Through the first half of 2024, you couldn’t blame investors for having a sense of deja vu. Technology stocks, and particularly AI stocks, are where the alpha has been for growth-oriented investors. But if you have some cash to speculate with and the patience to wait for the market rally to broaden, this could be a good time to look for undervalued mid-cap growth stocks.  

Mid-cap stocks generally have a market cap between $2 billion and $10 billion. They can be attractive to investors because the best of the bunch go on to be large-cap stocks. Catching the stock before it makes that ride is a good way to build wealth. 

To find the undervalued mid-cap growth stocks listed here, I used a simple stock screener to find stocks within 20% of their 52-week low, and are expected to generate earnings growth of at least 15% in the coming year. That combination suggests these stocks need a little catalyst to soar to new heights.  

Coty (COTY) 

Coty (NYSE:COTY) markets beauty products, including fragrances, cosmetics and skin care. Although it’s sometimes considered a consumer staples stock, these are discretionary purchases at a time when many consumers are shutting their wallets, especially in the company’s coveted Generation Z demographic. 

At first glance, that could explain why COTY stock is down 21.5% in 2024. But that appears to be misleading. The company delivered a solid earnings report for the fiscal third quarter earnings with revenue up 10% year-over-year. An equity swap was a drag on the company’s earnings. But without the equity swap, earnings were up strongly from a year ago.

Investors could be missing that with COTY stock. If the company can deliver the 27% earnings growth that’s expected, then it’s easier to support analysts’ consensus price target of $13.25, which would be a 35% gain from its current price. Furthermore, 10 out of 20 analysts give the stock either a “buy” or a “strong buy” rating.  

Darling Ingredients (DAR)

Darling Ingredients (NYSE:DAR) is another undervalued mid-cap growth stock to watch. The company develops, produces and sells natural ingredients from edible and inedible bio-nutrients. For example, it converts animal byproduct streams into useable specialty ingredients, which makes it a play on the sustainable economy.   

However, DAR stock is down 41% in the last 12 months and 25% in 2024. That’s generally what happens when you miss analysts’ revenue and earnings expectations in the last four quarters.  

Two of the company’s core markets are in renewable diesel, and soon, the company will get into sustainable aviation fuels. There are obstacles to overcome, but investment in renewable energy will increase sharply no matter the outcome of this November’s election.

This is drawing the attention of analysts with a consensus price target of $57.07 on DAR stock. That’s an upside of over 53% with 10 out of 13 analysts giving Darling a “strong buy” rating.  

Jazz Pharmaceuticals (JAZZ)

It’s been an interesting year for Jazz Pharmaceuticals (NASDAQ:JAZZ). On the one hand, the company is in the pole position if cannabis is rescheduled, as many believe will happen. The company already has two cannabis-based products in the market today, including the leading branded epilepsy treatment, Epidiolex. It also is seeing increased revenues in its sleep and oncology segments.  

On the other hand, the company did suffer a setback when one of its pipeline drugs, suvecaltamide, was unsuccessful in meeting the primary endpoint in a Phase 2b trial. That’s the nature of this business. And Jazz has several potential trial results that could swing the pendulum in the other direction. 

That’s what analysts appear to be thinking. They have a consensus price target of $178.72 on JAZZ stock which would be a whopping 70% increase for the stock. Thirteen of 19 analysts have a “strong buy” rating on the stock.  

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.