Top 5 Mid-Cap Stocks of 2024

Key points

• Mid-cap stocks are up about 12% year to date in 2024.

• The top mid-cap stock of 2024, GeneDx, has returned over 2,600%.

• SoundHound AI has generated nearly 800% performance so far this year.

These high-performance values ​​are at the forefront of innovation.

While large and small caps get more attention, mid-cap stocks have quietly been the best performers over the long term.

Over the past 25 years, since 1999, mid-caps have outperformed both large and small caps, although large caps have performed slightly better over the 20- and 10-year periods. Mid-cap stocks have also been the best in the last 30 years.

This year, large caps have dominated as the S&P 500 has returned nearly 24%, but mid-cap companies, as measured by the S&P 400, have been strong, up 12% as of December 18.

Mid-cap stocks, which generally range from a market capitalization of $2 billion to $10 billion, are typically more volatile than large caps, with a wider range of returns. This can be clearly seen at the top as the top 5 midcap stocks of 2024 have posted some huge returns.

GeneDx, up 2,650%

GeneDx (NASDAQ: WGS) is a biotechnology stock that specializes in genome and exome testing, diagnostics, and sequencing. It started the year trading at just under $3 per share and is now around $75 per share, a ridiculous 2,650% increase so far this year.

GeneDx used to be called Sema4, which acquired GeneDX in 2022. It took the GeneDX name as the company specialized in the growing field of genome and exome sequencing and diagnostics. GeneDX soon became one of the leaders in the field, particularly in exome sequencing, which helps doctors understand what is causing symptoms or disease in a patient.

GeneDx has sequenced over 500,000 clinical exomes and has an 80% market share among ordering physicians. In the most recent quarter, it grew its revenue by 77%, reported adjusted gross margins of 64%, and reached profitability for the first time, with adjusted net income of $1.2 million. He also raised his tax revenue projection for 2024.

Given the meteoric rise, investors should be a little cautious, at least in the short term. Recently, some of the executives sold shares. But still, GeneDx seems to have a bright future.

SoundHound AI, up 780%

SoundHound AI (NASDAQ: SOUN) is currently the second-best performing stock in the mid-cap universe, up around 780% so far this year.

SoundHound AI, as the name suggests, is an AI stock that specializes in AI voice technology used in restaurants, cars, call centers, and by financial services companies, among other applications. It has exploded in recent months, emerging as one of the leaders in this rapidly growing field.

The company has been growing rapidly along with it, generating 89% revenue growth in the most recent quarter and raising its 2025 revenue guidance. It now expects between $155 million and $175 million in revenue in 2025, which would be 80% more than in 2024.

SoundHound is also not profitable, but the company expects to achieve adjusted EBITDA profitability in 2025. And like GeneDx, it is a leader in a high-growth industry, so its long-term prospects are tremendous. But it’s also extremely overrated.

NuScale Power, up 475%

NuScale Power (NYSE: SMR) is a company that manufactures small modular reactors (SMR) that generate nuclear power. The stock is up about 475% so far this year as there has been a resurgence in the use of nuclear energy. According to the International Atomic Energy Agency, nuclear energy has grown for four consecutive years and nuclear capacity is expected to increase 2.5 times by 2050.

This is because nuclear energy is considered clean energy and will be a key part of achieving net-zero greenhouse gas emissions worldwide.

Now, NuScale is not a typical nuclear energy supplier. It specializes in small modular reactors (SMR), which are cheaper and easier to install. Experts say SMRs are the future of nuclear energy and NuScale is the industry leader in SMR and the only U.S. company to receive regulatory approval for an SMR plant. It had to cancel that flagship project because it didn’t have enough subscribers, but it is developing SMR for several plants across the country.

While NuScale may be the future of nuclear energy, it doesn’t have much revenue or profit at present, so the gains in its stock price are largely speculative based on its potential. But this is a stock to watch every quarter for its incremental growth.

Janux Therapeutics and Core Scientific complete the top five

Janux Therapeutics (NASDAQ: JANX) is the fourth-best performing mid-cap stock so far this year, with shares up 432% to around $58 per share. Janux is a company that develops immunotherapies that seek to attack and kill tumors and generate tumor-specific immune responses.

Core Scientific (NASDAQ: CORZ) is a Bitcoin mining company that recently diversified into developing AI data centers. The stock price has risen since it converted some of its Bitcoin mining facilities into AI data centers, capitalizing on the boom in that space. Core Scientific stock is up about 325% so far this year.

Investors should note that mid-cap stocks, especially those of unprofitable companies in developing and high-growth industries, can be volatile. Do additional research on these and other stocks before investing.