With this video I look at 6 attractively valued mid-cap stocks that are trading at valuations that are lower than their expected long-term growth rates. I believe the current market is one of the most challenging I have had to deal with over my five decade career. For starters, I am a value investor, a.k.a. Mr. Valuation, that believes that you make your money on the buy side. In simple terms, this means that you are wisest when you invest in businesses when you can purchase them at or below their intrinsic value.
In the long run, value investors also invest in the business because they recognize that it is the business that generates the returns over time. I call this business perspective investing. With that said, it logically follows that the faster a business grows, the more value it creates in the future for its stakeholders. Additionally, common sense suggests that it is easier for smaller companies to grow fast than it is for larger companies. As a result, small and mid-cap stocks have often been the go-to category for investors looking for growth.
I would classify these 6 research candidates as GARP or growth at a reasonable price opportunities. Also, as hard as it is to find value in this market, it is equally as hard to find growth at value. Nevertheless, if you are looking for growth you might want to start here.
6 Mid-Cap Stocks
In the video I will be going over Polaris Inc. (PII), Thor Industries Inc. (THO), Jabil Inc. (JBL), Jazz Pharmaceuticals (JAZZ), Chemours Co. (CC), Air Lease Corp. (AL)
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Disclosure: Long THO, JBL, CC at the time of writing.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.