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3 Midcap Stocks Hitting the ‘Sweet Spot’

These picks are stable, but not done growing

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Hundred Dollar Bill in TargetMidcap stocks — usually defined as stocks that have a market capitalization between $2 billion and $10 billion — offer investors a sweet mix of stability and growth.

Sure, they’re underperforming small-cap stocks so far this year, as the Russell 2000 has gained 26% year-to-date vs. the 23% gains of the Russell Midcap Index. However, tossing your money into small-cap stocks comes with a lot more risk and volatility thanks to their frequently untested businesses and small financial cushions. Midcap stocks tend to be more established businesses and thus are slightly safer bets.

On the other side, large-cap stocks might be safer in general, but these big, well-established companies also typically have less room to grow. Hence why the Russell Midcap has outperformed the S&P 500 in four of the past five years.

The bottom line is that midcap stocks are often a “sweet spot” investment for folks that want growth potential without big-time risk. So if you’re looking for a few plays hitting that sweet spot, check out this list of 3 attractive midcap stocks:

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