increasing global trade and e-commerce growth, Payoneer’s strong market position makes it a top choice for long-term investors.
Performance Overview Table
| Rank | Company | Industry | 52-Week Return (%) | Revenue (USD) |
|---|---|---|---|---|
| 1 | Powell Industries | Capital Goods | 230 | $1B |
| 2 | IES Holdings | Construction | 310 | $3B |
| 3 | Sezzle | Software & Services | 3,996 | $222M |
| 4 | Abercrombie & Fitch | Retailing | 95 | $5B |
| 5 | Catalyst Pharmaceuticals | Drugs & Biotechnology | 59 | $461M |
| 6 | Corcept Therapeutics | Drugs & Biotechnology | 129 | $629M |
| 7 | InterDigital | Software & Services | 97 | $721M |
| 8 | Sterling Construction | Construction | 212 | $2B |
| 9 | UFP Technologies | Chemicals | 87 | $462M |
| 10 | Payoneer Global | Business Services | 109 | $940M |
Sectors to Watch in 2025
- Software & Services: Companies like Sezzle and InterDigital will benefit from technological advancements in fintech and connectivity.
- Drugs & Biotechnology: The biotech sector, represented by Catalyst and Corcept, continues to thrive with innovations addressing unmet medical needs.
- Construction: With increased infrastructure spending, IES Holdings and Sterling Construction are set for exponential growth.
- Retail: Abercrombie & Fitch’s digital transformation highlights the potential of well-executed rebranding strategies.
- Business Services: Payoneer Global’s role in global commerce underscores the importance of seamless payment solutions in a connected world.
Conclusion
The midcap stocks listed above represent a diverse array of industries, each with strong growth drivers and market potential. Whether you’re looking for cutting-edge technology, essential construction services, or innovative healthcare solutions, these companies offer compelling opportunities for 2025 and beyond.
