Mid-cap stocks can be an excellent investment opportunity for those looking to diversify their portfolio. Mid-cap companies are typically defined as having a market capitalization between $2 billion and $10 billion, making them larger than small caps but smaller than large caps.
One of the benefits of investing in mid-cap stocks is that they often have more room for growth than larger, established companies. Additionally, mid-caps tend to be less volatile than small-caps while still offering the potential for higher returns.
Here are a few mid-cap stocks that may be worth considering:
1. DocuSign (DOCU): This company provides electronic signature technology and digital transaction management services. With the shift towards remote work and online transactions due to COVID-19, DocuSign has seen increased demand for its services.
2. Square (SQ): Square is a financial technology company that offers payment processing tools, including the popular Cash App. As e-commerce continues to grow, Square’s services are likely to become even more essential.
3. Atlassian Corporation (TEAM): Atlassian offers team collaboration software solutions such as Jira and Confluence. With many businesses shifting towards remote workforces in response to COVID-19 closures, these types of tools have become increasingly important.
4. Planet Fitness (PLNT): Despite temporary closures due to COVID-19 restrictions on gyms and fitness centers, Planet Fitness has continued its expansion into new markets with plans to open over 100 new locations this year alone.
5. The Trade Desk (TTD): The Trade Desk provides programmatic advertising solutions aimed at reaching audiences across various devices and platforms including TV streaming services like Hulu or Roku.
It’s important to remember that while mid-cap stocks offer potential opportunities for growth and diversification in one’s portfolio – they can also come with risks associated with any equity investment – which means it’s important always make sure you do your own research before investing any money into individual companies.